New Product for a Start-Up Enterprise business report

The company would make the most use of recycled high quality vinyl event banners (which are weather tolerant and non-toxic) to create revolutionary products. The concept arose from the extreme lack of low-cost protective gear for waste management staff (WMW), prompting the team to design a low-cost suit that aims to reduce the health risks associated with this line of work. Safe-Thee Solutions is entering an untapped market for low-cost safety clothing, as well as many other creative technologies aimed at poverty alleviation. The product line includes:(i)low-cost protective suits and accessories for WMW;(ii)low-cost raincoats for rickshaw-pullers, underprivileged school children, and outdoor workers;(iii)premium designed raincoats;(iv)premium oriental-style bamboo umbrellas for middle to high-income earners;(v)premium car sunshades for car owners. The premium products_x0092_ higher profit margins will be used to subsidize the prices of the low-cost products, ensuring sustainability in the long-run. The company sources idle vinyl banners from event management firms and large companies for free and then outsources the manufacturing of most its products to local raincoat, umbrella, and relevant accessories manufacturers.

Current market scenario presents many opportunities to the company. Quality raincoats are usually imported from China and are priced well above the purchasing power of the poor masses. The availability of protective gears for WMW is non-existent (Thomas, 2012). The only protective suits that exist are imported nylon or polyester suits mainly used in pharmaceutical companies. Furthermore, _x0093_socially conscious shoppers_x0094_ who shop for a cause are also under-served in the developing country (Ravindra, Kaur, & Mor, 2016). Safe-Thee Solutions serves to those who want to make a difference through the simple act of purchasing. Being a pioneer, the company should enjoy first-mover advantage. The procurement of free raw materials and an already established supply-chain should give the company a competitive edge in the market.

The product beneficiaries are primarily the WMW, rickshaw-pullers, and underprivileged children. Sewerage cleaners will be better equipped against various occupational hazards and diseases like Hepatitis A. They and rickshaw-pullers will have higher productivity and their income will no longer suffer due to absenteeism. The children from disadvantaged backgrounds will also be able to attend regular schooling. Additional medical expenditure can now be spared for other basic needs. The company has a forecasted Initial investment $450, 000, Net profit (Year 1)-$ 2,229,500 and payback period of 4.4 months.

Description of the Business

Safe-Thee Solutions aims to provide waste management workers (WMWs) with protective suits made from recycled advertising banners to help them avert various work-related diseases. Currently due to the unavailability of any low-cost protective gears, most of these workers are forced to work bare-clothed which makes them susceptible to a range of diseases (In Prentice & In Neve, 2017). Unfortunately the needs of the WMWs are neglected and this deters many people from joining the conservancy department which is hugely understaffed. As a result, the city_x0092_s waste management system remains in shambles. By providing the workers with protective suits, Safe-TheeSolution not only safe guards the needs of the WMWs but also encourages more people to join this line of work.

Safe-Thee Solutions will also provide low-cost raincoats made from recycled advertising banners to rickshaw pullers and underprivileged school-going children. Currently, they have to endure the harsh weather conditions of the rainy season without any protection (raincoats) and as a result they suffer from various health-related problems which lead to absenteeism and loss in productivity (Baltina et al., 2017). By providing them with low-cost raincoats, Safe-Thee Solution aspires to protect them from acquiring various diseases and helping them curb down on their medical expenses.

Most of our products will be made from disposed advertising banners. These banners are used extensively for advertising purposes and are disposed once they run out of use. Most of them end up in landfills and being non-biodegradable they create negative environmental consequences (In Prentice & In Neve, 2017). Safe-Thee Solutions will collect these banners from various advertising and event management companies and recycle them into a more productive form.

Most companies are at a loss as to what to do with the banners once it runs out of use. Currently there is no convenient way to get rid of them and most companies are more than happy to give them off for free to anyone who lays claim on them. Therefore Safe-Thee Solutions will provide a new avenue for these firms to get rid of the banners in a more convenient and environmentally friendly manner. This inadvertently means that the raw materials for the protective suits and raincoats can be sourced for free, enabling us to produce them at such low costs.

