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Table of Contents 0


Executive Summary.... 1


General Company Description.... 2


Products and Services..... 3


Marketing Plan.... 4


Operational Plan...... 5


Management and Organization.. 6

VIII. Personal Financial Statement... 7


Startup Expenses and Capitalization.. 8


Financial Plan.... 11


Appendix....... 12


Refining the Plan... 13


International Business Project... 18

XIV. References. 20


Halo is a start-up mobile phone accessory corporation located in San Francisco, California. The
mission behind Halo is to take the basic uses of a smart phone and transfer it into the smallest
form possible. Basic phone functions connect to a finger ring via Bluetooth. Halos goal is to
reach a wide variety of customers in a number of countries with its easy use and comfort ability.
The company plans to build a substantial place in the international market due to the different
nature of the product.
The Company
Halo was integrated in the state of California. It is equally owned and managed by its four
partners: Hana Yoo, Jack Harris, Blaise Slattery, and Simran Bhagnari. The company plans to
open up a manufacturing plant and hire technological engineers.
Products and Services
Halo offers a smart phone accessory like no other and it is smaller than ever. Basic smartphone
functions such as phone calls, text messages, emails, snapchats, and other notifications are
connected to the ring via Bluetooth. It is similar to a paging device, but it provides a sleeker,
smaller, and lighter alternative.
The Market
The international smart phone industry has seen a boom in recent years after its initial
conception. Halo plans to be successful in its market due to the recent trend of smartphones and
smartphone accessories.
Halo will begin to set up operations by outsourcing with multiple international parties. A
manufacturing and shipping line will be required to be set up. Halo will employ engineers to
design and build the product. The founding four will operate sales and marketing responsibilities.
The marketing techniques of Halo will bring attention to the product and encourage an increase
in consumers. The main goal of Halo will be to target retailers and end consumers through
specific market research.
Halos goal is to create a successful and prosperous entity through its sales and margin growth.
Based on the companys technique, its success is dependent on how close it stays to its original
goals and strategies.


Halo is an upcoming business that will provide a high quality technical ring that provides a
variety of different features ranging from gathering notifications from a phone, a security system
and bluetooth. The business and product is hoping to be introduced soon, and is based in San
Francisco, California. Halo currently consists of 4 entrepreneurs, Hana Yoo, Jack Harries, Blaise
Slattery and Simran Bhagnari and is aiming to start up the business with the innovative product,
whilst hoping to expand to a range of different countries in the future to introduce new products
in the future. We will be targeting to a large audience, mainly adults, as they are familiar with
this type of product through a variety of marketing methods such as; social media, word of
mouth, TV ads and newspaper ads as these are the most effective ways to introduce the new
product. The crucial objectives of Halo is to run a profitable business, expand our business
organisation such as introducing new products to different countries in the future and build our
efficiency to increase Halos productivity. As a business, we are determined to become an
innovative and environmentally friendly business due to our substantial number of contacts, such
as Hana Bank. We believe that the unique features and system of our product will allow us to
strengthen our business and give us the opportunity to expand and succeed in the near future.

Halos mission statement is to expand the views of technology from a luxury to a commonality
by making the product available and economical to a wider target of people from the working,
middle and upper class in the United States.


Having a bulky iPhone that may be lost within your bag somewhere on a daily basis makes it
hard to keep track of the constant messages, calls, emails a customer receives. The upcoming
product, Halo is an accessible and aesthetically pleasing ring which notifies the customer who
purchases the product if they receive messages, calls, texts or even if they need a simple health
check. The ring not only allows you to receive messages, calls and texts through a system that
rings and vibrates through bluetooth, but it is also available to customers in three different colors,
Matte Black, Glossy Black and White as well as six sizes ranging from 6,7,8,9,10, and 11 to
make it accessible to everyone wanting to purchase the product. Halo is made to be accessible to
use, as it is connected to bluetooth on ones iPhone. Although we have competitors in the
existing market such Apple and Smartphone, we have designed our product to make it as
innovative as possible by adding outstanding features to the target audience. Halos initial
product price is currently at $100, however may increase due to expansion of product or business
in the near future. Additionally, cost of production is labeled as $35 per ring, which comes to an
estimate of $6,500,000 in the business.

