Executive Summary:
The following business plan will outline the start-up operations of House Ltd., including funding, structure, marketing and financial information.
Key points to note:
- Dave Mannix is operating CEO and founder of House Ltd., as well as the inventor of the ‘Fynder’ product. Management and supervisors will be appointed as expansion dictates.
- The company is based in Little Island, Cork including offices and manufacturing.
- The product is centred on its simplicity, and this is the greatest tool to allow it to penetrate the market.
Company Description:
Founded in Cork in 2014 by UCC engineering graduate Dave Mannix, House Ltd. Operates out of a small manufacturing plant in Little Island, Cork, with in-house offices allowing for administration. The company currently employs 7 people, with hopes to expand in the near future.
The main objective of House Ltd., and its founding product the Fynder, is to simplify the arduous process of finding lost objects around the home, such as remote controls and wallets. A small electrical device, the Fynder, is attached to/inserted into easily lost objects and connected with the Fynder smartphone app, which operates with GPS and radio capabilities and track the Fynder device, which simultaneously emits a loud noise to aid the search. The device comes in two forms: a credit card design, for use in wallets and/or purses, and a small adhesive chip for other objects.
Strengths
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Weaknesses
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Opportunities
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Threat
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Market Analysis:
The product is potentially marketable to all smartphone users, which is a significant proportion of the population: over 46 million people across Britain and Ireland.
Competition exists in the form of other devices for finding objects such as StickR TrackR and Tile. However, Fynder’s greatest advantage in the market is its simplicity and low cost when compared to its competitors. For example, StickR TrackR requires the use of an external device to locate the tracking device, and Tile’s tracking device starts at $25 (€21.09), whereas Fynder’s RRP is a more modest €5 for the credit card style and €6 for the chip design.
Expectations are that the company will hold 30-50% of the British and Irish market by the completion of operating year 3, allowing it to use this foothold to access the market in mainland Europe in countries such as Germany and France.
Sales Strategy:
The items will be priced as stated above. The cost of production is currently estimated at €1.72 per credit card unit and €2.46 per chip unit. This allows a reasonable margin for other costs before mark up.
Future expansion will reduce costs due to economies of scale.
The product will be promoted and sold in large chains, such as SuperValu, Aldi and Centra in Ireland and Tesco and Lidl in the UK.
The battery life will be in the region of 18-24 months depending on usage and the consumer will be alerted to low battery (and the need for replacement via the Fynder app, thus demonstrating the need for a replacement.
Research & Development:
Methodology:
The team of engineers working in the development section of the company is experts in a design methodology called “TRIZ” – Russian for the “Theory of Inventive Problem Solving”. “TRIZ” was the method behind the design of the original “Smart Lock”, and its effectiveness is proven as it has already been used in well-known companies such as Ford, LG, Procter and Gamble and Johnson & Johnson. Innovation is at the heart of the “TRIZ” methodology.
Ongoing Research:
Effort is constantly being made at innovating and improving. At House Ltd., this includes attempting to find better alternatives to the Fynder design, by way of improving the battery life, lowering costs, increasing range and any possible extra features that could potentially be rendered.
Staffing & Operations:
Staff organisational chart, Year 1
| Year | Employees |
| 1 | 7 |
| 2 | 10 |
| 3 | 14 |
| 4 | 20 |
| 5 | 34 |
In the first year of operation, there will be seven people employed by the company: The CEO, a Production Manager along with two Production Officers; a Research and Development Officer; a Sales Manager and a Marketing manager. The neat should introduce an additional member in each of the Production, Sales and Marketing Departments, and continuing in the same vein while including additional R&D staff.
Health & Safety:
Certain standardisation requirements:
- ISO 19133Geographic information – Location-based services – Tracking and navigation
- ISO 11469:2000 Plastics – Generic identification and marking of plastics products
- ISO 14051 Environmental management – Material flow cost accounting – General framework
Risk assessment:
| Risk | Danger | Probability |
| Choking (small parts) | 7 | 2 |
| Electric Shock | 3 | 1 |
Ethics:
House Ltd. aims to provide a quality product while being socially conscious and as environmentally sound as possible. All waste materials at the plant (mostly plastic) are recycled. Work is being done on implementing solar charging panels onto the Fynder chip (credit card style would not be exposed to sunlight) to extend battery life.
The company makes great effort to hire locals and/or graduates of UCC/CIT in the interest of supporting the local economy.
3 Year Financial Projections:
| Year 1 | Year 2 | Year 3 | |
| Sales (€) | 62500 | 120000 | 275000 |
| Exports (€) | 12000 | 68000 | 1800000 |
| Net Profit before Tax (€) | -26000 | 6500 | 36700 |
| Investment (€) | 60000 | 30000 | 50000 |
Funding Requirements:
Sources:
- Promoters’ funds
- Bank lending
- Grants or loans from agencies
Another potential source of initial capital would be ‘crowdfunding’ on a website like Kickstarter, which generates publicity as well as funds.
Required for:
- Equipment
- R&D
- Marketing
- Staffing
davemannix 