Competition/Marketing Strategy

Most cities have been unable to keep up with the urban growth. Lack of prudent planning has led to ineffective waste management system and the sector is largely dependent on manual labor. Most WMW, due to a lack of awareness and acute shortage of protective gears, work bare-clothed without following any guidelines. The workers are susceptible to many health hazards as their work entails the handling of various toxic substances and cleaning clogged sewers. For this reason, Safe-TheeSolutions will operate in this waste management industry with an effort to reduce the amount of recyclable waste in the country and in the process create sustainable products to help those in need.

The minimum price of a low-quality raincoat is $7.1(5.5% of a low-income family_x0092_s monthly income). Unaffordable raincoats expose the underprivileged children and outdoor workers to the harsh monsoon and present many health risks (pneumonia, common cold etc.) (Thomas, 2012). Forgone income due to absenteeism and high medical bills contribute to perpetual poverty of the unfortunate. Our company will use vinyl banners to make low-cost raincoats for underprivileged children and adults (mainly rickshaw pullers). To ensure affordability of the suits and raincoats, the business model includes high-margin products (premium raincoats, umbrellas and car sunshades) using the same raw material to offset the subsidization of the low-cost products.

The premium products will be sold to high end customers through various superstore chains like Agora, Shwapno, Lavender etc. The team is yet to get in contact with these stores. The team plans to set up small dedicated booths with one or two sales agents whose duty would be to grab the attention of the customers and tell them about Safe-Thee Solutions about how it is addressing the needs of the underprivileged and how they can help by simply purchasing one of its premium products. The customers will be made well aware of the cross-price subsidization scheme so that they can justify the high prices attached to their purchases.

Financial Projections

In the first few years, we plan to outsource all our manufacturing to established factories in the country. Therefore the initial start-up cost will be very low. The only cost needed to start the business is as follows:

Table 1:

Manufacturing cost/unit Units made Total cost Protective suits 100 1000 100000 Raincoats (Rickshaw pullers) 80 1000 80000 Raincoats (school children) 100 1000 100000 Bags 100 1000 100000 Total 380,000 The units will be sold, and the expected revenue is as presented in the table below:

Conscious shoppers Units made Selling price/unit Mark-up Revenue Handbags 2400 500 233% 1200000 Totes 1800 450 246% 810000 Car sun shades 1800 700 367% 1260000 Umbrellas 600 500 100% 300000

For the current prototype testing phase, the team has funded some of the operation cost from their own individual bank accounts. The rest came from the sale of the premium raincoats. For a start-up, perhaps the toughest challenge is to secure funds. The Safe-TheeSolutions team is working hard towards that goal to scale up the business model. The business plan has already been submitted to the Small Medium Enterprise Foundation_x0092_s (SMEF) National SME Business Plan Competition and is awaiting a reply from them. These institutions fund businesses that they feel can make a difference in the society.

For this reason, the following are sources of capital for the startup:

i. Equity: 30,000

ii. Loans: 300,000

iii. Others: Grants from foreign institutions: 120,000

iv. Total: 450,000

Consequently, the expected sales forecast is as shown in the table below:

Table 2: Sales Forecast for Safe-Thee Solutions

MONTH Sales ($) TOTAL January 150,791.67 150,791.67 February 150,791.67 150,791.67 March 150,791.67 150,791.67 April 150,791.67 150,791.67 May 150,791.67 150,791.67 June 150,791.67 150,791.67 July 150,791.67 150,791.67 August 150,791.67 150,791.67 September 150,791.67 150,791.67 October 150,791.67 150,791.67 November 150,791.67 150,791.67 December 150,791.67 150,791.67 TOTAL 1,809,500 1,809,500 2018 2,229,500 2,229,500

Operations Management

To ensure the affordability of the products, the team understood a steady supply of free banners was vital. The team has contacted several organizations (Unilever, Channel I, Rahimafrooz, 7teen Events, Live) who have pledged their idle banners to the team. Measurements for different products are already available and this can be used to estimate the amount of banners needed to make the desired number of products. This ensures that the firm can stock up on its supplies if it fears future supplies to fall short of demand. Other raw materials like bamboo and decontaminators are easily available in the market and will be sourced by the consigned manufacturers.

It is vital that the supply of banners keep up with its demand. To ensure smooth supply of banners, a warehouse needs to be employed so that the company never loses out due to a supply crunch. The core business idea revolves around the supply-chain and warehousing is the key to ensuring a reliable source of raw materials for its products.

