Sample Manufacturing Business Plan

1.0 EXECUTIVE SUMMARY

1.1 The Company

Gibsons Inc. is a start-up company that designs molds and prototypes for manufacturers in
the production industry. Our products will help the manufacturers in fabricating consumer products.
The company has developed a revolutionary software for design; Vitro Digital Design (VDD) which
has a patent. Our plan at this initial stage is to create a manufacturing facility for molds and
prototypes for our clients. Our business will be customer-focused, and we aim to provide them with
superior quality, unrivaled customer service, and competitive prices.

1.2 Products and services

Gibsons Inc. will utilize the Vitro Digital Design (VDD) to design and manufacture the molds
and prototypes. We plan to involve our customers in all the stages of design to ensure that the final
product meets their needs. It will enable us to reduce flaws and errors in our designs by detecting
them early enough. We intend to position ourselves as a forward-thinking and customer-focused
company that invests and adopts new technologies and ideas. These initiatives will hopefully put us
a step ahead of our competitors.

With the help of our sophisticated technologies, a unique software and efficient processes,
we will compete on quality and price. The software is a great advantage we have in the industry.

1.3 Market Analysis

A substantial portion of United States' GDP is made up of the manufacturing industry. The
mold and prototypes sector generates annual sales of more than $4 billion. The economy of the
country, therefore, relies on it for growth. Within this industry, we have identified two markets that
are strong and with great potential for growth. These are the medical equipment and automotive

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parts manufacturing. From our market research, we realized that the auto-makers continually
respond to their customers' changing demands by making cars that are fuel-efficient. The medical
industry also develops new technologies, thus the need to provide new parts with great designs
suited to the changes.

1.4 Strategy and Implementation

We will use the latest technologies in our facility to help us achieve our goals. We will keep
updating to catch up with our customers' varying demands. We will also implement operational
processes that are highly efficient and aimed at producing quality products. We intend to use an
aggressive marketing of the company and our unique software; VDD using a targeted marketing
strategy.

We will use direct mail, online and print advertising as well as attending relevant trade expos
and shows.

1.5 Management

Our management team currently has a president, Gibson Bird, Vice President John Truman
and Operations Manager Wilson Cousin. We intend to add more key positions which include
Finance, Sales and Marketing, human resource and IT managers.

1.6 Financial Plan

Our revenues will come from selling manufactured molds and the design services we will offer.
From our financial analysis, we look forward to attaining a profit margin on 63% by the middle of
2016. We expect to achieve break-even point by making sales of $ 577,800 which will see us reach
profitability before the end of the third year.

1.7 Sources and use of funds

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 Gibsons Inc. has raised $ 200,000 in venture capital funds. The co-owners; Gibson Bird,
John Truman, and Wilson Cousin have also invested a total of $450,000 into the company. The
company requires an additional $2,950,000 to launch. The company is at advanced stages of
negotiating for funds from investors and other agencies.

We will use the funds to cover build-out costs, the facility, software, equipment, utilities and
other initial operating costs.

2.0 THE COMPANY

2.1 Company and Industry.

Gibsons Inc. is in Tinedad, Washington. We will design and manufacture molds and
prototypes that manufacturers use in metal casting and forming different materials such as rubber,
plastic or glass. We will operate within the manufacturing industry and have a NIES Code 390278
classification.

2.2 Ownership

Gibsons Inc. will be co-owned by partners who have equal shares. The partners include
Gibson Bird, John Truman, and Wilson Cousin. The company was formally incorporated in Tinedad
in January 2015.

2.3 Company History

Gibsons Inc. is a new company that will quality molds and prototypes using the latest
technologies in design. The company will also employ the use of high-tech machines and e-
commerce technology with innovative operational processes. The company's co-owners have a
combined experience of over 45 years both in the manufacturing industry and software development.
The creation of Gibsons Inc. came as a result of recognizing the need to add value to the customers
and to change their experience for the best.

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 2.4 Facilities

The company is presently operating from temporary offices at the Tinedad business center.
We are in talks to lease a facility in the city which will also be our manufacturing unit. We have
identified the industrial space that will accommodate engineering and product development. The
proposed space will also have a mold shop, administrative offices, and a quality assurance area.

2.5 Key Assets

The Vitro Digital Design is our greatest innovation. The software allows for real-time design,
with the customers getting an opportunity to work with our design engineers. It will enable us to
have a wider coverage of the target market and do deliver according to our clients' needs.

3.0 PRODUCTS AND SERVICES

3.1 Description

Gibsons Inc. will make molds and prototypes that companies will use in the manufacture of
consumer products. A mold has steel and aluminum components and gives shape to a product when
it is still in a liquid state. Manufacturers of plastic, glass, metal products use it.

Our molds will undergo three stages of manufacturing: our engineers will first work on the
design. They will work with the clients should there be a need. The engineers will then inspect the
molds and test them to ensure quality. We will then use precision machines to manufacture the
molds in order to get the desired results.

3.2 Features and Benefits.

Our unique design software will be a difference from our competitors. Once we acquire a

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client's attention, they will experience our unrivaled customer care and exceptional quality and fair
pricing.