Halo has come to a conclusion that marketing is a major factor during the process of starting up
the business and introducing the product to our main target market. In todays world, a wide
range of the audience uses technology as a way to continuously communicate with people and
get around on a daily basis. Halo has conducted a variety of primary and secondary research to
display the most effective way of promoting the upcoming product. Based on research we have
conducted from experience and online, articles show that 74% of adults use social media
networking websites. Since websites such as Facebook, Instagram, Twitter are used on a daily
basis everyday by a large audience, it is important that Halo gets involved and uses this as an
effective way to increase brand recognition as it is an accessible way to attract new and existing
customers. According to research found, newspaper ads are not as effective when promoting a
product unless it is completed more than once, which may increase costs in upcoming business.
Halo is aiming to attract a large target market by using effective marketing strategies, mainly
social media. According to research and statistics found, 92% of marketers stated that social
media is an important and effective marketing tool to use. Halo will receive more brand loyalty
by connecting with new and existing customers online by creating positive brand image and
name. Additionally, the effectiveness of social media will allow Halo to create a name and
presence for the business itself and allow customers to be aware of the business, leading to
further sales and expansion of the business in the near future. Due to the competition being quite
tough, we hope to increase our audience and convey a positive message to the audience we are
targeting about this innovative and upcoming product.


As a start-up company, Halo will network some of the production and workflow to outside
parties. Halo hopes to establish a trading company that will expand the production and
manufacturing outside of the United States. External sources will be used for warehouse
containment and distribution to retailers. Halo will hire independent designers and engineers to
produce the initial concept of the device. Our founding members will perform sales and
marketing strategies.

Once our product line is assembled, a sales team including customer service representatives,
order fulfillment, and a management office will be hired. Roughly one hundred personnel on the
factory floor will be required for operations to be completed. In addition, a location on the west
coast will be essential in relations with China. Being a company based in San Francisco, the
technological hub will provide for numerous advantages.


Professional and Advisory Support
Board of Directors

Simran Bhagnari
Jack Harris
Blaise Slattery
Hana Yoo
Management Advisory Board

Simran Bhagnari
Jack Harris
Blaise Slattery
Hana Yoo

Putnam Gordon from Putnam Gordon, P.C. law firm

Felicia Doubek
Insurance Agent
Samantha Tradelius from Commercial Coverage Insurance Agency
J.P. Morgan from JPMorgan Chase
Brian Gregg from McKinsey and Company Inc
Mentors and key advisors
Professor Susan Stryker from USF
Professor Timothy Tung from USF (Economics)
Assistant Professor Monika Hudson from USF (Entrepreneurship, Innovation, and Strategy)


Total of Assets: $500,000
Total of Liabilities: $80,000
Total Net Worth: $420,000
Total of Assets: $700,000
Total of Liabilities: $150,000
Total Net Worth: $550,000

Total of Assets: $500,000
Total of Liabilities: $35,000
Total Net Worth: $465,000

Total of Assets: $550,000
Total of Liabilities: $100,000
Total Net Worth: $450,000


The initial research stage of the project started with $20,000. The 4 members of the
founding team each chipped in $5,000 to begin processing our dream into a tangible idea. With
our first model of the product, we presented our project at a technology entrepreneurs event, and
was able to make deals with venture capital firms, Accel Partners and True Ventures. Each firm
individually offered to fund our company $2,000,000 for our early stage + startup + first stage of
our initial commercial manufacturing and sales in the U.S. market and China market. Each v.c.
firm will own 32% of the company, while the four co-founders own a total of 35.8% in 2016. If
we become successful, we may sell some of our ownership shares through stocks to our benefit.
Additionally, co-founder, Hana, who has networking connections with Hana Banks new
CEO, Ham Young Joo pitched the companys product value and interest in entering Asias tech
market; and in response, Hana Bank generously donated $1 million to Halo. With the investors
funds and donation, we immediately grew our startup business.
We plan to lease a factory space and office space with a budget between $1,000-$1,500.
We will use our own office equipment, and since we had previously owned the product
machinery for our first research, we consider them as our assets. We designed and bought our
logo, Halo, and will apply for our choice of business entity, C-Corporation. Then, we will build
our legal structure through consulting and buy insurance. To prepare for manufacturing, we plan
to spend around $3.5 million on wholesale electronics parts manufacturers for product materials
to create 100,000 rings, which will give us an estimate of $2 million profits if all 100,000 rings
are sold in 2016. We calculated $50,000 to use for marketing and advertising our product and we
intend and push strongly to direct our strategies on social media platforms because social media
creates trends and waves for new, better technology. An additional application service for our
wearable product is undergoing significant preparation, from planning to persuading one of our
computer science major and app creator, Ray Wang to join our company; as this is still a work in
progress, this factor wont be added to our startup expenses. Below is our companys current
startup numbers.





