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3D ADDITIVE MANUFACTURING
TECHNOLOGIES, CO. 3-DAMTM
Starting A New Venture MGMT 6630
Joe Ott
7-18-2012
BUSINESS CONCEPT
1. INTRODUCTION
1.2. BUSINESS IDEA
1.3. BUSINESS MODEL
1.4. BUSINESS GOALS
1.5. KEYS TO SUCCESS
2. THE COMPANY
2.1. LEGAL STRUCTURE AND OWNERSHIP
3. PRODUCTS / SERVICES
3.1. PRODUCT AND SERVICE SUMMARY
3.2. CUSTOMER
3.3. TECHNOLOGY
3.4. REGULATORY ISSUES
4. THE MARKET
4.1. MARKET ANALYSIS
4.2. TARGET MARKET SEGMENT
4.3. GROWTH POTENTIAL
5. THE INDUSTRY
5.1. COMPETITION
6. SALES
6.1. SALES STRATEGY.
6.2. PRICE STRATEGY
6.3. PROMOTION STRATEGY
6.4. SALES FORECAST
7. THE MARKETING PLAN
8. MANAGEMENT AND EMPLOYEES
9. ACTIVITY PLAN
10. FINANCE AND ECONOMY FIGURES
BACK UP SLIDES
margin.
Diversification Growth Strategy - 3-DAMTM would practice Forward
Integration by getting in front of the customer
Technologies2
Why pursue additive manufacturing? There are many benefits in using additive manufacturing to
Design flexibility
No tooling constraints
Allows complex models
No hard tooling required
No material lead time
Automated process
Reduced development expenses
Faster concept design to functional component
Reduced manufacturing costs
Near wrought material properties
Reduced product life cycle cost
Reduced manufacturing time: hours/days/weeks vs. months
Minimal secondary machining - near-net shape part
Additive manufacturing is an emerging industry.
6 years of operation:
Increase market share establish a store in 10 major US cities. Have plan developed to have 50 stores in
major US cities by 10 years of operations.
Increase market penetration over time continue to grow revenue at least 12.5% yearly, per store.
manufacturing. Customer(s) can contact the business center by phone, web, or face-toface. Sales engineers would be available to help customers work through product
development and iteration until the final product is ready. Pricing would be evaluated
based upon the necessary amount of engineering and development to make hardware,
material considerations, and post processing requirements.
Powder Bed Technologies - Powder Bed is the distribution of thin layer of powder (metal or thermoplastic) and uses an
energy source to sinter/melt the powder into solid form. Powder Bed Technologies offer high resolution, medium volume,
small to medium sized part capabilities. Two common methods are:
Selective Laser Melting laser beam power source in an inert atmosphere (nitrogen or argon)
Electron Beam Melting electron beam power source in a heated, vacuum environment
Deposition Technologies Metal is introduced via powder nozzle or wire feed into an energy source directly at the build
location, which melts to metal into solid form. Deposition Technologies offer lower resolution, lower volume, larger sized
part capabilities. 3 common methods are:
Laser Powder Deposition laser/power nozzle combination
Laser Wire Deposition use of a continuous feed wire and laser energy source
Electron Beam Wire Deposition use of continuous feed wire and EB energy source
Specialized Software (CAD/CAM, 3D model analysis, project/customer management) will be required to seamlessly
integrate customer models between additive mfg. platforms and required post processing technologies.
"Green Technology"
PPE
Inert Gases
Intellectual Property7
Product Liability7
Year 2
Year 3
CAGR
Sm. Business
100
513
677
61,30%
Lg. Business
10
52
68
61,48%
Hobbyists
310
1 590
2 098
61,29%
Total
420
2 155
2 843
61,30%
Hobbyists
Year 1
Potential Customer
provider. http://www.mydeatechnologies.com/
Shapeways 3D Printing company for designers and Do-It-Yourselfers. Helps people make and
The following companies are a selection that specialize in additive technology and would be
Sales
Year 1
Year 2
Year 3
Sales
Engineering
98 000
503 000
664 000
Powder Metal
144 000
740 000
975 000
Powder Plastic
104 000
533 000
704 000
Total sales
346 000
1 776 000
2 343 000
240 000
525 000
620 625
Powder Metal
24 000
70 000
82 750
Powder Plastic
24 000
52 500
62 062
288 000
647 500
765 437
Direct costs,
sales
Sales
Engineering
Total, direct
costs, sales
Sales monthly
campaigns.
The campaign will utilize TV, trade journals, and the internet (web pages,
FaceBook, etc.).
Highlights of ads will target design freedom, no or low tooling, and speed.
Additionally, small to large manufacturing companies will be approached.
CEO / CTO - complete oversight and responsibility for the company as well as technical
authority.
CFO - direct oversight of the following reporting line: Accounting, Patient Accounts,
Communications, Purchasing, Printing & Duplicating, Information Management,
Management Information Systems.
