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Business Plan Innovative Toilet Seat

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Business Plan
CHE488 ENTREPRENEURSHIP AND BUSINESS FOR ENGINEERS

Student: Matheus Borges Piuzana Barbosa - #1001008401 Professor: Joseph Orozco

University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014) Table of Contents
1 Executive Summary ............................................................................................................... 3 2 The Business and its Owner ................................................................................................... 4 2.1 The industry ..................................................................................................................... 4 2.2 Business Location............................................................................................................ 4 2.3 Key people ....................................................................................................................... 4 2.3.1 CEO: Matheus Borges Piuzana Barbosa ...................................................................... 4 2.3.2 Research and Development: Erick Fonseca ................................................................. 4 2.3.3 Sustainability Responsible: Louis Briand .................................................................... 4 2.3.4 Marketing Consultant: Lucas Henrique ....................................................................... 5 2.4 Trademark and patent info .............................................................................................. 5 3 Description of the Product ...................................................................................................... 6 3.1 Technical Description...................................................................................................... 6 3.2 Product’s Manufacture .................................................................................................... 6 3.3 Product’s Characteristics ................................................................................................. 6 4 The Market ............................................................................................................................. 7 4.1 Market’s Size ................................................................................................................... 7 4.2 Estimated Market ............................................................................................................ 7 4.2.1 Market Survey .......................................................................................................... 7 4.3 Competitors ................................................................................................................... 12 5 Implementation and Strategy................................................................................................ 13 5.1 Sales Strategy ................................................................................................................ 13 5.2 Marketing Strategy ........................................................................................................ 13 6 Financial Statements............................................................................................................. 14 6.1 Income Statements ......................................................................................................... 14 6.2 Cash Flow ...................................................................................................................... 16 6.3 Balance Sheet ................................................................................................................ 18 7 Conclusions .......................................................................................................................... 19

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)

1 Executive Summary Innovative toilet seat. It is known that we face some big problems in the public services, and when hygienic issues come out it is needed much more attention. Because of the lack of hygienic in the public restrooms, people try to avoid using them or they do not feel comfortable enough while they are using. An alternative solution can be provided with a replaceable toilet seat in order to minimize these issues. Consisting in a mechanism that changes the used plastic attached in the seat and replace to a new one, the problem of not being hygienic is solved. However, where is the final destination of the plastic? As we are aware about the environment and we are not sure where the used plastic goes, a new efficient method is to remove the used plastic and throw it away when flush is pulled. The very new characteristic is that the plastic is made by biodegradable material, so it can be easily decomposed in water. Moreover, people may face with lack of toilet paper. Instead of using paper, another alternative to be implemented inside the sanitary toilet is a nozzle, which expels water controlled for temperature, speeds and strength by the user, ensuring hygienic and comfortable cleaning after use. Furthermore, in order to stop the bad smell, the toilet has an automatic spray component which leaves the toilet with a refreshing fragrance. These new features will strongly minimize the problems of the lack of hygienic in the public restrooms, giving to everyone betters conditions and contributing to the conservation of the environment in a sustainability manner. This product is intended to public buildings in general, such as malls, universities, colleges, hospitals and hotels. Aiming to penetrate the market, this product is a very good option to investors put their money in because its features and solutions.

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
2 The Business and its Owner 2.1 The industry The industry seems to be very favorable due to the lack of investments in this area. Although it is a significant problem, the lack of hygienic is an issue that the companies in this area are not concerned. This can be proved since these companies just offer different shapes and sizes of toilet seats, and not solutions to decrease the problem in the public toilets. 2.2 Business Location The business will essentially takes place in Toronto since the tecnology and investors can be found in this area. 2.3 Key people 2.3.1 CEO: Matheus Borges Piuzana Barbosa    Undergraduate Industrial Engineering student. Schorlarship for exchange program at University of Toronto from Brazilian Government. Highly capacitated in team management.

2.3.2 Research and Development: Erick Fonseca    Mechanical Engineer. Owner for 25 years of a Mechanical Design company. Reference in construct equipments and tools.