Hana Bank Donation


Office Equipment




Total Current Assets


Owners Investment














Accel Partners



True Ventures



Total Investment




Product Materials
(Including design)






Legal and Consulting


Business Entities




Brand Identity (Logo)


Factory Lease


Office Lease


Total Expenses




How Long Can

You Do



Contingency in
case of a

Equipment (IT

3 days

No schedule for
meetings, no
track orders,

power supply,

User paper
reports for 3
days, then go
manual for as
many members
as possible


0 days

No production,
potential for
bankruptcy, IT

Flood zone, poor

fire, water leak,
no perimeter
security, door
lock broken

Find a temporary
location for
office only- at
USF, No Plan B
for factory


0 days

Degraded, slow
operations, low
service levels

Too many SPOF

Use available
staff, hire temps

Raw Materials

25 days before
new deliveries

No materials for

Not enough

Search for


25 days in/2
days out

No supplies or

problems with
supplying to

Use personal


0 hours/power
0 hours/water

Increase in
waste, no
heat/AC, no
light, no water,
IT non-existent

Single power
feed, no backup
generator or
water supply



6 hours

No call center,
no supply,

with vendors

Set for
vendors ahead of





The figure above represents market research based on the amount of people who operate a
smartphone over a nine-year time span. As you can tell, the demand for smart phones in on the
rise. In light of this, smartphone accessories are updating in every way to encourage consumers
to maintain brand loyalty. However, there is no denying a possibility of a new mobile phone
technology that could surpass smartphones and overthrow the market. For the foreseeable future,
smartphones are the go-to-gadget and as they evolve constantly, so will the need for accessories.

As the usage of smart phones has grown exponentially in recent years, Bluetooth media has also
seen an increase. The rise of wireless technology has opened up a window for Bluetooth to
become a leading proponent in smartphone accessories. Accounting for a majority of the
accessory market, Bluetooth technology appears to be going up without a decrease in sight.



For Raising Capital
Funds needed short-term: $3,500,000-$4,000,000
Funds needed in two to five years: five years = approximately $17,500,000
How the company will use the funds: Manufacturing and Sales; Using most of the funds on these
two areas will help the business increase in profits.
Estimated return on investment:


Exit strategies:
Develop the firm to a level that it will be taken over by a larger organization sometime in the
Take the firm public with an initial public offering (IPO) of stock.
The managers who wish to stay in the business take over the investors with replacement capital
from other sources of investment or from the businesss profits.
Merger or acquisition Organization from other parts of the world could buy the venture.
Percent of ownership that you will give up to investors: 1st year - 32% ownership each to Accel
Partners and True Ventures
Milestones or conditions that you will accept:
Keep production costs below $3,500,000
Require profits $6,500,000
Financial reporting to be provided (quarterly):

1. A balance sheet (assets, liabilities, and ownership equity)

2. An income statement (income, statement of revenue & expense, P&L or profit and loss report,
company's income, expenses, and profits)
3. A statement of changes in equity
4. A cash flow statement (company's cash flow activities)
Involvement of investors on the board or in management: Ryan Sweeny from Accel Partners,
Puneet Agarwal from True Ventures


Planned production levels:
1st year - 100,000 rings
2nd year - 250,000
3rd year - 500,000
5th year - 1,000,000
7th year - 2,000,000
Anticipated levels of direct production costs and indirect (overhead) costshow do these
compare to industry averages (if available)?: Direct production costs - $35, Indirect costs
(machinery, design) - $25~$35
Prices per product line: $100 per ring
Gross profit margin, overall and for each product line: Gross Profit Margin = (Net Sales - Cost of
Goods Sold) Net Sales -> (6,500,000 - 3,500,000) 6,500,000 = 46%
Production/capacity limits of planned
physical plant/Production/capacity limits of

Purchasing and inventory management procedures: Purchase inventory through a number of

vendors assigned for various device parts
New products under development or anticipated to come online after startup: Halo app


High Technology Companies

Economic outlook for the industry: Strong outlook due to the significant increase in peoples
usage of tech devices

Will the company have information systems in place

to manage rapidly changing prices, costs, and markets?

Yes, information systems will be in place, as it is essential for a tech business.

Will you be on the cutting edge with your products and services?

Yes, rings are the uncommon, wearable tech product that hasnt been widely released/known to
the general public.
What is the status of research and development?

Intermediate stage. We have the materials and equipment to build the ring, however, we are still
in the process of finalizing our best functions and efficient design for our product through
massive research.
And what is required to:
Bring product/service to market?

Product shipment to retailers, e-commerce, and our own brand website


Keep the company competitive?


Company is already competitive because the tech industry is a competitive market. Nonetheless,
we need to keep creating the best, new, and beneficial product that everyone will want to buy and
not regret buying it.
How does the company:
Protect intellectual property?

Invest in well-written non-disclosure agreements (NDAs) right away.

Apply for utility patents, design patent, and logo patent.
Work with an attorney who specializes in intellectual property and ask for a fixed rate to file.

(Save money by working with a patent attorney from a different geography.)

Conduct an audit to identify all your registered and unregistered trademarks and copyrights.
Look into international patents as well (Chinese competitors)
Avoid technological obsolescence?

