Rosafarbenes Nilpferd & Sons Engineering, Inc provides specialized components to high-tech manufacturers. The company is expecting rapid growth due to current market demand, which is growing at a rate of 22% annually. Their electronic engineering business plan projects sales to exceed $14 million by the end of the third year of operation. By maintaining a small "Think tank" technical team and outsourcing manufacturing, the company will develop cutting-edge Product Category 1 solutions for appliance and equipment manufacturers who are under pressure to get products to market quickly. The electronic engineering sample business plan calls for a line of credit between $150,000 and $200,000 to support growth in assets, half of which will be prime corporate receivables. RNSE has already established a strong foothold in this market and believes that rapid growth is virtually assured.
Rosafarbenes Nilpferd & Sons Engineering, Inc. (RNSE) has established a strong foothold in a niche technology market for Product Category One* devices. The potential market demand of 180 million units far outstrips the capacity of present suppliers and is growing at a rate of 22% annually. RNSE's success in taking advantage of this boom market is evidenced by its recent growth in sales and profitability. Sales are projected to grow from the first quarter of Year 1 total of $280,000 to $1,600,000 by the end of the first year, and to exceed $14 million by the end of the third year of operations. A similar growth pattern will cause before tax profits to rise significantly by the end of Year 1 and continue increasing through the end of Year 3. These results will be achieved without large additions to fixed assets. A relatively small banking facility will be needed in the form of a line of credit of $150,000-$200,000 to support the necessary growth in current assets, half of which will represent prime corporate receivables.
*Note: Propriety and confidential information has been disguised or removed from this sample plan.
While working to develop Rosafarbenes Nilpferd & Sons Engineering's image as the premier maker of Product Category One devices with the latest cutting-edge technology, the measurable objectives are:
Complete work to make RNSE's products compatible with at least five of the most popular first-tier operating systems (by end Month 5, Year 1), and at least three others within one year.
Complete a thorough website redesign and get out a quality mailer to 300 Value Added Resellers (VARs) (by end Month 6, Year 1).
On the basis of a professional media analysis, arrange an effective advertising campaign in trade publications designed to target the telecommunications, industrial automation, and instrumentation sectors (by end Month 7, Year 1).
Through networking and partnering with operating system developers, technology manufacturers, and other industry players, arrange at least five banners/links on a reciprocal basis with key market-related websites.
Rosafarbenes Nilpferd & Sons Engineering's mission is to develop cutting-edge Product Category 1 solutions for appliance and equipment makers who, due to the fast pace of technology, are under pressure to get their products to the market quickly. RNSE achieves this by maintaining a small "think tank" style technical team, outsourcing the manufacturing, and keeping a marketing offering which caters to the more demanding Product Category One requirements, leaving the simpler high-volume and price-sensitive market needs to the competition.
Note: Proprietary and confidential information has been disguised or omitted from this sample plan.
1.3 Keys to Success
The demand and growth potential is so overwhelming that success in selling Product Category 1 devices is virtually assured provided a few key aspects are kept in mind:
There is no problem in contract manufacturing the devices, provided a ready stock of components is available. Careful planning in ordering sensitive components is essential, and sufficient financing must be in place to support long inventory periods.
Avoid time-consuming inquiries originating from outside the chosen market targets. Everyone is interested in Technology 1. It is important to weed through the inquiries and respond to those that fall within sales and marketing parameters (needs between 100 and several thousand units, designed for use with high-ticket sophisticated equipment).
Move quickly to build a brand awareness for cutting-edge reliability. The market need for Product Category 1 devices is potentially so large that more competitors can be expected. It will be more difficult to build an image later.
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