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Youth to Business Enterprise

Business Plan
INSECTILASER
By students from:
Szkoła Podstawowa w Święcanach,
Poland

London, 5th June 2018

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
Content

1. Our business and our team


2. The business
3. About us
4. The product
5. The market
6. Start-up costs
7. The competition
8. Marketing mix (4Ps)
9. Back-up plan
10. Total capital required (Loan request)
11. Appendices

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
4. Our business and our team

1.1. Business Name:


INSECTILASER
1.2. Our Y2BE team:
We are a team of students who have worked on the project from the very beginning:
Bęben Julia Jasiczek Anna
Borek Dagmara Kamień Dawid
Brewczyńska Jowita Kędzior Magdalena
Brudnik Dorota Kozioł Zuzanna
Depczyńska Julia Lisak Dawid
Dyda Anna Musiał Marcelina
Dyląg Lidia Niziołek Paulina
Filipak Zuzanna Rozmus Wiktoria
Gębarowska Aneta Siuta Przemysław
Gotfryd Patrycja Sokołowski Dawid
Gruszka Karolina Więcek Konrad
Halerz Emilia Wójcikiewicz Gabriela
Jarkiewicz Maria Zając Patrycja

Our students’ team is supervised by our school Erasmus+ project coordinator:


Mr Artur Gruszka
and the school principal:
Mr Bogusław Kręcisz
As well as a team of supporting teachers:
Ms Ewa Maciejczyk-Gąsior
Ms Dagmara Skubel-Wenc
Ms Magdalena Zając
Mr Mirosław Pawluś
Mr Krzysztof Radlinski
And other staff members from Szkoła Podstawowa w Święcanach (the primary school in
Święcany).
1.3. Business Location:
Święcany, Poland
The business idea is to locate it in our home village in order to promote it and help it develop
in future. The village possesses proper buildings, adaptable to our business needs.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
1.4. Our address and postcode:
Święcany 1,
38-242 Skołyszyn
Poland
1.5. Business telephone number:
+48 436289094
1.6. Email address:
insectilaserpoland@gmail.com
1.7. Business Start Date:
1st January 2019
1.8. Business website and social media links:
www.insectilaser.com
FB: insectilaser.com
Twitter: insectilaser

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
2. The business

2.1. Summary of the business:


An overview of what we are going to do and how we are going to do it.
As a group of students we have created an idea of a product, which we called INSECTILASER, which
will protect houses (buildings) against mosquitoes and insects flying into them. Our intention is to
introduce this innovative device into the market following steps described below.
We are going to manufacture the device ourselves using some semi products purchased from their
manufacturers i.e. lasers, sensors, bodies.
At the beginning we will be manufacturing and selling our INSECTILASER in our local area, but we
intend to gradually expand our activity. Our target is to develop the company, first into a nationwide
enterprise, with further plans to develop into a worldwide known trade mark. We are certain to be
successful as we have a patent for our device, which is unique on the worldwide scale.