2.3.3 Sustainability Responsible: Louis Briand    Environmental Engineer. Specializing in Environmental Laws. Accomplished the first place in the V National Conference on Sustainable Development hosted in Brazil. 4

University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
2.3.4 Marketing Consultant: Lucas Henrique   Specializing in Marketing at the best advertising school of South America. Creator of different advertisings for the government which had extremely positive effects in the society in general. 2.4 Trademark and patent info Due to the fact that it is a developed product, there is an already similar patent. However, considering the new features it can be new patented product.

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
3 Description of the Product 3.1 Technical Description     The toilet seat is a plastic which is replaceable everytime the person pushes a button. The plastic is made with recyclable material that can be easily decomposed. When the flush is pushed, one mechanism cuts the used plastic that goes away with water. The optional nozzle expels water controlled for temperature, speeds and strength by the user to ensure a comfortable cleaning. The toilet has an automatic spray component which leaves the toilet with a refreshing fragrance. 3.2 Product’s Manufacture      It can be initially produced in Canada because all the components can be found here. A medium facility and approximately 20 employees will be required to produce the product at a first moment. Three equipments: one to build the engine that makes the plastic replaceable, another to enable the cutting of the used plastic and one to operate the spray. According to the increase of demand and aiming to reduce costs, the production may change to another country which offers better conditions. The use of recyclable materials will reduce costs, and give an environmental friendly feature to this product. 3.3 Product’s Characteristics     Unique in the market. Almost finish with the lack of hygienic problem. Makes people feel more comfortable. Environmental friendly.

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
4 The Market 4.1 Market’s Size

 

According to Statistics Canada, based on the North American Industry Classification System (NAICS), around 260 establishments are presented since 2010. Analysing the column of number of establishments is possible to observe a stable numer of establishments, which means that the toilet industry does not have a high growth. Although this can suggest that this business is not economically viable, if one company releases a well developed product, it can be easily penetrate the market.

4.2 Estimated Market  Toronto will be analysed as the target market due to the extensive quantity of information available, but the product will be sold across Canada. 4.2.1 Market Survey  A form was asked for two differents groups: regular customer, represented by people in general, and facilty manager, which envolves owner or manager of buildings.  The purpose is to indentify who are really interested in buying the product. 7

University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
 The form is detailed bellow:



Dividing the two groups, the form was answered by 8 facility managers and 19 regular customers. For the regular customer, the form asked:

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)

 

As we can see the majority of regular customers are not willing to buy for their own homes. For the facility managers,

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)

 

As we can see 100% are interested in invest their money in improving the public toilet conditions. And the majority can pay between $20-$40 dollars for the product. Because of this, the customer segment will be focused only in the public facilities, since they are more interested in investing in public toilets. The suggested price is $35,00.

4.3 Competitors  The innovative toilet seat will compete against the traditional brands of common toilet seats. They are most selled by:

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
5 Implementation and Strategy 5.1 Sales Strategy  As the company has one specialist in which area, the manufacturing process is completely made and managed by key people. The engine required to makes the plastic replaceable, to cut the used plastic and the automatic spray will be construct by the mechanical designer.   The byodegradable plastic will be acquired in companies that works with recycable materials. The quality control will be managed by the environmental enginneer. The advertising section will be fully made by the marketing consultant and his team.

5.2 Marketing Strategy      One special presentation will be presented for all firs interested companies where they are located. Exclusive advertising in the section of the product including banners and videos. Showing the product to facilities managers through videos or personally. Advertisings on furnitures events. Online advertisings on website.

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
6 Financial Statements  The amount necessary to install the company is $100,000.00. This money is expected to come from venture capitals and angel investors. The initial monthly expenses (including maintenance, marketing expenses) are around $97,000.     Costs of Goods sold are assumed 20% of sales. Administrative Expenses are assumed around 26% of sales. Years 4 and 5 have 6% increase rate in sales force. Taxes and interest are estimated 10%.

6.1 Income Statements

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
6.2 Cash Flow  The cash flow projections for 5 years assumes an interested rate of 5% of the first 2 years and continue stable for the rest of the accounts payable.

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
6.3 Balance Sheet

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University of Toronto CHE488: Entrepreneurship and Business for Engineers (Winter 2014)
7 Conclusions  As stated in the financial statements, when past 5 years it is possible to see that the company will have an income of over $1,200,000. Although the first two years don’t show very good financial results, it is expected a considerable growth during 5 years.

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