George S. Bottlieb founded Bottlieb Innovations, Inc. The Escondido, California-based company has developed, and is preparing to manufacture, a simple device which will compute the area of a walked perimeter. Bottlieb’s patented Digital Geographer product accurately computes area in a fraction of the time required by current area measurement techniques which rely on distance measuring wheel technology.
Development of Bottlieb’s Digital Geographer product is complete, and the manufacturing component of the business is well into the planning stages. Because the Digital Geographer contains few components, its manufacturing process is expected to be relatively simple.
The majority of Bottlieb’s initial sales will be directly to customers in California’s fast-growing construction industry, but the company plans to swiftly expand its domestic and worldwide sales.
2.1 Company Ownership
Bottlieb Innovations is a privately held corporation, registered in the state of California. Ownership is broken down as follows:
70%: George Bottlieb – founder, president and CEO.
10%: Jay Rosenburg, Jr.–vice-president.
10%: Britney Bottlieb – CFO.
10%: Albert Bottlieb.
2.1.1 Start-up Summary
Bottlieb Innovations’ start-up expenses are illustrated in the following chart and table. The molds required to manufacture the plastic wheel and encoder box represent the largest single start-up expense.
100 shares of company stock were issued at a price of $50 per share. The sale of stock, combined with an interest free short-term loan, satisfied the start-up funding requirements.
|Insurance (8 mos.)||$800|
|Back Rent (8 mos.)||$5,600|
|Production Equipment – Benches / Tools||$2,000|
|Plastic Molds – Wheel / Encoder Box||$20,000|
|Office Computers / Software / Equipment||$5,000|
|Total Start-up Expenses||$35,200|
|Other Current Assets||$1,800|
|Start-up Expenses to Fund||$35,200|
|Start-up Assets to Fund||$104,800|
|Total Funding Required||$140,000|
|Non-cash Assets from Start-up||$7,800|
|Cash Requirements from Start-up||$97,000|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$97,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$40,000|
|Company Stock Sale||$100,000|
|Additional Investment Requirement||$0|
|Total Planned Investment||$100,000|
|Loss at Start-up (Start-up Expenses)||($35,200)|
|Total Capital and Liabilities||$104,800|
2.2 Company Locations and Facilities
Bottlieb Innovations, Inc. is located in an industrial district of Escondido, CA. The approximately 1,500 square-foot, freeway-close facility includes office, workshop, and assembly space, as well as ample parking.
In terms of capital equipment, manufacturing is not heavily automated. Product assembly requires minimal skills and tools. The company owns several well-lighted workbenches and ample tools required for assembly. Additionally, the company owns four networked computers with a DSL connection to the Internet, as well as financial and CAD software packages.
Bottlieb Innovations, Inc.
1800 Simpleton Way #404
Escondido, CA 92029