Team Work: Opportunity Evaluation and Selection - Term Paper Example

Team Work Opportunity List The following is a list that the team populated as ideas that would be viable for the project: 1. patient-care assistance firm 2. sell tracking system for ultrasound transducers to be used as a training tool 3. Adapt cutting edge medical equipment to home use 4. Rental medical equipment 5. Provide hospitals and industries with a software that monitors all the equipment’s been used without the need of having someone there checking the device every day. Therefore, the software will be monitoring the functionality of the equipment 24/7. 6. Sublease unused hospital medical equipment when not in use 7. Create a website that will provide all software for students, professionals, and enterprises, such as Office, HFSS, Matlab, SolidWorks, etc. for a little low quote and fully unlimited license. 8. Web host to keep encrypted medical records so that they are accessible worldwide 9. Create custom phone apps for individual people and companies. 10. A health insurance co-op to get health insurance benefits of a large company to an individual 11. Refurbish medical equipment and sell needy medical establishments 12. Establish and maintain a data base of quality medical professionals 13. Create an integrated internet based query of emergency departments to reduce wait times 14. Create a company to help startups lessen the strain of FDA approval 15. Create a drug recycling company 16. Distribute unused drugs expired equipment to third world countries 17. Medical equipment maintenance company 18. Create a company that upgrades current medical equipment 19. Create a website that encourages competition among medical providers 20. Using AzTechnology “Fuel-Cell Based True Uninterruptible Power Supply for DC powered Devices” this technology can be incorporated to hospitals for medical devices or private practitioners that use medical devices as a power back-up equipment. This technology will be useful for third world countries such as Haiti. 21. Living System Home for elderly people 22. Buy confiscated cars to the State before they go in auction, and repair them for purpose of selling them to a really considerable price 23. Primary or preventative care for automobiles 24. Using multi-touch technology to be applied to a retail company to show inventory of the product without the need that physically show it. This will elude the need of shoplifting 25. Medical Equipment repair 26. Using Volkswagen technology safety to be incorporated to home security. 27. sell/run program for I pad/Tablets that allows waitresses to send orders directly to kitchen staff instead of physically giving it to them 28. lemonade stand 29. candy stand 30. invest in franchises 31. used furniture store 32. sell games for smart phone 33. auto detailing company 34. sell CPR training dummies that give electronic feedback for if one is doing compressions correctly 35. Create a website to automatically translate websites, making for a truly world wide web 36. Pet rental company 37. Start a club 38. Private personal webpage to manage your email and social media similar to a phone that is accessible anywhere 39. Some who hunts wild cats and sells them for food 40. Assisted living firm 41. Health insurance discounts based on health. 42. Create an assisted living apartment complex with more freedom than normal assisted living facilities. 43. A website/phone app to quickly estimate the necessity to call EMS or go to the hospital by one’s own means 44. Buy/sell used books 45. Start an insurance company based on keeping people healthy not curing the sick 46. Cooking home food (breakfast, lunch, and dinner) to deliver to students or people that are really busy that cannot cook or get food at all 47. Create a hospital that is accessible by only private means no government services, a truly private hospital 48. Provide International Students with a database that will give them the facility of finding jobs or companies that sponsored H1 visas. Making a career fest or making such a thing as ASU Sun devils career for international Students 49. Repair and service computers 50. Roast maize After a rigorous exercise of discussion and weighting the ideas, the team decided that the top tem ideas were the most viable (in bold). The following reasons were given as supporting evidence to the chosen ventures. Opportunity Evaluation and Selection Opportunity analysis framework The following steps were conducted to get the best opportunities for the product. The aim was to come up with a balanced marketing opportunity which took into consideration the needs of the customer, the company, technology as well as the competition by other manufacturers. An analysis spreadsheet Figure 1: Idea analysis graph Rate the opportunities using the framework you have developed 1. patient-care assistance firm 2. sell tracking system for ultrasound transducers to be used as a training tool 3. Adapt cutting edge medical equipment to home use 4. Rental medical equipment 5. Provide hospitals and industries with a software that monitors all the equipment’s been used without the need of having someone there checking the device every day. Therefore, the software will be monitoring the functionality of the equipment 24/7. 