Unlike our competitors who list cheap pricing at the top of their mission statement, Gibsons
Inc. will focus on quality using the latest technologies. We will ensure we deliver beyond our
customers' expectations and help them save money while getting quality products.

3.3 Competition

Our primary competitors are companies that provide mold-making and design services similar
to ours. Our list of competitors is long and are at and advantage of having an established customer
base.

Even though most of these companies have injection machinery that they can use to
manufacture the actual products, a majority is not taking full advantage of latest technologies.
Furthermore, they do not use the modern operating processes making their customers bear the
burden of overhead costs and longer turnarounds.

3.4 Competitive Advantage

Gibsons Inc. will maintain competitive pricing and quality products with the help of their
latest innovative technologies and operation processes. Our efficiencies in technology and
operations will give us an edge with speed, cost, and design. We hope to define ourselves with these
advantages as the leading mold maker in the industry. Moreover, the Virtual Design Center is
patented, and the competitors will not be able to acquire it from us.

3.5 Development

We intend to expand and create another manufacturing facility for an injection mold. It is a plan for
the future when the company shall have grown and can control all its operations from design to the

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final stage. We will also stay updated with the trends in technology and upgraded our machines and
equipment as needed.

4.0 MARKET ANALYSIS

4.1 Market Size

There are over 300,000 manufacturing companies in the United States. Their annual sales
combined totals to about $4.5 trillion. The mold manufacturers, on the other hand, are over 3,000
with combined sales totaling to over $6 billion. Gibsons Inc. aims to capture a portion of these sales
by utilizing a targeted approach that pursues definable segments of the market.

4.2 Target Customer

As stated earlier, our initial market target will be medical equipment and automotive
industries. These markets are distinct and with different requirements. The purchasing decision in
the car industry is driven by price while the medical equipment industry's focus is on quality and
speed of delivery.

4.3 Trends

The automotive industry has about 250 companies within the manufacturing sector, bringing
in a revenue of about $400 billion. A few major players may swallow the sales, but there is need to
manufacture various parts for each vehicle. It will give us a niche in this market. Our specialization
in molds makes us well-suited to answer to increasing demands for vehicle parts.

The medical equipment industry is ever-evolving. There are always researchers trying to
improve the procedures or the products. This constant product change calls for new molds. The
technological advances in this industry gives us the confidence that it is a potential market for
Gibsons' products.

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4.4 SWOT Analysis

Strengths

 Gibson's potential for local and global customer base.

 We have the expertise in software development.

 Our patented software.

 We have the expertise in production and manufacturing.

 Deep understanding of emerging technologies.

 Competitively priced products.

 Target market understanding.

 Unrivaled customer service.

Weaknesses

 The company has no history.

 Narrow customer base.

 New employees.

Opportunities

 We are introducing a new technology into the manufacturing industry.

 We have a chance to build a reputation.

 We are bringing new talents on board.

 Our technology brings into the industry innovations and applications.

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Threats

 The competitors could develop new technologies.

 Unprecedented fluctuations in market demand.

 Acquiring and retaining talented staff members.

5.0 STRATEGY AND IMPLEMENTATION

5.1 Philosophy

Our business philosophy is to prioritize our customers' needs in all our activities. Our
mission is to give them products of superior quality, fast turnaround, and unrivaled customer care.
With our leading design technology and new facilities, we look forward to leading the industry in
providing exceptional services.

Implementation of this plan will be helpful in achieving our goal of leading the industry. We
will invest in the latest precision machinery once our manufacturing facility is ready. We will also set
the highest quality control standards and use a comprehensive software in design.

5.2 Internet Strategy

Gibsons Inc. has positioned itself from the beginning as a company driven by technology. We
intend to continue with this. We have contacted a web-designing firm and have secured a domain
name for our premier website; www.gibmolds.com. We are in the process of integrating our design
technology into the website.

The website will feature our success stories and the images of our products. It will also be
our interaction site with our clients. They will ask questions and state their preferences to which
our customer care team will promptly respond.

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 5.3 Marketing Strategy

Gibsons Inc. recognizes the critical role played by marketing. Our sales and marketing team
is working on an extensive marketing plan that will ensure our products penetrate the market. A
public relations firm has been hired to help the company set up a competent marketing department.

Gibsons Inc. will appeal to clients based on its quality services, unrivaled customer service,
and fast turnaround. We will also position ourselves as the market leaders in integrating technology
into the manufacturing of molds.

We have a publicity campaign as part of our marketing plans that will be used to introduce
the company and the Vitro Digital Design. Later, we will launch adverts in publications that deal
with automotive manufacturing and medical equipment. We will also send our targeted customers
direct e-mails as a means of getting closer to them.

We will also attend trade shows and expos as a way of getting our products out to the
market. We will carry our promotional items and marketing materials to these shows.

To create even more awareness of the company locally, we will organize and participate in
charity events that aim at addressing different courses. Gibsons will also liaise with local institutions
to offer internships and training to students.

