ISTICKY

BUSINESS PLAN
Student Enterprise (Planning and Delivery)

488508, 501285, 514750, 514937, 495620, 495105

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Table of Contents
Executive Summary & Company Description Aims, Objectives and Vision Skills Audit Products & Services Marketing Research & Strategy PEST Analysis SWOT Analysis Competitor Analysis Sales Plan Operational Plan Financial Plan Start-up costs and capital investment Cash flow forecast Conclusion 2 3 5 7 10 10 11 12 18 19 21 21 22 26

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Executive Summary & Company Description

Business Idea/Service: The product we are going to be making is a range of stick on designs for the iPhone 4 and 4s with the product name being iSticky. Although this is a product we will also be running a service alongside. We will have a range of premade generic designs but will also give the customers a chance to send us their own photos or designs that we will then be able to print creating their own custom iSticky; This is how we are going to be providing a service because it will mean producing a custom design that a client requests and allowing us to execute that design and deliver that product to the customer within a certain number of days. Our products main USPs are that we aim to price our product at 3 per unit, with an optional 50p charge for fitting the product which will be run as a service. This means that our product will be cheaper than any of our competitors, furthermore with the offering of our additional fitting service this also gives us the edge because as many of our competitors are Internet based, they will simply just send out the product whereas we will offer with service to benefit the customer. The average delivery time for our competitors is between 5-6 days and we aim to undercut that by a delivery time of a mere 48 hours, giving us the competitive edge.

Company Details: We are a small company, which is made up of 6 individuals. Each member of the group has a range of skills or background experience each of which will help us with the progress of the company.

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Aims, Objectives and vision: The aim for our company is to be able to provide customers with a potentially unique product whilst providing them with an above average customer service. The good thing about our product is that it has a low risk factor because we only have to sell a low amount of units to break even. However we want to better that and make a profit on our product. Many businesses set this as a future goal but often becomes harder than first initial assumed, however for us we think this will be an easily achievable goal, as we only have to sell 13 units to break even on the money we have invested in the product. A future vision is for our company to be able to compete alongside high street dealers and the ever-growing Internet market and be able to survive as a company. Target Market: Due to our physical location, a large portion of our market is primarily the students of the University of Portsmouth; however our target market is aimed at those with an iPhone 4/S we therefore aim at marketing to anyone with these models. The main advantage of this is that we are not limited to just aiming our product at university students; on the other hand the disadvantage is that we are only aiming our product at people with iPhones. We think limiting a product to a certain device rather than primarily University Students allows for a far broader customer base. A further disadvantage of aiming a product just at university students is that our sales will dramatically decrease over the holiday periods such as Easter and the summer breaks when students return home. By aiming our product at people outside of university, we are still able to make a significant amount of sales throughout the year. Although it may still seem to be a limitation by aiming the product just for iPhones, with our research we have found that the iPhone sales have risen dramatically since 2010 and more importantly increased since the release of the iPhone 4 in 2011.

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

iPhone Unit Sales

Start-up finance and capital investment: Each member of the company will invest an initial 7 each, giving us a start-up finance of 42. This money will cover the cost of: 40 A4 printing sheets (80 units) The cost to print the designs on each piece of paper Packaging A device that will enable us to cut out a hole for the camera on the back of the iPhone.

One A4 sheet can print two iPhone skins, which will produce a total of 80 units, which we are selling at 3 each. Once we have sold 15 units we will look to reinvest that money back into buying more materials in order to produce more units if necessary, this way we will not have to risk putting more money into the company in order for it to run efficiently.

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Team & Skills Audit: Name: Qualifications: Peter Jones A Level -Media A Level -Computing A Level -Philosophy A Level -Psychology

Name: Qualifications:

Jishnu Guha International Baccalaureate A Level -Business Management A Level -Design & Technology A Level -Physics A Level Spanish

Name: Qualifications:

Jamie Cook BTEC -Sales A Level -IT A Level -Media A Level Art A Level Travel and Tourism

Name: Qualifications:

Sam Thomson A Level -Media A Level -Technology Resistant Materials A Level -Physical Education A Level -Geography

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Name: Qualifications:

Ashley Overington A Level -IT A Level -Drama A Level -English literature

Name: Qualifications:

Charlie Kelly A Level -Photography A Level -Film A Level -Media A Level -English Literature