6. Sublease unused hospital medical equipment when not in use 7. Create a website that will provide all software for students, professionals, and enterprises, such as Office, HFSS, Matlab, SolidWorks, etc. for a little low quote and fully unlimited license 8. Web host to keep encrypted medical records so that they are accessible worldwide 9. Create custom phone apps for individual people and companies 10. A health insurance co-op to get health insurance benefits of a large company to an individual Abstract The medical field is one of the most lucrative areas in business. In the efforts of remaining healthy, the community usually concentrates on services from various sources associated with the medical field to meet their needs. The customer requires services that are effective, safe, updated and fitting to their problem. This is one of the reasons why the patients care assistance firm idea is useful in entrepreneurship. There is a huge gap between the public and private sectors in medicine, in cost, services and efficacy among others. The gap that lies in between the two sectors is usually the patient care services offered. To fill in the gap between the two sectors, ideas such as this venture can proper and aid the health sector in ensuring that health services are adequately offered to the community at large. Our idea in the patient care field is provision of radio therapeutic solutions. Radiography is a service that isusually associated with major health centers, but with this idea, the service can be introduced to clinics ranked low. The killer features of this product include simplicity of the design, portability, cost effectiveness, operation ease and a long lifespan. The design of this product is ergonometric and aimed at reducing the costs associated with the patient care filed. The team involved in developing the product is comprised of experts of different medical and engineering fields, with the understanding of the principles behind the product. All the members have entrepreneurial expertise and thus contribute greatly towards the market needs and strategies of meeting them (Kyle 123). Team Exercise: Elevator Pitch Good day Sir / Madam, in these economic times, it is necessary to save the much you can. Introducing our new ultrasound tracking system is one of the recommendable methods of making savings. The technology used in the design of the system ensures remarkable results in terms of imagery, precision and effectiveness in the ultrasound industry. The essence of the design is minimizing the risk posed by errors in ultrasounds. By expediting the diagnosis, the erroneous tendencies are eliminated. The system is designed to create a win-win situation for both the customers and the patients by reducing the costs of expensive machinery as well as improving the quality of services. Thank you for your time. Team Exercise: Sunflower The sunflower business model follows these principles: a) Core competency at the centre: skills, market, and opportunity b) The products and services provided by the company as petals branching out from the core: product, consultancy, advice, maintenance and repairs. c) Assumptions and driving forces for the venture as the stem of the flower. Figure 2: Sunflower Model (Fleisher and Babette 271) The core competencies of the group include: Technical expertise Loyalty Entrepreneurial skills and spirit Available market The products that are to be offered: The Ultrasound Transducer Tracking System UTTS spare parts and accessories UTTS training and mentorship The assumptions or driving forces of the program include: High costs of alternative technology A deficiency of ultrasound products in the market A huge market for the technology Sales Pipelining Value Proposition The following is a combination of the factors and their effect on the program, comprising a value proposition. Customer Partner Supplier OB-GYN Echo Technicians Veterinarians Ultrasound Schools Radiographers CV Sales Medtronic Radiological Society of North America Logitech Lab View Philips Medical Revenue ^ ^ ^ - ^ ^ ^ ^ ^ ^ ^ Cost & Expenses           -Cost of Goods Sold v v v ^ v - - - - - - -Marketing & Sales - - - - - ^ ^ v ^ ^ ^ -Research & Development - - - ^ - v v v v v ^ -General & Administrative - - - - - - - - - - - Total Cost & Expenses v v v v v v v ^ ^ v ^ Operating Income ^ ^ ^ ^ ^ ^ v ^ v ^ v Interest ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Net Income Before Tax ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Taxes ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Net Income (Profit) ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Team Exercise: Technology Roadmap Market Our market will mainly be any clinics with a radiology department, hospitals, and ultrasound training schools. These are all areas where ultrasound transducers are used and they are places where a tracking system would be useful. Products/Services Our business is selling this one product and repairing it if necessary. Technologies Our business will require these items to be combined in a unique way in order build our product (Schnaars 291). Research and Development All of these items must be researched thoroughly before the product can be completed. With the entire appropriate materials product testing can be done much earlier than shown, however. Team Exercise: Value Network Model Figure 3: Value Network Model Team Exercise: Product Data Sheet in the medical field, imaging is required for several diagnosis procedures. Some of the technologies developed for the purpose are harmful and discouraged, while others are newer and safer. The ultrasound technology presents the latest addition to the imagery department. The ultrasound technology provides the medical fraternity with a cheap way of diagnosis­. It is cheap and it is used in a non intrusive method that is useful to both the medical team and the patients, since the risks involved are extremely low (Fleisher and Babette 221). The largest challenge to the technology lies in the errors that are prone to the design of the devices since the results of the scanning often show cases of erroneous imagery. This design is meant to eliminate such a problem through repeated scanning. Another problem that faces the use of ultrasound technology is the undertrained staff, especially with associations to more complicated designs of the ultrasound systems. This proneness to errors result to reduced efficiency in working and a reduction in the quality associated with the technology. The design of most machines may not take into consideration these elements or error associated with a more efficient training system and a method to ensure proper transducer position, orientation and pressure, imaging diagnostics could become significantly more accurate and precise. For this project, a camera based positioning system will be used in conjunction with LabView to verify and guarantee correct transducer placement. More specifically, the camera will help establish a set coordinate system and verify the transducer’s spatial rotation, allowing one to represent the entire scanning procedure in a virtual program. This can potentially lower the cost of training technicians, while also increasing the quality of their scanning ability. The product will be called simply the Ultrasound Transducer Tracking System or UTTS for short. We believe that this product has potential to be sold to a variety of markets Figure 4: This figure shows a general layout of our desired product. Benefit Proposition Lower the risks involved in the patient care routines Produce high quality imaging Conduct diagnosis without intrusions into the patient. Key Business Goals Reduce the instances of erroneous imagery Produce high quality images Primary Market Echo technicians OB-GYN Radiologists Cardiologists Urologists Veterinarians Sonographers Secondary Market Researchers using ultrasound imaging Table 1: Market Opportunity Analysis The following table represents the product specifications of the product. Product Specifications Metric Units Ultrasound Position Tracking System Position Sensing Inches 0.004 Accuracy of Axis Degrees 0.15 User Interface 1-10: Easy-Hard 9 Affordable Cost US $ 1k+ Update Rate Hz Real Time Safety to User 1-10: Very Safe-Not Safe 1 Ease of Use 1-10: Easy-Hard 4 Lateral Stiffness of Mounting Equipment KN/m TBD Table 2: Product Specifications Dimensional Competitive Analysis Figure 5: Dimensional competitive spider matrix The figure above is a representation of a competitive analysis done in the market by examining the existing producers and their success in the market. The spider matrix method applied on the analysis allows comparison between some of the important characteristics of the product. The analysis is a basis by which the tea is to develop the product to gain a competitive edge over the existing designs. From the graph, in terms