Our biggest savings of the year
Two of our strengths are the low cost structure and flexible personnel needs. Sales people with experience relevant to each new respective target market can be attained as need dictates, but the initial management team consists of the founders themselves, with little operational support. The Board of Advisors will be a critical foundation for the successful growth and development of SAFEassure, LLC.
Initially, both founders will share in the operational and financial responsibilities of the company. They will be responsible for finding, attaining and managing new accounts. Both founders will be responsible for making direct sales, marketing, and all other operational tasks involved with making this company successful. The CEO will oversee all company decisions.
Devon Nevius: President/Founder/CEO
Devon Nevius will oversee operations in all aspects of the business. In addition to managing client relationships, marketing and product expansion, Mr. Nevius will be responsible for hiring new personnel members to enhance the management team. Mr. Nevius will be receiving his bachelor of Science Degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.
In addition to this, Mr. Nevius founded and managed Green Leaf Collegiate Landscaping in Eugene, Oregon while a full-time student. Gross sales for the company reached $75,000 in 2004, and the company employed two foremen in addition to Mr. Nevius and his partner. Green Leaf Collegiate was sold early in 2004.
Kevin Meinert: Founder/COO
Kevin will contribute in both sales and financial management for SAFEassure, LLC He has worked as a manager at a restaurant and as a computer technician with several years of experience. In the spring of 2004, he will be receiving his bachelor of Science degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.
Board of Advisors:
Jack Soap: With over ten years in the soap industry, Mr. Soap has developed significant relationships and experience with other industry leaders. Currently running Birth to Three, a Eugene company that develops child hearing aids and programs for young parents, Mr. Soap is a dedicated, experienced and successful entrepreneur. He will be a valuable asset to the creation, set up and implementation of our product. Mr. Soap will consult and provide market information to the executive team and use his established contacts and relationships to accelerate the development and implementation of the product. Specifically, he will be critical in the establishment of a complete system to get the soap base from its original manufacturing plant to our customers.
John Patent: Dr. Patent is the Director of the Technology Transfer department of the University of Oregon. Dr. Patent is in charge of protecting and patenting concepts and technologies developed as a result of the myriad of research and development projects continually happening within the University.
Wilson Science: Mr. Science has been a Professor of Chemistry at the University of Oregon for over eighteen years. Mr. Science specializes in chemical interactions that break down over time. He has worked on projects dealing with plastics and containers that will quickly bio degrade after discarded, and other products with short half-lives.
Franklin Money: Mr. Money is the Senior Vice President of the Lake Oswego Branch of Bank of America. Mr. Money specializes in business and investment consultation for his clients, helping entrepreneurs develop businesses efficiently and effectively.
Management Team Gaps
It will be necessary to hire new sales associates as we expand into each new market segment. An individual with experience in networking with the government, perhaps having specific contacts with the FDA and CDC, will be a necessary addition to successfully create a complementary relationship with government organizations. A child-care industry professional with relevant experience and networks in the industry will be acquired to accelerate sales growth. After sufficient cash flow has been established and revenues have plateaued, we will hire a chemist on salary to expand our existing product line. A chemical expert working as a consultant will initially be useful for three reasons:
- Aiding in the research and creation of a safe initial prototype.
- Troubleshooting problems with our product and answering customer questions and concerns about SAFEassure’s products as they arise.
- Further developing the product for future target markets.
In order to free up enough capital to continue operations and possible expansion, our executive team will not receive more than a living wage salary until the product is well into the black. We understand that as a new product we will need technical support and legal advice; this will be currently outsourced to various consultants.
All sales for the first year of operation will be closed by the executive management team. Starting from the second year, we will employ a Sales Associate who will handle sales transactions. His/her compensation will be a combination of fixed salary and commission on sales. For the purposes of financial planning, we combined the Sales Associate’s compensation into an aggregate forecast.
To be flexible in meeting the customer demand, we plan to stock a minimum amount of product in a rented warehouse. At the beginning, all incoming product stock will be accepted and later dispatched to customers by the company’s executive team. Starting in the second year, we plan to hire a full-time Inventory Manager to handle these tasks.
As stated earlier, development of new products will not start until the second half of 2008. As such, related R & D costs are beyond the planning horizon of this document. However, we plan to earmark $20,000 and $40,000 for the second and third years of operation, respectively, under “R & D” for additional expenses related to the patent protection of our products. Should these expenses be minimized, our bottom line profitability (especially in the second year of operation) will be positively affected.
|Year 1||Year 2||Year 3|
|Research and Development||$0||$20,000||$40,000|