2.2. INSECTILASER’s description:


Our product and our business will have the same name: INSECTILASER. We intend to build a well-
recognised trade mark with that name which would immediately picture our universal device
protecting people against insects.
Having the know-how and the product prototype we want to rent existing offices and a production
hall from our local commune, who already have suitable structure. Our advantage here would be
possibility to receive some local taxes reduction in return for giving employment to local people and
promoting the region. What is more we can rent those buildings from the commune paying monthly
rent and not having to purchase the structure on start.
Having the company’s place of business located in our commune and assembly plant equipped we
intend to employ ten people in total at the beginning (3 office workers, 2 drivers and 5 assembly
workers). Our break even calculation presented below shows we are able to successfully start
production and introduce the product to the local market. Our business manager will be our project
coordinator who helped us develop the product idea and has necessary knowledge to run a business
of this type. The other two office workers will be a software specialist and an accountancy and
marketing manager. The other employees will be responsible for product assembly and delivery to
the customers or wholesalers.
The company’s structure will further be developed together with its growth and needs.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
2.3. INSECTILASER’S selling strategy
Our initial idea is to produce 200 INSECTILASERS per day and during first month we don’t sell our
product, but we prepare distribution. We are planning to distribute our product on the local market
first. The company management contract out preparation of advertising campaign with
a professional advertising agency. The idea of the campaign should be targeted at universal
customer even if at the beginning it is used in local environment. It will allow us to minimize costs
in the future when the company develops. Therefore it should be a multimedia advert. We should
start the campaign and selling in spring period when insects start appearing and flying into houses
Together with beginning the advertising campaign in local media and on the Internet (e.g. Facebook)
we offer our INSECTILASER to local wholesalers and shops. We also sell to our acquaintances
(friends, families, neighbours etc.). We are certain that they will see how effective the device is, and
they will further recommend it to other people.
Our next steps will be to increase the number of devices on the local market and to start offering it
in more distant parts of our region and beyond it. Together with the sales and distribution growth
we will need to increase the volume of our production and to start employing new workers, both in
production department and in sales and marketing department. This is also the time when we
spread our advertising campaign all over our country.
We will also be selling on the Net in most popular e-shops in Poland and worldwide. Therefore we
are further planning to open a distribution centre in a big city near our place, which has an airport.
That centre would serve whole Poland and the world. Krakow appears here as an obvious choice.
In order to increase our sales we will start offering our INSECTILASER through various promotional
actions like „Buy two devices, get third for free”. We however believe that best promotion would
be to show our device in action. Therefore we might start offering certain shopping centres, chains
free protection against insects or at reduced prices in return for advertising and selling our product
at special actions. We think that a potential customer shopping at a butchers or confectionery will
easily notice that there are no insects around in places where they are very commonly found,
especially when they see an ad informing how the place is protected.
We also want to promote the INSECTILASER worldwide, especially in countries where they have
problems with insects like mosquitos. We are thinking about tropical regions with rainforests, or
Africa where mosquitos or flies can spread dangerous diseases. That’s why we will prepare ads in
most common languages typical for those regions. We will advertise in English, Spanish, Portuguese,
French and most probably in Arabic and we will fit the ads to most typical situations in those
countries.
2.4. Our business mission.
Our business mission is to launch a new, innovative and totally safe product INSECTILASER on the
market and to make it famous among people all over the world because of its high effectiveness in
protecting houses and people against irritating insects. We would like to coin a new word in the
English dictionary, which would tell the meaning and immediately picture the INSECTILASER itself.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
2.5. Our business vision. Where will the business be in one, three and five years? Our SMART
(Specific, Measurable, Achievable, Realistic and Timely) idea.
After year one:
We expect our business to be well recognised in local area in south eastern Poland producing and
selling around 200 units per day both in regular shops and online.
After three years:
INSECTILASER should be well recognised and sold in the whole of Poland. Our business will have
developed into a medium size company employing around 25 people and selling around 700 units
per day both in regular shops and online and preparing for international expansion.
After five years:
INSECTILASER’s trade mark should be known worldwide with sales exploding to unpredictable
volumes. Need to open manufacturing centres in foreign countries may appear in order to meet the
market demands. Concrete numbers are difficult to predict at this stage.
2.6. What sets this business apart from the competition:
Now, our INCECTILASER is the only product of this kind on the market. There are products to fight
against insects in our houses such as: fly flaps, repellents or mosquito nets, but they are
uncomfortable, impractical and often ineffective. Our product is quite different. It is active and
guarantees full effectiveness, low susceptibility to destruction and it is very easy to use and
assemble. It is not expensive and is made of good quality materials. It is practical and modern,
efficient and it has many purposes: it can be mounted in the windows, in the doors, on the balcony
and in the tent, which gives reliable protection in all conditions. INSECTILASER is the best and unique
device to fight insects flying into houses created by humans so far. We would say it is an extremely
convincing product! No other company has a similar product. Its pricing makes it very competitive,
especially as it is a product for life and customers don’t need to buy a new one when the old one is
used or worn out.
2.7. Our business’ staff.
The company manager will be our project coordinator Mr Artur Gruszka, who will organise whole
company’s structure. At the startup time it will employ 10 people altogether.
Sales and marketing department – 3, Assembly department – 5, Distribution and delivery
department - 2
Together with company’s development on second stage we expect it will have approx. 25
employees, who will be working in the following departments:
Assembly department – 8
Software department - 2
Sales and marketing department - 5
Distribution and delivery department - 5
Design and product development department – 3
Service and maintenance department - 2
Further development will result in adaptation of the company’s structure and growth of assembly
department including new equipment purchases.
This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
3. About us