of performance, the greatest competitor is Toshiba and GE. The edge that our design is to incorporate in its design includes higher efficiency, speed, comfort and safety. Differentiation and Sustainable Competitive Advantage Differentiation Advantage To break into the market, it is essential that the product we have in mind is differentiated from other competitive products. Competitive Advantage The product presents competitive advantages in the form of: New cheaper technology Competitive price Ease of use Team Exercise: Organization Charts One Year Organization Chart After conceptualizing the idea, the team above shall be implemented in running the operations of the company. The team is composed of the major contributors to this program and due to challenges in capital and breaking into the market. A lot of investments are not available for the venture. 3 Year Organization Chart Three years in production, the organization structure of the team shall be changed to accommodate and adapt to change brought about by expansion. Lastra, A. shall take over the CFO position that was held by Sanchez, D, J, after Sanchez being promoted to the CEO of the organization. This restructuring shall create two opportunities in the hierarchy: VP Marketing: this position shall be advocated for an expert in the market and the capabilities of ensuring critical mass sales of our product. Sales Team: the company will need a sales team that will be in charge of ensuring that products are sold through the market. The team shall be selected by a panel of the CEO, CFO and the VP marketing, 5 Year Organization Chart After 5 years in the market, the company shall need more experienced guidance. The founding members shall move into the product development sector and professional leadership employed in the operations of the company. CEO – the team shall recruit an experienced CEO who has proven successful with small and upcoming companies, preferably in the medical field. CFO – an individual with experience with financial control shall be employed to handle the finances of the company. Maintenance/Training – This department will be a new addition to the company, it will focus on sales of our product and new products in various capacities and quantities. They will teach people how to use it and how to instruct people to use it. They will also maintain the equipment that we sell. Dream List of Advisors and Directors Dream List of Directors and Advisors Board of Directors - Arlana Franklin has experience in running a company that sells and services ultrasound equipment. She has a deep knowledge of the industry and equipment. - Ken Kelly MD, is the Director of ultrasound training at University of California, Davis School of Medicine. He knows what is fully needed to educate for ultrasound equipment. - Pamela Boyers PhD., is the director of Medical education for OhioHealth. He knows the education needed for a major medical company. - Kevin R. Pullins R.D.C.S. is an ultrasound sonographer with over 20 years of experience and an entrepreneur. He would be helpful in the company development and product development. Board of Advisors - Dan O’Neil, He will be helpful as he has a great deal of entrepreneurial experience. - Tomo Hasegawa, is currently the director of medical equipment at Toshiba, he has a vast knowledge of the medical imaging market. - Ulrike Hamper M.D., is the director of Ultrasound medicine at John Hopkins University. He has vast knowledge and experience with ultrasound technology. - Dr. Bill Clarke, is the Medical and Technology Officer at GE. - John White, Founder and director of SoundVision an ultrasound equipment sales company. - Christy K. Holland Ph.D., the director of the Ultrasound Research Laboratory at the University of Cincinnati. - Michael J. Black Ph.D., he has researched extensively into optical tracking, the same method we are using to track our ultrasound transducer. Legal Plan Our IP strategy involves in-depth research into similar products. More specifically, we have done diligent research to ensure that we were in fact creating a product that could be patented. Four main product standards were found regarding ultrasounds using the FDA Medical Device Database. Research for this topic was done by each group member. After we compiled the each of our findings and created the following list of relevant standards: Recognition Number 12-66: AIUM MUS, Medical Ultrasound Safety Recognition Number 12-139: AIUM AOMS-2004, Acoustic Output Measurement Standard for Diagnostic Ultrasound Equipment Recognition Number 12-140: AIUM RTD1-2004, Standard for Real-Time Display of Thermal and Mechanical Acoustic Output Indices on Diagnostic Ultrasound Equipment Revision 1 Recognition