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Products & Services:

iSticky is a convenient, stylish, design add on for iPhone users. We allow customers to freely design and select alternate looks for their iPhone; This is achieved by having designs on a sticky back plastic that will affix to the front and rear of the phone to change the look. The customer will be able to choose a variety of stock designs or have the freedom to customise their own design, which could be for example a photograph of their choice. USP: The USP of this product is that it allows customers to freely re-design their iPhone thus allowing them to alter the aesthetic design of the phone rather than the physical design. Our companies USP is that we will be working very closely to our clientele, allowing them to choose any design without limitations and us being able to create the design for a more than half the price of competitors. We will also guarantee to deliver the product to the customer within a 48-hour time frame, one quarter of what it takes competitors to fulfil the order. As well as being a lot cheaper and faster than our competitors we also have face-to-face customer service allowing the customer to ask any questions and for us to build a rapport with them hopefully bring repeat custom. Quality Assurance: To ensure the quality of the product that we are selling, they will undergo testing beforehand enabling us to find out whether they have the maximum adhesive quality and if the ink has smudged/run, we will also check the products cut to make sure there are no signs of rough edges or uncut parts of the skin, only then will we as a company be happy to sell the product. As part of quality assurance we will offer the service of fitting the skin, this will allow us to satisfy the customer 100% and be assured that the product works perfectly before it leaves our hands.

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

If for any reason the product has left our hands and there are signs that it is not suitable for use then we will replace the product only if it is the product that is at fault. This does not include whether the customer has fitted the product wrong and made a mistake, it does not include that if the product has become scratched or torn due to heavy wear and tear, as we offer the fitting service to resolve this. We will however advise the customer of the best way to go about fitting the product if they choose not to pay for the fitting service.

This is the guideline that we will follow when cutting the product and creating the designs, as we do not want any part of the design that is important to be cut away or blurred.

As you can see there is very little area for error, this means we will have to make sure that we take the up most care to ensure we stay within the guidelines.

To cut the product to shape we will use a corner cutter and then a sculpting knife to cut the sides and holes out, this will be done using a template of an iPhone case making sure that it is the exact shape.

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

IP and Patents: As patents go there is a patent for the cutting of the product not the adhesive skin itself. Therefore we are able to create the product as long as we do not cut it the same way competitors do. Copyright is the main issue for us as we have to make sure we do not use any images that are protected. To resolve this we will create our own images to allow our designs to be unique and different from competitors giving us the edge. We will also have to make sure any designs that people have chosen themselves are not protected otherwise we will be in breach of copyright law. The images giving examples in the designs above are copyrighted this is just to demonstrate what they will look like; therefore we will not use them for our finished designs. We have got in touch with several local photographers including Oliver Ingram giving us permission to use their photographs; this gives us an advantage over competitors as we have a photographer to provide pictures for the stock images instead of having to pay someone for rights over a photograph, which is financially beneficial. 9

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Marketing Research & Strategy:

PEST Analysis

Political
Throughout the production of our product all necessary recycling precautions will be made such as all wastage packaging shall be disposed of in the correct manner. Due to all materials being sourced within the UK any international issues will not affect our production. One issue is that there may be slight problems with the use of the Apple branding. There are no international legislations that may prevent us from the production of our product.

Economic
With the UK being in a recession, the current economic status dictates that consumers are craving low priced products which is where we will excel as we have chosen our pricing to match the current economic situation. Apple iPhones are currently a trend in the smart phone market which should increase product awareness and increase the mass of the target audience. It is a pattern in the market thus far that as a new iPhone comes out, sales of units and accessories of the previous model decrease, therefore with us appealing to those with the current iPhone 4 and 4Ss if a design was the alter in a newer model we would have to adapt our product to suit this. Any future advancements in printing technology could help to increase productivity within production. Due to the ever growing technological industry the current iPhone trend could go out of fashion which could make our product undesirable as there would be no demand for the accompanying reliant product. There may be possible issues encountered with some designs and the patent on the designs. Due to the ease of social networking and the World Wide Web, expanding the business is a possible and easily feasible opportunity which we could utilise in the future depending on the success or failure of the first batch of units produced.

Social
There are few demographic links between sales of iPhones within the consumer sales patterns therefore it makes it more difficult to pinpoint our specific target audience and match our marketing strategies to suit this. Those who own iPhones are part of a community who have a positive attitude towards the Apple iPhone brand and its design which means through our product not altering the shape of the phone itself this should keep the familiarity with the iPhones original USP which in turn becomes our USP. We can alter the designs of the covers to fit in with current trending topics and to be applicable to all people regardless of their demographics or interests. We do however have one ethical issue, that of which being having to be careful with the designs so as not to offend anybody.

