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THIS AGREEMENT (the "Agreement) is entered into on this 21 st day of April 2016 by
Cevdet Furkan Ozgunaydin and Inter Stellar group between any third party, located at Kaunas
Lithuanua( the Disclosing Party).
The Recipient here (..) to desires to participate in discussions regarding Inter Stellar
Intellectual Property/(the Transaction). During these discussions, Disclosing Party may
share certain proprietary information with the Recipient. Therefore, in consideration of the
mutual promises and covenants contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
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or future business activities of such party, its affiliates, subsidiaries and affiliated companies;
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Disclosing Party
Receiving Party
By
By _____
Name:
Title: Mr.
Title:
14
[Inter Stellar]
[K.Donelaico Gatve]
[Inter Stellar]
Business Plan
Prepared: [13/03/16]
Contents
Business Plan template.......................................................................................1
Business Plan Summary......................................................................................4
The
The
The
The
Business.................................................................................................4
Market....................................................................................................4
Future.....................................................................................................4
Finances..................................................................................................5
The Business.......................................................................................................5
Business details............................................................................................55
Organisation chart..........................................................................................5
Management & ownership...............................................................................6
Key personnel................................................................................................6
Products/services...........................................................................................8
Innovation.....................................................................................................8
Risk management...........................................................................................9
Legal considerations.......................................................................................9
Operations.....................................................................................................9
Sustainability plan........................................................................................11
The Market........................................................................................................12
The Future........................................................................................................17
Vision statement...........................................................................................17
Mission statement.........................................................................................17
Goals/objectives...........................................................................................17
Action plan..................................................................................................17
The Finances.....................................................................................................18
Supporting documentation................................................................................24
The Business
Business name: INTER STELLAR
Business structure: Company
Business location: Kaunas Lithuania
Relevant owner experience: 2 years on Tourism and Hotel Management. 3 years on
Industrial Technology Management
Products/services: Electirc sockets with wireless technology.
The Future
Vision statement:
Reduce and eliminate household accidents caused by plugs, reduce the cost of electricity for
businesses or household, give freedom to user of controlling via wireless.
Goals/objectives:
Short term goals are ;
The Business
Products/services: Inter Stellar group is focused on solving daily life problems related with
design of the current products. We are offering a variety of services with our semi
professional start up team. We belive the continues improvement of products and services
therefore we choose an innovative approach to solve the problems.
Organisation chart
Figure 1: Organizational Chart
CFO (Tural
Gurbanov)
Industri
al
Design
Finance
CEO
(Furkan
Ozgunaydi
n)
Manufa Lega
cturing
l
Logisti
cs
CMO (Jeremy
Reneudin)
Marketin
g
Sales
Purchasi
ng
Name
Expected
staff
turnover
Chief Executive
Officer
Mr.Furkan
Ozgunaydin
Chief Marketing
Officer]
[Mr Jeremy
RenAudin]
[12-18
months]
[Chief Operating
Officer
[Mr Tural
Gurbanov]
[12-18
months]
Sales
[Ms Laurene
Heimferte]
[12-18
months]
Purchasing
[Mr.Nathan
Ferrete]
[12-18
months]
Marketing
Ms. Camille
Cecchin
[12-18
months]
Manufacturing
Ms. Saskia
Seimol
Sebastian and
Mr.Sajith Saji
[12-18
months]
Finance
Mr Sarunas
Neimontas
[12-18
months]
Design
Mr.Rahul
Singh
[12-18
months]
Legal
Mr.Celil
Mehdiyev
[12-18
months]
Logistics
Mr.Tanribey
Babayev
[12-18
months]
Products/services
Product/Service
Description
Smart Socket
Market position: Competetive. As there are similar products, we expect to conquer market
with our mission. Like insurance companies selling insurances for imaginery situations, we
expect to fix the problem rather than sell money for money.