Number 12-105: NEMA UD 2-2004, Acoustic Output Measurement Standard for Diagnostic Ultrasound Equipment Version After completing our research we determined that our product is indeed unique. As such, we intend to pursue getting our product patented in order to protect our intellectual property. In addition to that, we will follow regulations set by the FDA to further protect our product. Since we are building a medical device we had to classify our product according to FDA regulations. According to the FDA, a class 1 device “presents minimal potential harm to the user”. Our product actually has no contact with patients and has no more contact with the user than any other computer. As such, our product would be classified as a Class 1 device. In addition to that, cameras and accessories used for surgical purposes are qualified according to the FDA, as a 510(K) Exempt Device. Our corporate form will begin as a Limited Liability Corporation. Since we are starting a small business and are all in the same field of expertise, we feel that this is the best option. Initially, we will be unable to sell much and rushing into a larger corporate structure will be detrimental to our limited resources. This will be difficult to start, but we have the expertise to be able to accomplish it. Employment agreements will be created according to an as needed basis. At the onset, our group will be able to handle market demands easily. As the company grows we will hire new employees as needed. When hired, the employees will always sign a Non-Disclosure/Confidentiality Agreement so that it can be guaranteed that they won’t disclose specified information to unauthorized persons or entities. Funding Plan While designing the company we discovered that our company is going to have a low startup cost I do believe we will be able to bootstrap it to the cash flow breakeven point (Smith and Cynthia 392). We have been working to develop our project and can now control it with the computer program that we created. In addition we also need a $100 web camera that we will be able to buy at a lower price in bulk. We will also need about 3 markers per transducer used this will come to about $10. So the entire package if we were to sell it today would cost $110 dollars. If this was the only cost we had to plan for we would be profitable very quickly, however we also have to factor in the cost of building the business. We estimate it to be approximately $10,000 to start delivering our project. We believe with proper marketing we could be profitable within a year. With our current single product business plan our business could become profitable and grow with just bootstrapping, however once our business establishes our current product in the market we will be looking to expand our business with additional products. At that point it may become necessary for our product to continue to grow rapidly to take on investors. We believe that our company can be successful and grow with only a small investment. If this investment was to come too early in our company’s development once the company becomes large a big percentage of the company will be owned by an investor, and this is not what we want. Our company is going to initially avoid funding from venture capitalist and angel investors. We will fund it ourselves, and with the help of family and friends. Our goal is to bootstrap the company by our own means. This will include using savings that the group members have acquired and possibly taking on side jobs. It may also require us to take out personal loans. Whatever we use will be helpful in the long run for developing our company. We would like to control the majority of our company to either make more of a profit on more likely to have more leverage when we take on investors when we expand our business. We would also be interested in a SBIR grant, our company is planning to produce and sells an innovative technology, and the grant would really help to develop the business. However we are also prepared to support our company by our own means if necessary. Executive Summary Ultrasound imaging is an affordable way to image noninvasively. Compared to MRI, CT, and X-ray, it is certain more affordable and can offer vast capabilities that others cannot. On top of these positives, it is safe, which means zero radiation exposure. But, due to its unfamiliar techniques, the technicians that are employed are typically under trained. For this project, a camera based positioning system will be used in conjunction with LabView to verify and guarantee correct transducer placement. More specifically, the camera will help establish a set coordinate system and will verify the transducer’s spatial rotation, allowing one to