Technological

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

SWOT Analysis

Strengths Weaknesses Our designs will be unique making The original concept of our product is them stand out from the average sale not unique and has been done before of this style product. which means our designs will have to be unique enough to stand out from Our product will not distort the the crowd. original shape of the iPhone keeping its design special and as the user If mistakes are made in printing then intended their phone to look when the profit of each unit goes down and they bought it. therefore the amount needed to be sold to break even will increase. We only need to sell 13 units to break even which is a realistic and We are a first time company with no achievable number which minimises reputation preceding us. the chances of taking a loss on our first batch. We can utilise the high standing reputation of Apple and the iPhone brand to help instil trust in our product. Within our group we have a wide range of skill sets which allows us to have everything we need to ensure this product succeeds. We have worked out the method of the production of our product, which we have found that we can produce our product at a phenomenal rate which ensures a high performance rating and the ability for mass production over a short time scale. The profit margin on our product is high which means minimal sales to gain maximum profit. We have a very reasonable price for our product making it soar above the other competitors on the market. Opportunitys We have the option to expand our product range with different dimensions for new phones produced but utilising the same designs. With certain trends in the market we could adapt our designs to reflect Threats There are many other competitors out on the market meaning people may choose to go for a big brand rather than us. Because there are hundreds of other phone brands on the market with the release of a new phone it could
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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

this and make it topical. With the release of the new iPhone coming out soon we can have the opportunity to adapt our designs to fit this new model and thus straight away expand our market base. The market for the iPhone brand is huge and still growing steadily which reflects on our business in the way our market range is also growing.

render our product undesirable as no one will want a skin for an iPhone 4/4s If the suppliers become obsolete for the materials we may be forced to go elsewhere and pay extra. Due to the idea not being unique this means consumers may already have faith in another more established brand doing the same thing which would lose us business.

Competitor Analysis Selling iPhone covers is not a unique concept or idea and through our research we have found ourselves faced with many other competitors. Whilst using keywords on internet search engines such as iPhone skins the top result has been a website called wrappz.com

This company offers skins for not just iPhones but a plethora of devices; they offer a selection of preset designs and also the ability to customise your own design. The companys key selling point is the

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

ability to customise their designs and they give the real sense of personalisation with the customer which makes them seem as if they are really giving the customer exactly what they want. As a competitor we feel we have the edge over them, they have a base starting price of 7.99 for the customised skin, we are charging 3 which is less than half of what they are asking, they also state a 1-2 working day delivery time on orders through their site, we offer a similar time frame of 48 hours however as we will be going out and selling our product in person the customer has the ability to walk away with one of our stock designs instantly without the wait. Whereas we offer a fitting service for an extra 50p they have a design of their product which should ensure anybody could fit it themselves, which if correct means their actual product as the slight edge over ours. Research dictates that this company is our primary competitor, however due to our low prices and quick production times we have the competitive edge over them.

This is a second web based company which also produces a range of skins for different devices, including the iPhone 4 and 4S. The average price of their skins is 7.99 which once again puts us at an advantage with our vastly superior lower prices. 13

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

This company doesnt offer the ability to customise your own case which gives us the competitive edge, they also have a delivery time of approximately 7 days for delivery within the UK which exceedingly longer than our instant-48 hour delivery. This company seems to have a bonus where they have gained the rights to use certain patents, for example on their homepage is the use of the Mr Men franchise, at the moment we do not have any approved usage of large established brands such as this. Aside from the online retailers there are market stalls and shops set up around the local vicinity which sell similar products, the pricing of these we found to be on average of 5, this allows us to be reassured that so far we are offering the cheapest prices around which is alluring to prospective customers. The designs of some of the ones being sold at these places are very generic and the sort of cases that can be found all over the place, they also do not offer the ability to customise your own case which is another negative factor. The sort of covers they are offering are protective style cases which is where ours differ; ours are a vinyl sticker design which will not obstruct the initial design or feel of the iPhone. Market Research Data: When the original iPhone was released it revolutionised the smartphone world. The iPhone brought about an entire new market of business from paid applications to a vast range of accessories for the devices. Ever since its first release and the release of upgraded models the sales of the phones has shot up dramatically, this graph shows the sales of iPhones up until the first quarter of 2011

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

The most recent results released by Apple show that 37.04 million iPhones have been sold in the first quarter of 2012. It is clear that the most popular iPhones have been the two most recent models the iPhone 4 and 4s, which is exactly the design we are aiming our product at appealing to. From our research we found that iPhones took up nearly half of the smart phone population of those we surveyed.