Using model from Fourth Dimension in Building: Strategies for Avoiding Obsolescence
Actions in Planning and Programming
Scanning for trends that may foster obsolescence
Programming for the possibilities of future functional change
Preparing for design through pre-design analysis

Actions in Design

Assuring currency of design guidance

Targeting obsolescencesusceptible building


Using integrated building system

Making flexibility a design goal
Adopting details that enhance flexibility
Unconstrained interior space
Accessible service areas
Shell space


Using prototypes to test performance

Sizing components to serve demand growth

Actions in Construction

Separating procurement of sensitive components


Actions in Operations and Maintenance

Using post occupancy evaluation in facility management
Adapting for reuse
Managing the facilities portfolio
Making do
Supply necessary capital?

Narrow down all resources to necessary and valuable capital

Retain key personnel?

Key personnel are intensively educated in business and trained to have responsibility and

International Business Team Project

Part I. Defining your company
o What type of business do you have? High-tech business
o What is your product or service? A bluetooth, smart ring that works as an accessory to any
smartphone. Functions are - notification and alarm system, unlock/lock connected device(s),
health tracker, and payment system.



o Which business sector is your business? Information technology

o Which country do you wish to expand your business and why. China, second largest
economy, 6 Chinese high-tech companies in top ten Asias largest high-tech companies
o Whats your target market? Middle class to upper class
o What are your pricing and product strategies? Price will be slightly higher due to
international costs, shipping fee, and taxes. China has the capability to come up with similar
products very fast, which means that competition is high. Therefore, we will make sure to
showcase our product
o How much revenue do you expect to earn? $150
o How does your company stand on ethics and social responsibility? Halo is an ethical
company that is strongly committed to ethical behavior and social responsibility for our
employees and customers. When there is an ethical conflict,
we follow these rules.
Recognize a moral issue.
Get the facts.
Evaluate the alternative actions from various moral
Make a decision.
Act, then reflect on the decision later.
We also follow the pyramid of social responsibility.
Source: Carroll A.B. 1991
Pyramid of CSR Business
Horizons Jul-Aug issues 42,
1991 fig.3

Part II. Cultural considerations for doing business abroad

What are the cultural dimensions?
Consider Hofstedes cultural dimensions

What should a business person avoid

doing or saying that might be offensive in
this culture?
Creating a relationship with businesses in
China are very formal therefore representing your company should be completed in a respectful
way to keep it at a professional. When dealing with businesses in China, one should avoid humor
and be mindful of the language they use. Businesses dealing with China should avoid organizing
business meetings on significant holidays such as Chinese New Year. In addition to this,


businesses should also avoid creating negative tension and anything that is related to politics
during meetings. Engaging in a different culture can be tough although, businesses should aim to
avoid showing anger and frustration, as it may display a sense of weakness in the business.
o How is business negotiated in this culture?
Having a negotiating strategy in the business world is an important factor in the Chinese culture.
Many negotiations can be done in a range of different ways and may take a while. However,
having a clear mind set and an idea of goals and how to accomplish it is crucial. In addition to
this, it is also very important to constantly keep an accurate record of results from each
negotiation in the business. Furthermore, negotiating in China can lead to a lot of competition.
Therefore, it is important to carefully identify the decision maker in the business and who
influences them.
o What should be known about dining etiquette during business meetings in this culture?
The image of a business is an important factor when setting up a business meeting in a particular
culture. The acceptable dining etiquette during business meetings in chinese culture includes
majority of the following points, paying attention to specific details as it will strengthen the
organization's position when dealing with business negotiations. Additionally, businesses should
also be mindful of table manners, one of the most important factors of dining etiquette in China.
These include arriving early or being on time, allowing someone else to pour your beverage and
using utensils in the correct manner at the table.

Accel. Retrieved December 7, 2015, from http://www.accel.com/
Bhasin, G. (2012, April 19). 29 Rules Of Etiquette For Your Next Business Lunch. Retrieved
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Chandran, N. (2015, December 3). Guess where Asia's fastest-growing clean tech industry is.
Retrieved December 7, 2015, from http://www.cnbc.com/2015/12/03/chinese-greenenergy-companies-among-asias-fastest-growing-tech-firms-deloitte-says.html
Corporation | The U.S. Small Business Administration | SBA.gov. Retrieved December 8, 2015,
from https://www.sba.gov/content/corporation
Digital Transformation in the High-Tech Industry. (2014). Harvard Business Review. Retrieved
December 7, 2015, from
Doing Business in China. Retrieved December 7, 2015, from
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from http://chineseculture.about.com/od/businesseconomy/a/Chinese-Business-ChineseBusiness-Meeting-Etiquette.htm
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December 7, 2015, from
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from http://www.slideshare.net/anandsubramaniam/supply-chain-risk-management
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from http://www.inc.com/kelly-fitzsimmons/ten-ways-to-protect-your-intellectualproperty.html