5.4 Sales Strategy

Gibsons Inc. intends to have a focused sales team that will help secure and maintain
relationships and businesses. The team will be highly motivated with performance-based
commissions and bonuses. We intend to bring one of the outside sales personnel into the company.
The staff will be trained to handle customer service duties. The sales team will help to secure deals
and attend expos as well as get referrals.

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 5.5 Strategic Alliance

We intend to build relationships and form alliances with both local and regional companies
providing injection-molding manufacturers. We have already secured one with Weedern Ltd, which
is in Linton county. We are in talks with more companies.

5.6 Operations

The plant facilities that we have acquired will be used proportionately to serve all the
company's needs for the time being. We will have laboratories, shops (for tools and molds), testing
and control area, storage and administrative offices.

We will have trained staff in all the areas. The administrative offices will have space for the
marketing and sales, IT, maintenance, human resource and the executive.

To enable ease of operations, we will require the following equipment and software:

Machines

 Spider, LSA 7500 & LSA 4000.

 Evden270, Evden444 & Evden600V.

 Vintage, Titan, and Maxim.

 RVT Tooling.

Software

 LiquidWorks.

 Turfcom.

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  AutoCAD

Gibsons Inc. will ensure cost control and quality by utilizing the latest software and precision
machinery. We also hope to be ISO 9001-2000 certified once we are operational. We will follow the
medical standards to ensure our products are quality.

Our knowledge and expertise in the manufacturing industry is our strength. We have
identified the assets that we have and those that we intend to add. We will also add more staff to
our managerial team that will help us achieve our ambitious expectations.

5.7 Goals

We have laid a list of goals and milestones that we hope to accomplish in the next five years:
 Secure enough funds for the start up
 Build suitable manufacturing facilities.
 Purchase equipment, machinery and supplies.
 Hire talented staff.
 Open shops to get our products into the market.
 Target and penetrate the market.
 Achieve sales goals.
 Become a value-adding company with customers at the center of all activities.

Our priority goal at the moment is to secure enough funds for the start-up. Gibsons will
establish itself as a leading service provider in the industry.

5.8 Exit Strategy

In case the management, partners or investors seek an exit from the company, we will be
ready to pursue various options. We would favor selling the company to a manufacturing company
dealing in related products. Once we are well-established, we would also explore other strategies.

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6.0 MANAGEMENT STRUCTURE
6.1 Organizational Structure
At Gibsons Inc., we understand the importance of an enthusiastic and loyal team to increase
productivity and reduce turnover. The management of the company encourages mutual respect and
responsibility. We will present our employees with an atmosphere of open communication and
genuine appreciation.
6.2 Leadership
The company will be managed by the President Gibson Bird, with assistance from the other
executive staff members; Wilson Cousin and John Truman. The company will establish a board of
directors to oversee its general running.
As stated earlier, we will bring in more talent into our team. These will include human resources,
finance, sales and marketing directors. There are several suitable candidates who have expressed
interest in joining our company.
At the beginning, we will fill the gaps in our management team before proceeding to mid-
level management and administrative personnel.
6.3 Advisors and Board Members
The board of directors will consist of the shareholders of the company, managers and officers
and will be chaired by President Gibson Bird. The board will among other roles handle:
 Appointment and review of employees' performance.
 Establishment of objectives and policies for the company.
 Ensuring there is sufficient finance and drafting and approving budgets annually.
 Being accountable for the performance of the company at all times.

The company will also appoint professionals such as accountants, lawyers and players in the
automotive and medical equipment industries to join the board of directors.

7.0 FINANCIAL PLAN

7.1 Requirements
Gibsons Inc. needs $4,450,000 to start up. The company is lobbying for funds from investors
and seeking partnerships with related companies. We are also in the process of negotiating for
business loans besides exploring other financial options.

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 Currently, the company has raised $500,000 and are seeking the remaining funds to kick off
its operations. We have raised $200,000 from venture capital while the three principles have each
invested $150,000.
7.2 Use of Funds
The funds raised for start-up will be used in covering the operating costs, taxes, payroll and
other utilities. We will also purchase equipment, software and machinery with the funds. About 40%
of the funds will go to assets while the other 60% will go to operational costs.
7.3 Income Statement Projections
We have attached an income statement that clearly demonstrate our ability to earn
profitability within the projected time. The company projects a gross profit margin of 72%. By the
fifth year, we will have an average of $75,075 in net income while our monthly expenses will average
at $119, 456. We hope to achieve break-even point by the end of our third year in operation.
7.5 Balance Sheet
Our sources of capital will determine our balance sheet. We intend to raise over $ 2.5 million
through loans and another $1.8 million through equity capital. Our assets will consist of leasehold
improvements, cash, software, equipment, and tangible assets.
7.6 Assumptions
We base our projections on the current trends in the manufacturing industry and hoping that
they will continue. We hope that government and industry regulations will not interfere with our
business projections. However, we remain positive having seen no indications of any negative
interferences. Moreover, the company will not rely on any regulation or legislation to achieve its
projections.

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