Unique selling position: Other may have focused on more complex problems we expect to
fix small problems which no one cared to change before
Value to customer: Neccesity product.
Growth potential: Our potential is directly related with new constructions, furnitre stores,
and people who wants to change their current sockets.
InnovationFurkan Ozgunaydin
Research & development (R&D)/innovation activities
In long term we will focus on big data analysis and A.I for our future products. The A.I will
help users to control the process much more easier. With the analysis of big data that we will
gather about consumptions such as what product takes most electric, the probability of
accidents and much more which will be available for A.I to manupilate that information and
enable it to take preventative actions if necesery.
or stealing. After the testing process we expect to make legal rights, such as patenting,
Trademarking. We are planning to make it in EPO which will be cheaper than ICP.
Risk management
Risk
Likelihood
Impact
Strategy
Legal Issues
Likely
Medium
Strategical patenting,
manipulating IP system
using utiliy or other ways
to secure our product.
Connectivity problems
Likely
High
Financial Problems
Highly Likely
High
As there is no capital, it
will be hard to raise it.
Protoyping
Likely
Medium
Rates of custom
duties applied to
Limit on
Nos.
Name of commodity
Measurement
unit
Relative
commodities
price
can be
(in USD)
transported for
free
each unit of
measurement for
commodities
transported in
excess of
specified limits
(in US dollars,
relative)1
1.
Socket
1 unit
3,0
10 units
1,5
Since we have a contract with logistics firm that they can carry up to 50000 units in one
transport. Therefore, we agree to bring that amount of product in order to check it will work in
Lithuania or not. Totally, as we pay 0.1$ (0.09 euro) for every 50 units, we pay 100$ (93 euro)
for 50000 units. Costs are so low that it will increase our benefits. To calculate the ready data
at 1.15 euro, 1.15x50000 = 57500 euro, adding 93 euro as a tax, and also 12000 euro to
logistics, it will be equal to 69593 euro total. This means sales cost overall.
At last we deliver the new products to the megastores and simple shops at the price of
2.74 euro. Overall the sales will be 2.74x50000=137000.
Total sales
Total costs
Profits
137000 euro
69593 euro
67437 euro
If we make this transportation with this logistics 10 times a year, there will be 674370
euro profit for a year. It means that in one transportation, we get the benefits of 67437 euro
overall.
Net profit: 67437 euro*0.8(20% income tax) = 53950 euro in Lithuania for the first time.
Operations
MANUFATURING
Sebastian
RAWMATERIAL
The main thing that need to make electric plug socket with sensor are made of
Bakelite
Glass
Galvanized (nickel plating material and zinc plating material)
Plastic
Metal sheet
Chemicals
Cut on cut off sensor
Actuators
Pin(brass)
Fuse element(copper)
Fuse clip (copper)
Fuse ends (copper)
Cable wire (copper)
Cord grip (nylon)
Cable sheath (PVC)
Sensor working
Stimulus
Medium (pressure
&temperature
variance)
Signals
Target handling
Resistance- voltage
(information)
Electricity cut on and cut off sensor are being used. provides real-time recognition of a
power source going off or coming on. Common use is to monitor the power supply
To implement process control, the transistor must collect data from and transmit
signals to the production process
Components required to implement the interface:
Devices for ADC and DAC & I/O devices for discrete data (both can be done
through a controlling application installed in mobile or a personal remote)
Presses
Trimming machine
Furnace
Sheering equipment
Milling machine
Lath (Bench)
Air compressor
Drills (Bench)
Grinders
The main risk with device will be itself, which is connected to power source/cable therefore in
case of no electricity we need to find an alternative energy to enable socket for autonomous
control of the flow.
The other risk is related with connectivity of wireless. Our device can work withitself but It
will reduce the freedom of user. In some places on world there are still people without
internet. This can be main risk.