represent the entire scanning procedure in a virtual program. This can potentially lower the cost of training technicians, while also increasing the quality of their scanning ability. The current design utilizes a LifeCam HD webcam in conjunction with a LabView program to do all that is necessary. With this product we believe that we can obtain a strong foothold in a large market. The product will be called simply the Ultrasound Transducer Tracking System or UTTS for short.A general overview of our design concept is summarized in Table 1 below. Mission Statement: To improve ultrasound technology and eliminate human error through careful design. Product Description A device that will track the rotation and position of an ultrasound transducer during examinations. The device will give user feedback so that one may quickly find the same positions later during repeat examinations. Benefit Proposition Allows user to quickly find desired transducer focal points during repeat examinations Can be used to help train new ultrasound users/technicians Reduce the number of injuries particularly carpal tunnel because of reduced “search” time. Key Business Goals minimizes error in scanning and to improve the overall image quality to yield better diagnostics Primary Market Echo technicians OB-GYN Radiologists Cardiologists Urologists Veterinarians Sonographers Ultrasound Technician Schools Secondary Market Researchers using ultrasound imaging Management Team Derek Sanchez, Jason Garcia, Angel Lastra Competition Toshiba Medical, GE Medical, Siemens Table 3: This table shows a general overview of our project and is our final Product Vision description Final Pro-froma Financials Given the current market size we believe our initial net income will be minimal, while we attempt to expand knowledge of our product. However, due to the uniqueness of our product we are confident that the product will grow quickly. Current estimates show that a working prototype can be built with $200-$300. Our 5 year estimates were generated as shown in the tabulations below. Pro Forma Income Statements – Year 1   Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun                           Licenses $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $22,500 $22,500 $22,500 $22,500 $22,500 $10,000 Maintenance 8,125 9,375 10,625 11,875 13,125 14,375 15,625 30,000 44,375 58,750 73,125 87,500 Sales 13,125 14,375 15,625 16,875 18,125 19,375 38,125 52,500 66,875 81,250 95,625 97,500 Cost of Goods Sold 500 500 500 500 500 500 2,250 2,250 2,250 2,250 2,250 1,000 Gross Profit 12,625 13,875 15,125 16,375 17,625 18,875 35,875 50,250 64,625 79,000 93,375 96,500                           Raw material acquisition 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Assembly and calibration 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 Salaries 48,500 48,500 48,500 48,500 48,500 48,500 48,500 48,500 48,500 48,500 48,500 48,500 Selling Expense 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Office Expense 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 Other 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total SG & A Expense 91,700 91,700 91,700 91,700 91,700 91,700 91,700 91,700 91,700 91,700 91,700 91,700 Operating Profit (79,075) (77,825) (76,575) (75,325) (74,075) (72,825) (55,825) (41,450) (27,075) (12,700) 1,675 4,800                           Interest Income 0 2,361 2,077 1,796 1,515 1,238 965 685 473 314 208 155 Earnings Before Taxes (79,075) (75,464) (74,498) (73,529) (72,560) (71,587) (54,860) (40,765) (26,602) (12,386) 1,883 4,955 Income Taxes 0 0 0 0 0 0 0 0 0 0 659 1,734 Extraord. Item: Tax Refund 0 0 0 0 0 0 0 0 0 0 659 1,734 Net Income ($79,075) ($75,464) ($74,498) ($73,529) ($72,560) ($71,587) ($54,860) ($40,765) ($26,602) ($12,386) $1,883 $4,955 Pro Forma Income Statements – Years 1 - 5   Total Y1 Y2 Y3 Y4 Y5             Licenses $152,500 $150,000 $200,000 $250,000 $250,000 Maintenance 376,875 1,500,000 2,550,000 3,900,000 5,400,000 Sales 529,375 1,650,000 2,750,000 4,150,000 5,650,000 Cost of Goods Sold 15,250 15,000 20,000 25,000 25,000 Gross Profit 514,125 1,635,000 2,730,000 4,125,000 5,625,000             Raw material acquisition 120,000 24,000 24,000 24,000 24,000 Assembly and calibration 204,000 12,000 12,000 12,000 12,000 Salaries 582,000 611,100 641,655 673,738 707,425 Selling Expense 120,000 120,000 126,000 132,300 138,915 Office Expense 62,400 62,400 65,520 68,796 72,236 Other 12,000 12,000 12,600 13,230 13,892 Total SG & A Expense 1,100,400 841,500 881,775 924,064 968,468 Operating Profit (586,275) 793,500 1,848,225 3,200,936 4,656,532             Interest Income 11,787 1,981 30,213 79,228 167,624 Earnings Before Taxes (574,488) 795,481 1,878,438 3,280,164 