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Electronic Engineering Business Plan

A complete business plan for Rosafarbenes Nilpferd & Sons Engineering, Inc.

About this business plan

Rosafarbenes Nilpferd & Sons Engineering, Inc. is an established electronic engineering firm designing and providing specialized task-oriented components to the high-tech computer appliance manufacturing market. A relatively small bank line of credit is needed to support the necessary growth in current assets, half of which are prime corporate receivables.

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Executive Summary

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 2000 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 2000 and continue increasing through the end 2002. 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.

1.1 Objectives

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 May 2000), 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 June 2000).
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 July 2000).
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.

1.2 Mission

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 One 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 One 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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