Accounting and Human Resources - Accounting and Human Resources will be
outsourced to a 3rd party company and overseen by the CFO.
The company will be responsible for all day to day accounting and human resources activities, including
accounts receivable and payable, health and dental care, 401k management, and taxes, etc. The company
should have experience with accounting and HR in all US states. It would be preferred if the company has
experience with start-up companies.
Activity
Start date
Stop date
03/01/2013
06/01/2013
Store
03/01/2013
Hire Accounting /
HR
Responsible
Department
5 000 000
CTO
Technology Team
06/01/2013
1 052 800
CTO
CEO
01/02/2013
05/31/2013
100 000
CFO
CEO
Supplies
03/01/2013
06/01/2013
100 000
CEO
CEO
Advertising Co.
04/01/2013
06/01/2013
100 000
CEO
Branch Managers
Total
Budget
6 352 800
Start-up Costs
Research
Technology
100 000
Research
Store
Location
200 000
Permits and
Fees
100 000
Marketing
Study
100 000
Total Start-up
Costs
500 000
Start-up
funding
Bank Loans
3 000 000
Bank Loans
2 000 000
Other
Investors
2 000 000
Grants
2 000 000
Government
Loans
1 000 000
Total Start-up
funding
10 000 000
Total Equity
9 500 000
The following describes all the Start-up through Second Stage funding
(existing and needed) for the project:
Bank Loans $3,000,000 Secured against the procured equipment.
Equipment, Real-estate, and Long-term loans.
Angel Investors $2,000,000
Other Investors $2,000,000 Informal Risk Capital, Venture Capital
Grants $2,000,000 SBIR - Phase I and Phase II, Fed, State, Local.
Government Loans - $1,000,000 SBA (504, SBA), etc.
Total: $10,000,000
Third stage (growth) funding would be necessary for expansion beyond
the first store and would be necessary at last quarter 2013.
Year 2
Year 3
Sales
346 000
1 776 000
2 343 000
Sale costs
288 000
647 500
765 437
--------------BTO profit
---------------
---------------
58 000
1 128 500
1 577 563
17 %
64 %
67 %
Salaries
830 004
1 040 000
2 190 000
Additional Salaries
costs
273 901
343 200
722 700
6 352 800
1 210 560
6 052 800
12 105 600
Accounting / HR /
Advertising Services
99 996
200 000
200 000
99 996
400 000
500 000
20 000
96 000
120 000
Insurance
999 996
4 000 000
5 000 000
Maintenance Plan
100 000
400 000
500 000
Research Technology
100 000
Research Store
Location
200 000
100 000
Marketing Study
100 000
BTO profit %
Expenses
Marketing and
activity costs
Depreciation
---------------
---------------
4 134 453
18 884 800
21 338 300
-0
-0
-0
-4 076 453
-1 178 %
-1 000 %
-843 %
Year 2
Year 3
1 297 208
-9 265 893
346 000
1 776 000
2 343 000
1 643 208
-7 489 893
Current assets
Liquid assets
Sales
Total current
assets
Fixed assets
YR1
YR2
Current Ratio = 0.16
*indicates low liquidity
YR3
-1.08
-1.33
Fixtures and
fittings & fixed
assets
6 052 800
29 264 000
54 528 000
Debt Ratio =
6.43
-0.92
-0.75
*indicates business while taking on more debt
is working out of debt
Acc depreciation
fixtures &
fittings/fixed assets
1 210 560
7 263 360
19 368 960
4 842 240
22 000 640
35 159 040
Total assets
6 485 448
14 510 747
15 247 447
Liabilities
Share capital & risk
capital
10 000 000
10 000 000
10 000 000
Accounts payable
288 000
647 500
765 437
Accrued taxes
273 901
343 200
722 700
Long-term
liabilities
Balanced
profit/loss
-4 076 453
3 520 047
10 561 901
6 914 247
15 008 184
-4 076 453
7 596 500
239 263
0.10
Year 2
Year 3
10 000 000
6 644 130
-6 790 066
346 000
1 776 000
2 343 000
346 000
1 776 000
2 343 000
612 082
2 859 146
2 479 729
958 082
4 635 146
4 822 729
Cash expenditure
2 937 992
13 136 300
9 275 437
2 937 992
13 136 300
9 275 437
323 160
721 842
1 253 200
1 052 800
4 211 200
5 264 000
4 313 952
18 069 342
15 792 637
-3 355 870
6 644 130
-6 790 066
Back Up Slides
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-1.5
Debt Ratio =
1.623.340.76
*indicates store is working out of debt
Debt to Equity =
1.32
*High capital industry/business
Net Profit Margin =
-11.78 -11.74 -10.42
*indicates high initial risk but business working toward stabilizing.
ROI =
-0.63
-2.34
1.78
*indicates high initial risk but business becoming more stabile.