Opportunities
Threats
Political
Economical
Social
Cultural
Technological Scientific
Investment
innovation.
research
and
In this table, we chose to cross the different environments with opportunities/threats. The
purpose is to bring out directly all opportunities and threats for each sector, and have a
specific analysis for each of them. We can observe that the market offers many opportunities
which bode well for the Smart Plug. Real threats are almost inexistent concerning the macro
environment.
Weaknesses
Innovating product
High quality
Expensive
Well-designed product
Thanks to this analysis, we are able to use the SWOT matrix and cross the
strengths/weaknesses of our plug with the opportunities/threats of the market.
SWOT
analysis
Strengths
Innovating product
Well-designed product
Many features
Young teamworkers
Money savings
Internet or Bluetooth connection
Weaknesses
Difficult to insert in people daily life
Expensive
Strong competition
Hard penetration of C2C market
Page 33
Opportunities
Subventions from the State
Households try saving money
Well-developed internet network
Young connected generations
Investment for R&D
Smartphones democratization
Development of Smart Houses
Interest for ecological products
Strength-Opportunity strategies
Innovating to get subventions
Allowing people to save money
By using smartphone, a democratized
product
By proposing a low consumption
product
Weakness-Opportunity strategies
By reaching Smart House market
Your competitors
In order to identify our competitors, we decided at first to analyze the competitive
environment by using PORTER Five Forces Model.
suppliers: Medium-low
High
Many competitors
Strong competition,
According to the obvious analysis, we can observe that competition is intense. Smart
Plug market is already well-developed, and we have to take it into consideration if we want to
reach it. Therefore, the product and marketing strategies have to be adapted to be different
from our competitors. The next table will summarize what features our Smart Plug needs to
be competitive in the market.
Features already existing
wifi/Bluetooth.
market)
Proposing a top of the range external design,
plugs, and they will be directly installed to their customers. Another example, when
construction companies will build Smart Houses, they will directly implement our plugs.
This distribution strategy will allow to penetrate the market differently, and get around our
competitors by mitigating our weaknesses and exploit our own strengths.
Page 36
Product.(LAURENE HEIMFERTE)
It is a smart electrical wall plug that is controlled from a smartphone or tablet via Bluetooth /
Wi-Fi. The idea is to advantageously replace a programmer with the ability to turn on and off
at a set time, connected devices but also to measure their electricity consumption.
The installation is very easy. When launching the application, sensing the plug is launched.
After two to three seconds, it appears. Of course, the application is able to support multiple
plugs. That allows to create groups of corresponding devices, for example, every room in the
house. But it is also possible to control several plugs simultaneously. Each connected terminal
is then represented by its icon. To make sense of all the plugs, it is advisable to rename them.
Simply pressing a few seconds on the corresponding icon which gives access to the details of
the plug. Here you can change the name, associating rooms and even activate the proximity
detection. This last feature allows the plug to be activated automatically when it is in the field
of your smartphone or tablet and get off when it is not inside anymore. Useful for lighting the
house.
Price
Concerning the price and considering the analysis of costs of production we should take some
points to determine at what price we will sell our plugs.
First point : the average price of the normal plug : between 2 and 3 euros for a plug.
The cost of production : if we refer to the part of purchase and suppliers we can see
For BtoB : more the firm will order less the price will be.
0 to 20 = 25 each
20 to 25 = 20 each
Page 37
Place
The first step is to choose some places to sell our products. Considering our targets
(principally BtoB but also BtoC) its important to make the plug available for all kind of
expected customers.
BtoB : First question : where the professional used to buy materials ? In speciality
store first so we decide to integrate our product in this kind of store (artisan, electrician).
BtoC : The customer target is in fact for the Do-It-Yourself users. Indeed, our plug will
Fort both targets we will have an internet website with a presentation of our product,
Promotion
Commerciale representative
The commercial representative is a good way to manage the personal relationships with
customers. These people work for the company. In our case, their main aims are to promote
our product by approaching the potential customers in BtoB. Specifically, they will meet in
face to face the providers of house furniture in order to sell our product. They are playing the
main part in our product promotion.