4,824,157 Income Taxes 2,393 278,418 657,453 1,148,058 1,688,455 Extraord. Item: Tax Refund 2,393 201,071 0 0 0 Net Income ($574,488) $718,133 $1,220,985 $2,132,107 $3,135,702 Pro Forma Balance Sheets – Year 1   Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun                           Cash $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Marketable Securities 629,695 553,911 479,026 404,122 330,188 257,226 182,616 126,038 83,623 55,424 41,270 44,012 Accounts Receivable 16,480 16,800 17,188 18,563 19,938 21,313 41,938 57,750 73,563 89,375 105,188 107,250 Total Current Assets 671,175 595,711 521,214 447,685 375,125 303,539 249,553 208,788 182,186 169,799 171,457 176,262                           Total Assets $671,175 $595,711 $521,214 $447,685 $375,125 $303,539 $249,553 $208,788 $182,186 $169,799 $171,457 $176,262                           Accounts Payable 250 250 250 250 250 250 1,125 1,125 1,125 1,125 900 750 Total Current Liabilities 250 250 250 250 250 250 1,125 1,125 1,125 1,125 900 750                           Total Liabilities 250 250 250 250 250 250 1,125 1,125 1,125 1,125 900 750                           Retained Earnings (79,075) (154,539) (229,036) (302,565) (375,125) (446,711) (501,572) (542,337) (568,939) (581,326) (579,443) (574,488) Other Equity 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 Total Liabilities and Equity $671,175 $595,711 $521,214 $447,685 $375,125 $303,539 $249,553 $208,788 $182,186 $169,799 $171,457 $176,262  Pro Forma Balance Sheets – Years 0 - 5   Y0 Y1 Y2 Y3 Y4 Y5               Cash $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Marketable Securities 629,695 44,012 671,395 1,760,630 3,724,986 6,680,688 Accounts Receivable 16,480 107,250 198,000 330,000 498,000 678,000 Total Current Assets 671,175 176,262 894,395 2,115,630 4,247,986 7,383,688               Total Assets $671,175 $176,262 $894,395 $2,115,630 $4,247,986 $7,383,688               Accounts Payable 250 750 750 1,000 1,250 1,250 Total Current Liabilities 250 750 750 1,000 1,250 1,250               Total Liabilities 250 750 750 1,000 1,250 1,250               Retained Earnings (79,075) (574,488) 143,645 1,364,630 3,496,736 6,632,438 Other Equity 750,000 750,000 750,000 750,000 750,000 750,000 Total Liabilities and Equity $671,175 $176,262 $894,395 $2,115,630 $4,247,986 $7,383,688   Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun                           Operating Profit ($79,075) ($77,825) ($76,575) ($75,325) ($74,075) ($72,825) ($55,825) ($41,450) ($27,075) ($12,700) $1,675 $4,800 Cash Income Taxes 0 0 0 0 0 0 0 0 0 0 0 0 Funds From Opers. After Tax (79,075) (77,825) (76,575) (75,325) (74,075) (72,825) (55,825) (41,450) (27,075) (12,700) 1,675 4,800 Increm. Working Capital Invest. 41,230 320 388 1,375 1,375 1,375 19,750 15,813 15,813 15,813 16,038 2,213 Cash Flow From Operations ($120,305) ($78,145) ($76,963) ($76,700) ($75,450) ($74,200) ($75,575) ($57,263) ($42,888) ($28,513) ($14,363) $2,588                           Non Op Inc. (after tax) -1) 0 2,361 2,077 1,796 1,515 1,238 965 685 473 314 208 155 Investor(s) 750,000 0 0 0 0 0 0 0 0 0 0 0 Net Cash Flow $629,695 ($75,784) ($74,885) ($74,904) ($73,935) ($72,962) ($74,610) ($56,578) ($42,415) ($28,199) ($14,155) $2,742                           (1- After-tax interest income                         Pro Forma Cash Flow Statements – Year 1 Pro Forma Cash Flow Statements – Years 1 - 5   Total Y1 Y2 Y3 Y4 Y5             Operating Profit ($586,275) $793,500 $1,848,225 $3,200,936 $4,656,532 Cash Income Taxes 0 77,155 646,879 1,120,328 1,629,786 Funds From Opers. After Tax (586,275) 716,345 1,201,346 2,080,608 3,026,746 Increm. Working Capital Invest. 131,500 90,750 131,750 167,750 180,000 Cash Flow From Operations ($717,775) $625,595 $1,069,596 $1,912,858 $2,846,744             Non Op Inc. (after tax) -1) 11,787 1,788 19,638 51,498 108,956 Investor(s) 750,000 0 0 0 0 Net Cash Flow $44,012 $627,383 $1,089,235 $1,964,357 $2,955,702             (1- After-tax interest income )           Figure 6: Business trends References Fleisher, C, and Babette, B. Business and Competitive Analysis: Effective Application of New and Classic Methods. 1st ed. Hall, UK: FT Press, 2007. Print. Fleisher, C. S. and Babette Bensoussan. Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition. 1st ed. London: Prentice Hall, 2008. Print. Kyle, T. Small Business Ideas: 400 Latest & Greatest Small Business Ideas. Borehamwood, UK: The World’s Biggest Books. Print. Schnaars, S.P. Marketing Strategy: Customers and Competition. 2nd ed. New York: The Free Press, 1999. Print. Smith, D. G. and Cynthia, A. W. Business Organizations: Cases, Problems, and Case Studies. New York: Aspen Law & Business, 2004. Print. Read More