The team intends to work closely with the municipality to develop a safety guideline for waste management. promotional efforts for the products. To attract the socially-conscious buyers, the team is targeting supermarket Awareness and immunization campaigns with the help of local NGOs will also serve as chains. To ensure maximum awareness of the company_x0092_s business model (Shop for a social cause), the Safe-Thee team is currently creating a marketing video. The video will be an essential part of the company_x0092_s website and the team plans to launch the company website as soon as the video is finished.

To ensure proper recycling of the products the firm will have a systemized tracking system so that any defects in the products can be dealt with as swiftly as possible. The firm plan to offer life time warranties for its products so that the vinyl banners are constantly recycled thus ensuring they do not end up in landfills.

Human Resource Management

The human resource manager will be John Wright. He is an IBA graduate best known for his prowess as an athlete. He has won numerous athletic distinctions and has also participated in an international level. As a devout environmentalist, Wright has been an active participant and supporter of several lake and street-cleaning drives. His devotion towards the mitigation of social problems directed the team towards its current goal. Wright used to oversee the finance department of 7TEEN Events _x0096_ a popular youth-based event management firm in the country.

The other general manager is Mark Coope. He has an MBA degree and has been doing his bit for the society. He regularly participates in winter clothing drives and is a registered blood donor. Coming from a family of entrepreneurs, Coope added his invaluable networking skills to Safe-TheeSolutions, and his perseverance, hard work and analytical ability has added a new dimension to the partnership. Coope has worked with a school for the disabled called Green Disabled Foundation and is currently an English Language teacher at Mentors_x0092_ Education where he teaches students preparing for university entrance exams.

The team has had significant exposure in running the project. Safe-Thee Solutions is not assumed to be a hypothetical business; rather every single element of this project is thoroughly thought-out while keeping feasibility and implementable quality as the first priority. To keep the focus on the core values of the project the team has decided to outsource the manufacturing process for the first year of operation.

Protecting Intellectual Property

The following are four intellectual properties that the Safe-Thee Solutions has and how they will be protected:

Copyright- This is a type of protection that is provided by the law to an individual or entity purposely for original works produced by the authors.

Trademark- This is a logo, word, phrase, or other graphics symbol that provides a distinction for products of one organization to another and also differentiate companies, organization etc. The law protects it.

Patent- This deals with innovation and discoveries of an individual and thus the law protects such innovations and discoveries.

Trade Secret _x0096_ This is all about confidential information in regard to method, design or process which a manufacturer uses to either market or Protection against Competition

Key Risk Factors

Most of the products will be made from discarded advertising banners which will be sourced for free from various advertising and event management firms. Concerns have been raised as what would happen if there is a shortage of banners. Firstly it must be noted that the whole business idea revolves around two key aspects: (i) Helping the underprivileged (ii) Recycling environmental wastes. This means that the recycling process is one of the key elements of this social business. The company would consider the business to be a huge success if it can convert all the discarded banners into useful products. This will inadvertently mean that there are no hazardous materials lying around to adversely affect the environment. But in reality this is not possible as hundreds of advertising banners are made daily to meet the ever growing demand of billboard advertisements.

Secondly the team has estimated the amount of banners it needs for any given month with its current production budget. The amount stands at 56 banners per month with the average size of banners being 10*15 ft. But in reality there are lots of banners bigger than this and thus the number of banners required will be less than 56. Moreover 56 banners per month is an insignificant amount compared to the number of banners made on a monthly basis. Therefore the team can assure the concerned that the possibility of running out of banners for production is very low.

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References

Baltina, Ilze, Vilumsone, Ausma, Tarasenko, Anna, & Silina, Liene. (2017). Fabric selection for work wear during procurement procedure. Rezekne Academy of Technologies.

In Muthu, S. S. (2017). Textiles and Clothing Sustainability: Sustainable Fashion and Consumption. Singapore : Springer Singapore : Imprint: Springer.

In Prentice, R., & In Neve, G. . (2017). Unmaking the global sweatshop: Health and safety of the world’s garment workers. Philadelphia : University of Pennsylvania Press.

Ravindra, K., Kaur, K., & Mor, S. (January 01, 2016). Occupational exposure to the municipal solid waste workers in Chandigarh, India. Waste Management & Research : the Journal of the International Solid Wastes and Public Cleansing Association, Iswa, 34, 11, 1192-1195.

Thomas, C. E. (2012). Process technology: Safety, health, and environment. Clifton Park, NY: Delmar Publishing.