3.1. Why do we want to run our own business?


We want to start our own business because we see a high chance for its success. We have an idea,
a concrete plan and many possibilities to develop our business. INSECTILASER has a chance to
change human life in many parts of the world, it can be a global business. This product can bring
fame to us, and we do hope for the success of our plan. We are sure that it can also bring us huge
profit. Thanks to the support and help of our incredibly project devoted manager, we are certain to
achieve our goals.
3.2. Previous work experience:
We are a young team, so it is our first time when we are starting a real business. We have however,
learnt a lot about business, because we are a part of the Erasmus+ project entitled “Youth to
Business Enterprise”. It has been a great experience for us and our project coordinator and future
manager is a highly experienced person, who has managed a number of EU financed projects and
has proper training in human resources management as well as in public institution management
confirmed by proper certificates.
We will also require proper work experience from our employees respectably to the department
where they would be employed.
3.3. Our personal information relevant to this business:
We are a team of young people with creative and entrepreneurial ideas willing to put those ideas
into life. Being properly guided and trusting our management we feel enthusiastic about our
product, seeing a great opportunity just for the taking.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
4. The product

4.1. INSECTILASER’s description.


Our INSECTILASER is a very universal device protecting houses against insects flying into them
through open doors or windows. It consists of two separate parts, one is the sensor and range
limiter, and the other one is the laser device. When mounted in window or door frames it the sensor
detects vibrations of the insects’ wings, recognises the insects, and communicates with the laser
unit, which using invisible laser rays keeps the invaders away from our interiors. It shoots only when
certain vibrations are detected and stays alert in all times. In this way it is safe for all other animals
and people. It is battery powered. It can be used to protect houses, public places, shops, tents or
even factories. Its possibilities to use are only limited by our imagination.
The graphics shown below presents the device itself and the idea of its functioning:

Vibration detector Laser unit


and range limiter

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
4.2. How will INSECTILASER be produced?
We are going to manufacture the device ourselves using some semi products purchased from their
local manufacturers i.e. lasers, sensors, microchips. In this way we avoid purchasing expensive
equipment necessary for production of those items. Having necessary knowledge our workers will
produce and assemble certain elements into the final product and install necessary software.
Therefore our manufacturing process will somehow be similar to a car production where some
elements are ordered from external suppliers and some other are produced and developed in the
plant itself. There will be live cooperation with those suppliers who can adapt to changes in our
designs and other requirements.
Elements, which will be purchased from external suppliers:
• Laser units with invisible beam, microchips for range limiter – LAser Man from Jasło,
• Motion sensors – SenseIT Co. from Gorlice,
• Elements, which will be manufactured by our company:
• Unit cases, optical parts, integrated circuits, power supply elements, moving parts,
software and installation

4.3. Manufacturing costs.


Our breakeven cost calculations presented below show that we are able to produce INSECTILASER
at the cost of 15 EUR per unit. That includes both variable and fixed costs of approx. 3500 units per
month. Here are our cost tables and calculation:

Variable cost EUR


Plastic bodies 1500
Electronic parts 12000
Wrapping 1500
Documentation 500
Energy 2000
Fuel 1000
Shipping 3000
Advertising 2000
Marketing 1000
Website maintenance 1000
Employees’ training 500
Bank services 200
Machinery service 500
Car service 500
Total 28700

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
Fixed Cost EUR
Office furniture (monthly instalments) 100
Office equipment (monthly instalments) 250
Machinery and workstations equipment (monthly instalments) 1500
Property rent (office and assembly plant monthly rent) 1000
Employees - salaries 20000
Insurance 200
Local Taxes 100
Cars leasing 1000
Total 24150

Total monthly cost:


Fixed cost + variable cost
24150 + 28700 = EUR 52850
Number of items we need to produce and sell per month to get EUR 15 per unit.
EUR 52850 / 15 = 3524
Number of items we need to produce and sell per day to get EUR 15 per unit. We assume there
are 21 working days in a month.
EUR 3524 / 21 = 168

4.4. INSECTILASER’s selling price.


We estimate the selling price on the market at the level of around 25 EUR per unit assuming that
we produce and sell approx. 3500 units per month. That includes sales brokers’ costs.