Smart Phone Share

iPhone Android Symbian Other

Aside from iPhone handsets there is a mass of accessories available, stretching from headphones, to docks to cases. According to http://www.istockanalyst.com/business/news/4991739/apple-s-iphone-sales-figuresenergize-gslo-s-outlook-for-the-volt in the first quarter of 2011 Steve Jobs, Apples late CEO announced iPhone sales, services and accessories accounting for $10.468 billion giving an 88% percentage increase this shows a positive correlation between the sales of iPhone and the accompanying accessories.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Third party accessories took a massive lead forward with Apple releasing compatibility rights to other companies to produce accessories for the iPhone, docking stations have been amongst some of the biggest electrical accessories with cases being the largest other source of revenue. Through our research we have found that 90.5% of those owning a smartphone would purchase a case for it with 61.9% of those who would be interested in buying a customisable case

Buy a case
No Yes Yes 0 50 100 No Yes 0 No

Custom Case?
Yes No 20 40 60 80

This shows us that there is a clear demand for the product we propose to sell. Because of the nature of the product we will be selling, the designs of the cases is a vital selling point so we gave our survey participants a selection of categories through which they would like to see on a case they bought with the option to select up to 3 and here are the results.

Categories

Landscape Technology Portraits Cartoon Film/TV Slogans Graphic Art

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

From our results we have established that the three most popular categories to focus on are: 1. Graphic Art 2. Slogans 3. Film/TV

This is good indication of what style of designs to produce to test the market through our first batch of models. Marketing Mix: From the research stated above we have deduced that there is an ever-growing market of consumers looking to purchase smart phones. Unlike most other products the target market for these devices has no specific age bracket that they fall under, as over the years consumers have been getting more and more technologically aware. This table maps out the marketing mix for smart phone accessories. Marketing Aspect Basic customer need UK smartphone accessories industry To acquire stylised, and potentially individualised smartphone accessory cases to integrate fashion with functionality of the product. Target market Very wide-ranging domestic market from within all age groups and genders. However, with ever growing technological advancements there is room for the margin to widen even further through future developments on our range of suitable devices. Product The iSticky clear plastic film covers for the Apple iPhone 4/4S, with customizable graphic design.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Price

The iSticky is priced to compete with the many other online and retail store accessory providers who sell each unit at an average of more than double our selling price.

Principal promotional tools

This particular industry shows no specific restrictions and regulations on promotional methods. Our efforts will be via personal selling directly to customers in the free market areas of Portsmouth University and Southsea, as well as online forums and social-networking websites such as Facebook and Twitter.

Sales Plan: As a company we feel that we do not want to limit ourselves to being a purely online retailer like some of our competitors, therefore we are choosing to approach our sales techniques in a more personal and engaging way. We aim to sell our products face to face with our customers this way we can implement our highly established selling techniques to boost our chances of a sale, this will be achieved by putting ourselves into the public sector by approaching our target audience in the locations they feel most comfortable and likely to buy a product, for example in a town centre where the mind-set of those who are there is already set to purchasing a product of sorts. We will also be approaching the University of Portsmouth Students Union where a large proportion of our audience reside. Our overall sales plan is to put ourselves in a position where we can be easily noticed by our customers which will increase the chances of making a sale.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Operational Plan:
Premises: Due to the size of our product and the equipment we will be using, there is no need for us to rent out any form of storage facility, as all the components are easily stored either on site or at one of the directors residence. The printing facilities are located on site within the university and are unable to be taken from the area. The equipment we will be using to create the product such as crafting tools are all a reasonable size to be transported safely and securely whenever and wherever they are needed; therefore it would be more efficient if we store them at one of our current establishments and bring them along when they are needed. This will however add more responsibility to the person in charge, as they will have to ensure that they bring all the required equipment each time they are needed. The printers to be used are located with the University's Library: University Library, Cambridge Road, Portsmouth, Hampshire, PO1 2ST, UK. Equipment: Our product is easily created with minimal equipment needed. LaserJet Printer A4 Self Adhesive Clear Sticker Paper Sheet All Designs or customers photos to be used. Crafting Knife Cardboard sleeves and plastic cover for packaging purposes.

Suppliers: Printing Facility - University of Portsmouth Library

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

University Library, Cambridge Road, Portsmouth, Hampshire, PO1 2ST, UK Tel: (023) 9284 3228 Email: elibrary@port.ac.uk A4 Self Adhesive Clear Sticker Paper -Online website http://www.photopaperdirect.com/products/A4-Self-Adhesive-Clear-StickerPaperSheet.html

Staff: The staff consists of six members of the team each with their own specific roles. Product Design and Sales: Project Manager: Financial Manager: Operations and Logistics Manager: Executive Director: Peter Jones and Jamie Cook Jishnu Guha Charlie Kelly Ashley Overington Sam Thomson

