Aircraft Weighing Systems Business Plan

Heavy Lifting, Inc.

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Company Summary

Heavy Lifting, Inc. is being formed in April, 2005 to develop a model and prototype for approval after trial by the FAA and thereafter as a provider of Heavy Lifting aircraft weight and balance systems and consultant services to the FAA and airports in the U.S., and subsequently around the world. Its office will be in Gold Coast City, California.

The company will provide Heavy Lifting aircraft weight and balance systems and consultant services to airport owners, aviation authorities, airlines, government agencies and other interested parties, such as insurers, manufacturers, accident investigation bodies and maintenance companies.

The founders of Heavy Lifting, Inc. are:

  • Captain A. Airway, MBA - has over four decades of experience in the aviation business as an ex-military pilot, international airline pilot, past ALPA VP and President, Pilot's MBF Trustee and small business owner. A is a Fellow of the Royal Aeronautical Society. A is the inventor of Heavy Lifting Systems.

  • Mr B. Freeway, MBA FRAeS - has over two decades experience in international aviation consultancy through owning and operating his own business, Aviation Consultants International. Previously he was a helicopter pilot for approximately 15 years in Australia. B is also an Aviation professor at GOP University, Nathan, California.

  • Mr C. Highway -  a former principal shareholder, Company X (weigh machine manufacturer). C is presently a weigh bridge consultant. C has been at the design and innovation forefront of weigh bridge design in the U.S. and has many firsts to his credit. Individual axle weight measurement for locomotives and designing and building a 400-ton mining-dump-truck weigh bridge are just two examples.

  • Mr D. Byway -  a founding partner of Company Y, Gold Coast City, California. As a founding partner of Company Y, D is involved in all forms of commercial law, including start-up business funding, conveyance and property development both in US and overseas. D gained his Law degree at UCLA.

  • Mr E. Expressway - has had over two decades of experience in the food processing and packaging industry and brings international marketing and service engineering experience to the company. E was involved in the New Zealand start-up of his company before moving to the U.S. to become the manufacturing and marketing manager. E travels overseas extensively.

2.1 Company Ownership

Heavy Lifting, Inc., a public unlisted company, will be registered in Gold Coast City, California and will authorize 30,000,000 shares of common and preferential stock. 10,000,000 shares will be set aside as founders' stock to be divided up amongst key founding shareholders as follows, based on their investment:

  • CEO, A. Airway 40%.
  • Manufacturing Director, C. Highway 10%.
  • Project Director, B. Freeway 10%.
  • Legal Services Director, D. Byway 10%
  • Marketing Director, E. Expressway 10%
  • Venture capital provider 20%

It is also envisaged that management stock options will be made available to key management personnel after operations commence. Founders' stock plus option stock will not total more than 33% of the authorized shares.

Initial seed capital is to be attracted by way of either an advance payment or other negotiated financial arrangement or both with:

  • Funds from private venture capital providers in U.S. or elsewhere in the world.
  • Funds from U.S. Government innovative and business sponsorship schemes.
  • Sole private investor (Company or individual).

The expected proceeds from the Private Placement are expected to be $2,000,000 at "seed" stage and $300,000,000 in I.P.O. proceeds (projected at $3 per share). Management cannot assure that an I.P.O. will be available at the time desired and at the price sought.

2.2 Start-up Summary

Heavy Lifting, Inc.'s start up costs are projected below, and will be provided directly from "seed" capital.

In the first year year we will build (2) Heavy Lifting machines as follows:

  • One (1) prototype at DEF Airport, CA, US.
  • One (1) prototype at GHI Airport, Dublin, Ireland
  • The initial two (2)units will be prototype models to gain experience and gather data to prove the Heavy Lifting concept is viable and performs to expectations. It will also be used to develop standard operating procedures concerning FAA/CAA rules and create a database of weight & balance information. A free trial period of 6 months per unit should be sufficient to achieve these goals. Once approved, the prototype units will be available for sale. Likely customers are the U.S. and Irish Governments, DEF International Airport or private investors.

Once approved, Heavy Lifting will market the product extensively in US and Europe. Pricing for these Heavy Lifting systems is provisionally estimated at $1,000,000 each (sales of these prototypes are listed in the first month of the plan). Costing is estimated at $650-750,000 each reducing as R & D costs are absorbed. Costing includes consultant services, manufacture of Heavy Lifting locally and under license in Ireland and elsewhere in the world. These prototype materials costs are listed under Inventory, in the Start-up table, below. We will also need to buy equipment sufficient to begin the production process, listed as current and long-term assets, below.

The above figures assume a Deluxe Heavy Lifting Mk I model without customization. The Mk I model includes:

  • Visual display panel adjacent to the taxi way.
  • Airport operations data link.
  • ATS operations data link capability
  • CAA operations data link capability.
  • Airline operations data link capability
  • Third party data link capability.
  • Heavy Lifting, Inc. database link. 
  • In ground installation.