Page 38
The advertising
The advertising is also a big part in our way communication. It uses to cause costumers
behaviour, create a notoriety and transfer information to get answers from the aim. To
promote our product, we should use magazine specialized in home furniture.
-
Trade fair
To participate at this kind of events might be really useful to create some new partnerships.
The main goal of this way to promote is not to sell but to increase our notoriety and to
encourage a first try of our plug. These trade fair could could give us the opportunity to meet
the market and the costumers
Page 39
Media Release
Page 40
Material
Supplier
Unite Price ( )
Bagelite
Professional Plastics
Glass
Kosta
Galvanized
Ponzio
Plastic
Master Spektr
Metal
Metals Depot
Gem Sensor
1,40 euros
actuator
Ali EXPRESS
0, 76 euros
PIn ( bras)
HK Hushun group
0,04 euros
Fuse
Changzhou Wisdom
Electronics
0,001 euros
Cable Wire
Home depot
Cord Grip
Digikey
0,32 euros
Cable Sheath
0, 45 ( 1 meter )
Page 41
According to the prices proposed by our suppliers its now easier to determine the
production cost per unit. If we take in consideration the informations in the tab above , the
cost of production will be 3,72 euros. Its now necessary to determine the sale price by
applying a margin according to the strategy decided by the marketing team.
After few years of partnership with the suppliers, it will be possible to negotiate harder
the price and then reduce the production cost.
Of course, by following a strategy of reducing costs, its also necessary to limit the
level of the stock and like Toyota , try to apply a just-on-time delivery policy.
Page 42
Logistics..Tanribey Babayev
Interstellar will promote the new brand to all distributions in all world starting from
Lithuania. After every country department receives the new product, distribution in the
country started. In order to spread the new products to the all regions of countries, Interstellar
needs transport managers in addition to marketing specialists and managers. There is
distribution policy in the company that it starts with low cost districts-more labor districts.
After finding enough worker and channels, Interstellar prefers to spread to the regions.
Page 43
-Glass: For that goods to importing to Lithuania best way to get from Sweden from "Kosta"
company which is more famous brand in the world with their products.
Beside "Kosta" Company is located more cities in Sweden so we can get our products from
which is the more near city and useful way to obtain it by Cargo shipping.
products. In other option, Interstellar can open the transport department, which will provide
the company with delivery system to the stores. New vacancies are announced and the
company provides transport managers, drivers, and cars. It will be the best choice for making
new product.
central department will provide every country with goods like power socket. Then the process
started inside the country. The company agrees with mega stores to sell its new product, and
some retailers start to distribute the product to all country. Choosing the small shops is the
responsibility of retailers and transport department. The central location of company in
Lithuania is in Vilnius, it will expand to other regions during the next years.
markets. As Interstellar is situated in Lithuania; the air transportation is the best way of
delivery system. In spite of the fact that it will cost a bit more, it is the safe and speedy way of
transportation. By selecting the air transportation Interstellar reduces the inventory levels and
packaging costs.
management. It should be as cheap as possible that the transportation reduces the distribution
costs, and improves customer service. Interstellar looks through all the details of physical
flow of the product in order to satisfy all the customers requirements. The company
Page 44
professionally fulfills inventories, transportation and other logistic services in time in attempt
to meet customers needs and wants.
Page 45
22 days month
8h per day
units
50,000
500,000
41,667
1,894
236.74
3.95
turnover, eur
137,000
1,370,000
114,167
5,189
648.67
10.81
we can see that to start supply other departments with steady and secure amount of product,
we need produce about 1.900 units per day on average. Production site must work in one 8
hours shift, 5 days per week, 12 month per year.
One electric socket production line of medium-low productivity capacity, serviced by 4-5
operators, technical support and supervised by one team leader, is enough to ensure smooth
integration in to the market. All needed equipment for this line is specified and described in
chapter Machinery and Equipment. By current market prices installation of such production
line should cost 40.000 100.000 eur, depends on manufactoring companies of main
equipment.