Public Liability: As we are dealing with members of the public, we will need to ensure that we have public liability insurance; this will protect us from anyone who buys our product and have experienced an issue with it. A problem that could appear often is applying the product to the back and front of their iPhone, however we have ensured that we are covered from this by offering a fitting service for an additional cost so the customer can be guaranteed they are getting a good quality product. As students at the University of Portsmouth we are covered by them in terms of public liability and therefore do not need to take out any of our own.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Copyright: As we are creating the designs from scratch we will have copyright on all the images we create, however we will not be able to use any images we find off the Internet, as we will be selling them on to make a profit. Part of our service is to allow customers to provide us with a design of their choice, such as a picture from a night out they have had, just as long as the picture was taken by them or is owned by them then we will be able to create the design, if the design they present us with is something they have found off the Internet then we will be liable for prosecution and therefore will refuse to create it for them. Health & Safety: In terms of health and safety our product should not prove to be a major health risk, however, like with any plastic, it can present a choking hazard should children get hold of it. Therefore on our packaging we will display warnings stating that it should be kept out of reach of small children as it can present a choking hazard. There are health and safety factors that we have to take into account mainly whilst creating the product. We will need to ensure that we are careful when it comes to cutting out the designs for we will be using a crafting knife which presents us with the possibility of cutting ourselves.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Financial Plan:
Start Up Costs And Capital Investments: To start up this company each board member will begin by investing their own money into the company. The total cost to start up our company is 30 pounds meaning that each board member only has to invest 5 each. This 30 will enable us to buy 40 sheets of A4 Self Adhesive Clear Sticker Paper Sheet. This will then allow us to create 80 units (as we can fit two to one A4 sheet). We currently posses the required software necessary to complete the designs meaning no additional costing is needed on this front. The original 30 investment will be spread out throughout our threemonth period in order to keep us supplied with adhesive clear sticker paper. Break Even Analysis:

Break Even Chart

120

100

Total Revenue of Sales

80 Total Revenue 60 Fixed Cost Variable Costs 40

20

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Output

Here our break-even chart shows us exactly how many units we will need to sell in order to break even. Our variable cost along the bottom can hardly be seen, this is due to the fact that it costs us so little to make each unit (37p). It stays at a constant rate because of the way we are buying our 22

Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

materials. We have decided to bulk buy so that we are stocked with the materials whilst the business is running. The graph above shows us that we need to sell 74 units in order to break even. Over a longer period of time the variables costing will alter and be raised due to the fact of having to restock new materials. Cash Flow Forecast: For our Cash flow forecast we have chosen to do it monthly rather than yearly. The reasoning behind doing this is because it is only a short-term business. We feel we have made our forecast as realistic as possible to give an accurate prediction for our business.

Here you can see our sales forecast for six months. As you can see in the table we dont have to spend much money on other expenses, as our product is self-manufactured and we have all the required equipment to make the compulsory number of units we only have to pay for people wages and the adhesive paper. This is a massive bonus giving us the opportunity to create and sell cheaply. We got these sales figures from market research, to hit these targets each member only has to sell 2 units in the first month each, which we feel is a very achievable target. From our research we felt that then adding 10 extra units each month would again be achievable, as our reputation would have grown along with our confidence and ability to sell the product.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Profit and Loss Account:

As you can see from the graph showing our profit and loss, we are able to successfully make money each month, however from research and other data collection we have discovered that many companies over time get a dip in sales. We included this into our plan and we believe that after the first four months of selling we will see a dip. Usually bigger companies would then inject more money into their business for advertising; however we plan to use social networking sites to promote our product as well as word-of-mouth. These approaches mean that no more money is needed to be put into the business. This constant profit made each month enables us to turn our original investment of 30 into total revenue of 378.19. This means that over a six-month period 1260.63% profit.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Profit and Loss Analysis: This profit and loss analysis is over the 3-month period in which we will be actually running the business and be active in sales.

As shown in the table above we intend to make profit. Within the three months you can see that our total income will be 225 with a spenditure of only 28.11 on materials along with 54 on wages, leaving us with 142.89 net profit meaning that from the original 30 invest we look to make 476.3% profit.

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Student ID: 488508, 501285, 514750, 514937, 495620, 495105

iSticky

Conclusion:
iSticky, the quick, convenient and fresh redesign for your iPhone, customised just the way YOU want it!

We feel that our product has the capability to succeed on a phenomenal level, with the opportunity to achieve sales far above and beyond our competitors. With minimum investment and risk and a high potential to excel in the iPhone accessories market we can reach out to a customer base on a massive scale, securing maximum sales with a consistent high profit margin. With the skills each member of the team can bring, we have everything we need to make this business a success!

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