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BUSINESS PLANFRED FENG |SEAN
RUTHERFORD
INDUSTRY’S FIRST ENGRAVING CHOICE
What we do?
Cable Tag Equipment Tag Shrink Tags
Business Overview Operations Marketing Finance Conclusion
Our Products in Action
Business Overview Operations Marketing Finance Conclusion
Why this Business?
Fast turn around times are expected
Main supplier is located in Edmonton
We want to become Saskatchewan’s main supplier of lamacoids
Business Overview Operations Marketing Finance Conclusion
Location
Business Overview Operations Marketing Finance Conclusion
Floor Plan
Business Overview Operations Marketing Finance Conclusion
Operations Process
Bulk Materials• Engraving
stock Sheets
• Heat shrink Tubing
Process• Engrave/
Print• Mounting
holes• Add
Adhesive
Package for Customer• Needs to
be easy for customer to find tags
Business Overview Operations Marketing Finance Conclusion
Target Market
Companies such as:
• Intracon Power• Chemco• Aecom Industrial• Laird Electric• Westcana Electric• Magna Electric• Lockerbie & Hole• Graham Industrial
Business Overview Operations Marketing Finance Conclusion
Market Size
Total Market Size: $600,000
Business Overview Operations Marketing Finance Conclusion
Agrium Vault5%
Sask Power: Boundary Dam
ICCS5%
PCS Expansions27% CCRL Refinery
Upgrade7%
Mosaic Ex-pansions
12%
K+S Potash: Legacy Project
13%BHP Billiton: Jansen Mine27%
Cameco: Cigar Lake Mine Up-
grade4%
Areva Resources: Mine Upgrade
1%
Pricing
We will match our lowest competitors prices
Equipment Tags & Cable Tags: $50 per sq.ft Shrink Tags: $0.30 per tag
Margin: 80%
Mark-up: 400%
Business Overview Operations Marketing Finance Conclusion
Promotion Strategy
Business Overview Operations Marketing Finance Conclusion
~20 large customers
Establishing relationships will be critical
We will not proceed unless we obtain 45% of market share
Positioning Map
Business Overview Operations Marketing Finance Conclusion
Finance -profitability
2013 2014 2015 2016 2017 $-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$19,678
$50,049
$87,612
$134,265
$178,103
Net Income
Net Income
Business Overview Operations Marketing Finance Conclusion
Financing Plan
2013
Debt financing
$50,000 50%
Equity Financing
$50,000 50%
Total $100,000 100%
Business Overview Operations Marketing Finance Conclusion
NPV & IRR
Net Present Value $330,988
IRR 108.8%
Equity Investment in 2013
$50,000
Average Owner Compensation
2013 2014 2015 2016 2017
$50,000
$51,250 $72,553 $100,703 $123,949
Business Overview Operations Marketing Finance Conclusion
Feasibility Analysis and Contingency Plans
2013 2014 2015 2016 2017
45%50%
55%60%
65%
42%40% 38%
34% 32%
S&F Target Market Share Breakeven Market Share
Business Overview Operations Marketing Finance Conclusion
Conclusion
If we obtain 45% of market share
Proceed
Business Overview Operations Marketing Finance Conclusion
Questions?
INDUSTRY’S FIRST ENGRAVING CHOICE