All the target wage costs per month of first production line:
Page 46
operators
contractor
team leader
technical support
salary (one
month)
taxes
4
780
1
450
1
965
1
1,050
total cost
(one month)
566.32
1,346.32
294.06
744.06
700.63
1,665.63
762.35
1,812.35
9,607.32
It
is
One Team Leader with expierence in production of electric parts, high team building
skills and high LEAN knowledge.
One Technical Support engineer with experience in production of electric parts, and
high skills in maintenance of all the machinery and equipment in site.
All the production costs of first production line (including logistis) for one month after
production starts and reaches expected level:
0.240
0.231
0.789
0.042
0.020
0.028
0.041
1.39
1 month, eur
41,667
10,000.00
9,607.32
32,859.35
1,750.00
833.33
1,158.33
1,708.33
57,916.67
Part, %
17.27
16.59
56.74
3.02
1.44
2.00
2.95
100.00 It is
clear that the main production costs will be: raw materials (56.7% of whole unit's production
costs), production transportation (17.3%) and wages (16.6% ). It is most sensitive parts in
whole structure, and in the future Inter Stellar company should be focus on improving
purchasing of raw materials, finding new transportation possibilities and new partners and
improving productivity. All other costs will be about 9 percents of whole unit's production
costs.
Page 47
Projected production capacity and all the production (including logistis) costs of first
production line for first 5 years:
units produced
transport
wage
raw materials
other production costs
equipment maintenance
production administrating costs
energy consumption
total
2017
500,000
120,000
115,288
394,312
21,000
10,000
13,900
20,500
695,000
2018
525,000
117,000
115,288
376,568
21,420
10,200
14,178
20,910
675,564
2019
551,250
114,075
115,288
359,623
21,848
10,404
14,462
21,328
657,028
2020
578,813
111,223
115,288
343,440
22,285
10,612
14,751
21,755
639,354
2021
607,753
108,443
115,288
327,985
22,731
10,824
15,046
22,190
622,506
index of target
grow
5.00
-2.50
0.00
-4.50
2.00
2.00
2.00
2.00
After the first year company will focus on increasing of productivity level and decreasing
production and logistics costs:
Transportation costs will be reduced by 2.5 percent each year by finding new
transportation possibilities, new partners and by signing long-term contracts;
Wage costs should stay on the same level, because it is possible in the future to
waive contractor, but split his wage for other employees to maintain high staff
motivation;
Raw materials costs will be reduced by 4.5 percent each year by improving
purchasing of raw materials on signing long-term contracts, finding new partners
and etc;
All other costs should increase by 2 percents each year considering current
inflation rate.
Please pay attention that all the calculations in this chapter are done for one
production line only to show the structure of production costs and to reflect
possibilities of productivity and processes in the Company. First production line (in
conditions shown on this chapter) will be assembled to assure smooth entrance of
innovative and ground-braking product into the market.
Page 48
It is clear that Inter Stellar company is right now and will be ready to respond to any
market demand.
Page 49
Mission statement
To achieve the visions we need to increase the sales, reduce the cost of manufacturing, try to
create better composites that will do the job of beuty and elegance, develop our IT team that
will plant the seed for our future of A.I and software updates. To hit northern America we
must conquer and develop stable business in European enviorment. We can follow Ikea model
to reach there.
Goals/objectives
Short term goals are ;
Action plan
Please note: This table does not include sustainability milestones as they are listed in the
sustainability section above.
Milestone
Date of
expected
completion
Person
responsible
10 weeks
[Manufacturing,
Desing,
14 weeks
[Marketing and
Finance]
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Milestone
Date of
expected
completion
20 weeks
30 weeks
Page 51
Person
responsible
Ceo,
Manufacturing,
Logistics