4.5. Product delivery.


Depending on the selling channel INSECTILASER will be delivered:
To regular shops, by local or regional household wholesalers or by our own delivery system
(company vans) depending on orders’ volume.
To online customers, on purchaser’s choice, by post, couriers directly from our own warehouse.

4.6. Legal requirements to start this business.


All we need to do is to have the company properly registered in our country and pay required taxes.
The product itself doesn’t require any legal permissions to be sold. Only product safety certificates
(CE) are required like for any other products on the market and they will be obtained concurrently
with patents.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
4.7. Insurance requirements to start this business.
Like every company, we need to have a civil liability insurance, which however is not required as a
must in Poland. Insurance is already included in our fixed costs.

4.8. INSECTILASER’s growth potential.


We see a very high growth potential of our product as it is a unique device not present on the market
yet, which meets many potential customers’ expectations. Our market research shows that almost
66 % of them would definitely buy our product if the price is at the level of around 20 EUR per unit.
They declare buying one or more devices.
We are strongly convinced that those who experience the product in action would decide to buy
more units in order to completely protect their houses and mount them in all windows or doors
kept open for longer periods.
Proper advertising and marketing campaigns combined with the products high effectiveness make
us certain that the product actually fills a gap in the market and its sales will be growing really quickly
especially in regions where irritating insects are frequent “guests” in people’s homes.
We also see high potential in the food industry, where companies, shops may wish to protect their
spaces where food is stored against insects, especially as our method is much cheaper than those
used so far and doesn’t require the use of any chemicals or ineffective but expensive devices. Our
device doesn’t need to attract the insects by light or smell. It fights all of those being in the device’s
range.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
5. The market

5.1. Typical customer


Our customers are all house owners living in regions where insects flying into them are unwanted
“guests”. Our main focus would be on customers suffering from mosquito bites received at their
properties. Generally they live in the whole of Europe, especially in humid regions (including Poland
– our home country) and in most countries around the world. They will also be tourists travelling to
places where mosquitos can be found who will need to protect their tents or shelters against them.
In the future we expect high interest from the food production industry as it was mentioned above
as well as from all other branches interested in protecting their spaces against those unwanted
invaders.
5.2. How many of these customers will INSECTILASER have the potential opportunity to
reach?
Our answer to this question is: All of them. We expect higher interest in our product than Facebook
has now as not everyone wants to be there, but everyone will want to be effectively protected
against irritating insects. Here they don’t have to show their identities. The only limitation here is
effectiveness of our advertising campaign and the product effectiveness itself. Since we are sure
that INSECTILASER is effective we are sure it will find its way to all people’s homes.
5.3. Have we sold any products/services to customers already?
Since this is a product created within the Erasmus+ project and we are a team of young students
supervised by our teachers, we must admit we have not sold products to customers yet, but we
believe that with the experience of our employers and investors we will be able to effectively sell
our product.
5.4. Why will customers buy INSECILASER instead of our competitors?
There are no businesses in the market offering similar products ensuring full protection against
insects flying into houses. Some other potential competitors offer products using various chemicals,
which have their negative influence on the environment and are of poor quality and effectiveness.
Generally there is a need to buy new products as those get worn out or their life time expires. That
means continuous spending money on those products. In the case of INSECTILASER you buy it once
and enjoy full protection for life. The only thing you need is to change batteries or have the device
connected to regular power supply. We guarantee the best quality and the product is made with
the best materials. So why buy ineffective and money draining products? Our customers should
know the answer.
5.5. What can be learned about the business’ market from an internet search / primary and
secondary research:
Having searched the internet we know that you cannot find a similar product anywhere in e-shops.
There is also no similar product in the regular market either.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
6. Start-up costs

6.1. What start-up costs must be considered


All our start-up costs are shown in tables in 4.3 above and they reflect our break-even price
calculation. We listed equipment to be purchased there too.

