Slide 1

Eco-SpinBusiness Plan PresentationTeam 7: Joe Cha, Ryan Ollie, Kent Utama, Paul Von Hertsenberg

1Current Biking SituationOver 1,500,000 people nationwide commute to work via bicycleWasted potential energy generating process

http://www.corbisimages.com/Enlargement/42-18916569.html2Current productsStationaryPowers a headlightRequires a special tire

http://www.econvergence.net/images/electron.jpghttp://www.bikedenver.org/wp-content/uploads/2007/02/dynamo.gif

What makes a bike accessory desirable?Good question

http://s7.thisnext.com/media/largest_dimension/625DBBFE.jpg

Goals for a must-have accessoryUnobtrusiveEasy to installDurablePromotes bike usageUSEFUL

Eco-SpinEco-Spin enhances the existing bicycle without obtrusionActively recycles energyCharge USB devices while ridingEncourages biking over driving

6The MarketBike commutersIn 2008, .55% of Americans commuted to work on bicycles (ACS 2009)Our survey results show that largest consumer market will consist of ages of 18 to 30cities/college towns worldwide

Eco-Conscious People Also appealing to those who enjoy recycling energy. Green people who actively look for ways to save the environment

7

Design Evolution

8Prototype

9Market ResearchOver 1,500,000 people commute to work on bikes everydayTarget maximum quantity of 800,000 (~53%)Conservative ceiling considering appeal to non-commuters as wellCommuters only make up 10% of adult bikersAppealing to green bikersProduct will create its own market

10Bike Commuter PopularityGrowing marketUntapped potentialNo barrier to entry

Bicycle commuters out of American population (ACS)20092008200720062005.55%.55%.48%.45%.40%Long Term Market PlanStart with cities in California The next year target the West CoastIn year 3, target overall commuter market with 53% market share800,000 people

12Profit Model

13Bill of MaterialsPart NameMaterialMat costadd costTotal costCylindrical Rolleraluminum11Roller coverrubber0.50.10.6Spur Gearsaluminum40.14.1Roller housing with mountplastic10.31.3DC generatorMixed22Battery housingplastic10.31.3AA BatteryNiMH88PCBMixed55Basic wiringWires0.20.10.3Mount for housingaluminum10.11.1Packagingcardboard0.50.5Total25.2CostsFirst Year Sunk Costs Design EngineeringManufacturing Process DevelopmentManufacturing Equipment Purchase and initial tooling Injection molding, tooling, soldering, Testing Equipment Fixed Variable CostsEmployeesMarketingCleaning and equipment maintenance Rent for 8500 sq. ft facilityUtilities Insurance Safety Miscellaneous expenses

$720,000

$500,000$200,000$30,000$42,000$11,000$75,000$25,000$20,000_____$900,000What Does Green Mean?63% of people agreed to pay $10 more for a green product

Our DefinitionGreen means using only non-toxic materials

What Does Green Mean?Added cost to the productChanging batteries changes lifetimeNiMH offers 3 years of lifeNiZn (green) offers 1 year of life

17Side-by-side ComparisonNormalGreenFirst year cost ($)720,000800,000Fixed Cost ($)900,000950,000Variable cost ($)25.231.4Selling Price ($)3545Annual Income ($)1,150,0001,150,000Interest Rate (%)66Breakeven AnalysisNormal plan would take 3.25 yearGreen would take 4.7 years

3 Year Outlook

Questions???21