Securing sufficient funding to support the introduction to the aviation industry of Heavy Lifting systems. Specifically; the research and development costs associated with producing a computer model, a portable demonstration unit and funding for the building testing and operation of at least the first full scale unit in ground for FAA; the operation of this unit free of charge for 6 months to build an initial data base.   

Due to the need for Government approval, the FAA has been approached on a personal basis. Heavy Lifting Systems needs to build, test and trial its product for a period of up to 6 months. Then the aviation authorities need time to develop rules, regulations and SOP's for using the Heavy Lifting Systems; they have given us a time frame of a further six months. This makes a total of one year for our start-up period, before payment for the first systems.

This is a necessary evil of creating a world first. It is akin to designing a new type of aircraft. First you must build it to demonstrate it will fly. In the Heavy Lifting case, the weigh bridge design is not new, but the application of the customized weigh bridge to aircraft, and the formulas in the software that allow weight & balance for such a complicated craft to be measured, are totally unique.

Start-up Funding
Start-up Expenses to Fund $65,550
Start-up Assets to Fund $1,650,000
Total Funding Required $1,715,550
Assets
Non-cash Assets from Start-up $1,950,000
Cash Requirements from Start-up $1,000,000
Additional Cash Raised $1,300,000
Cash Balance on Starting Date $2,300,000
Total Assets $4,250,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $990,550
Accounts Payable (Outstanding Bills) $25,000
Other Current Liabilities (interest-free) $0
Total Liabilities $1,015,550
Capital
Planned Investment
Founders $1,000,000
Investor $1,000,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $2,000,000
Loss at Start-up (Start-up Expenses) ($65,550)
Total Capital $1,934,450
Total Capital and Liabilities $2,950,000
Total Funding $3,015,550
Start-up
Requirements
Start-up Expenses
Legal $3,000
Stationery etc. $1,000
Business Plans $3,000
Company product patent, trade mark registering and LOGO design $3,000
Operating Expenses during Prototype build (1 year) $50,000
Website design and publishing $5,000
Accomodation Auckland Hyatt Rental car Hertz $550
Total Start-up Expenses $65,550
Start-up Assets
Cash Required $1,000,000
Other Current Assets $250,000
Long-term Assets $400,000
Total Assets $1,650,000
Total Requirements $1,715,550

2.2.1 Start-up Funding

To fund our start-up requirements, we will take out a long-term loan, repayable over 10 years. We also need a large investment. For this investment, we are prepared to offer 20,000 shares of equity stock in the venture (see Company Ownership, above, for details). Dividends between start-up and 2010 will be dispersed. Details of the investment analysis can be found in the Financial Plan section, below.

2.3 Company Locations and Facilities

Management intends to operate initially from a home office based in Gold Coast City, CA. Office space allocated is 200 sq ft at no charge during the first year of start-up. Virtual office services will be provided as necessary. All printing, faxing, copying and electronic mail will be provided at this office, except for embossed Logo and letterhead printing. 

After start-up, in our first plan year, Heavy Lifting, Inc. will occupy commercial office space at [proprietary and confidential information removed]. This space is available at $100 sq. ft., plus parking fees and maintenance fees.

This space is sufficient for the following usage:

  • CEO's office
  • PA Office manager Foyer
  • Board room Library
  • Cubicle space for contract staff and software engineer
  • Equipment space, computer server, printing room, office storage

Later, regional offices are planned for locations to be leased in Montreal, Canada (North America Branch), Bangkok, Thailand (Asia and SE Asia Branch), and Dublin, Ireland (European Branch).

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Start-up Funding
Start-up Expenses to Fund $65,550
Start-up Assets to Fund $1,650,000
Total Funding Required $1,715,550
Assets
Non-cash Assets from Start-up $1,950,000
Cash Requirements from Start-up $1,000,000
Additional Cash Raised $1,300,000
Cash Balance on Starting Date $2,300,000
Total Assets $4,250,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $990,550
Accounts Payable (Outstanding Bills) $25,000
Other Current Liabilities (interest-free) $0
Total Liabilities $1,015,550
Capital
Planned Investment
Founders $1,000,000
Investor $1,000,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $2,000,000
Loss at Start-up (Start-up Expenses) ($65,550)
Total Capital $1,934,450
Total Capital and Liabilities $2,950,000
Total Funding $3,015,550
Start-up
Requirements
Start-up Expenses
Legal $3,000
Stationery etc. $1,000
Business Plans $3,000
Company product patent, trade mark registering and LOGO design $3,000
Operating Expenses during Prototype build (1 year) $50,000
Website design and publishing $5,000
Accomodation Auckland Hyatt Rental car Hertz $550
Total Start-up Expenses $65,550
Start-up Assets
Cash Required $1,000,000
Other Current Assets $250,000
Long-term Assets $400,000
Total Assets $1,650,000
Total Requirements $1,715,550