6.2 What is our selling price?

We estimated our selling price at the level of 20 € per unit and this is the price we are able to sell
our product to wholesalers and shops, which is bringing us profit of around 5 € per unit.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
7. The competition

We have mentioned above that there is no business selling a similar product anywhere in the world.
All our potential competitors sell different types of products protecting against insects, which are
ineffective and either use chemicals or passive protection methods. It is impossible to list all
mosquito nets or insecticides and repellents manufacturers. Our device is active (checks for insects
presence), and in this field we know no competitors.
Competitors selling passive protection methods can however be big businesses operating
worldwide, like Johnson & Johnson who sell various repellents. This company might be interested
in taking our business over, but we are not considering this possibility now. They don’t have a patent
for a similar device.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
8. Marketing mix (4Ps)

Product Price
brief summary of INSECTILASER What is our selling price?
EUR 20
Our INSECTILASER is a very unique device
protecting houses against insects. Mounted in Why have we chosen to sell at this price?
windows or doors detects vibrations of the insects’
wings and using laser rays keeps the invaders away We think that this price is suitable for our
from our interiors. product. It is the new one on the market, so this
price is approachable. This price include
Our logo: production costs and our profits.
We haven’t got a proper logo yet. We want to
make a competition choose the best one.

Place Promotion
Where do we plan to sell our product? How will you market and promote your
business?
Together with beginning the advertising campaign
in local media and on the we will offer our We will use the most common and easily
INSECTILASER to local wholesalers supermarkets accessible media – television and the Internet.
and shops offering household goods. We will also We believe that when people see our
sell to our acquaintances (friends, families, INSECTILASER in action, it will be more
neighbours etc.) We are certain that they will see convincing than any other printed ads or
how effective the device is, and they will further announcements on the radio.
recommend it to other people.
Our next steps will be to increase the number of We will promote our product on the Internet-
devices on the local market and to start offering it social media (e.g. facebook, instagram) and on
in more distant parts of our region and beyond it. our website too. We will advertise it on TV and
We will sell our product in the Internet and in the radio.
local market.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
9. Back-up plan

9.1 What do we plan to do if our business fails?


We do not expect our business to fail. If however it did fail we are able to reorganise our business
and try offering our device in cheap and effective home alarm systems as our vibration detector can
also be a perfect device detecting attempts of entering homes by any unwanted guests.

9.2 How will we afford our loan re-payments if the business fails?
Our business is not the one which demands very high investments and loan at the same time. We
think we are able sell our equipment to some other business in order to reduce our losses. We can
stop renting the offices and the production hall. The remaining sum to re-pay the business should
not be high in this situation, and since we are a team of partners we are able to share the cost among
us. That will make an affordable sum of money per person.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
10. Total capital required (Loan request)

We expect that the capital required to open the business and allow it to function on the market is
an equivalent to the sum necessary for first three months of work. Our break-even calculation
shows that we need around 52 000 euros per month. That means we need around 150 000 wuros
of capital investment.
We are able to invest a third of this amount from our own budget.

10.1 How much loan do we need?

We need 100 000 Euro of loan.

10.2 Why do we deserve to be given the loan?


We deserve to be given the loan because there isn’t product like ours on the market. We are filling
an existing gap there, which guarantees high chances for success. Our potential competitors do
not know the product and are not able to use our idea as we are the patent owners.
We have necessary skills, knowledge and potential.
Market research shows an existing high demand for our product.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
11. Appendices

Here are some graphs showing results of our market research confirming high demand for our
product.

This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services
This project is realised with the financial support received from the European Commission within the Erasmus+ Programme. The content of the
publication is the sole responsibility of its publisher(s), and it in no way represents the views of the European Commission or its services

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