One Step Home Brewing Kit Essay

There are a lot of home create from raw stuff kits available in market further all have a typical problem associated with it. We have come with a cutting bingle Step Home Brewing Kit based on our patent technology. Soon we plan to launch it in market. We did a market search for such yield and gained a lot of valuable information. Based on all those observations we have come with the following plan. We would be operating by internet instead of setting up a shop for it, at least for the initial phase. Not only it reaches to more people besides overly is more convenient to operate.We wont run the website ourselves but would outsource to a separate lodge. Our research shows that outsourcing would be cheaper. We have finalized our hosting company and hosting plans. The initial one(a) epoch make up comes to be around $10,000/-. Regarding our financials For the kickoff calendar month our primary tar hail is set our infrastructure right. We need to get comfortable with the se tup, optimize our settings. So, for the first month we wont be spending much on advertising but would mainly trim down on our acquaintance and word-of-mouth publicity to get our customers.We have kept a modest sales target of 100 units. Each kits interchange price would be $30/-. Cost of revenue is assumed to be 45% of revenue. Biggest expense during this time would be of setting up the website which includes one time cost of website hosting, web designing and taking photographs of our growth. The setting up process leave behind take around 20 -25 days. From the last hardly a(prenominal) days of the month we would increase our advertisements and also would put user experiences of our product on the website.Rough estimate shows a loss for the first month which is very well expected at the beginning of a credit line firm. In the second month we expect sales of around cholecalciferol units. This increase is expected due to increase in our advertising and the optimistic feedba ck given by our customers for our product. We ourselves have no doubt that our product is dress hat and hence expect strong positive atmosphere for our product in the market. To cater to this change magnitude need we would need to purchase a impertinently computer and hire an operator for that.The New systems cost is put in office equipment expenses field. This would increase our staff from 1 to 2. We also would have to cause in those positions to curtail our staff requirements For the third month we expect sales of around 800 units and hope to induce a new staff and a new computer to keep up with our increasing customer visits and their database. We hope to reach our break even point by the end of 3rd month. For the next quarter we hope to keep a calm speed and again check our system and get the work boundaries of everyone more finer.We would take one more employee at non technical position. For 3rd quarter we again expect a rapid increase in our sales due to the previous quart ers corrective steps. We bequeath introduce a new staff in our team to concentrate specifically on our advertising. So our advertising cost reaches an all time high. For final quarter we hope to keep up this good trend. For second year we will cause to outsource whatever of our processes like dispatching, packing material etc. so that we focus more on our core competence i. e. our product.We will also try to start R&D around our product. This will help us bring out well-nigh new product. We will first be looking to bring some product that would complement our product. Also we whitethorn venture out in new areas if they seem perfect for our conditions. Our Rent is going to increase by 20% In 3rd year we will double our infrastructure. This may be for our new product or to keep the increased tidy sum of sales of our existing product. This year we will definitely setup our R&D if they are not setup to the full consequence in the second year.As the world is progressing fas t in technology fields and future would hold golden days for technology products. We will surely bring some product in this domain. Our core product would of course be always our focus and we will always try to better it. As we move past the expected milestones we would surely be getting more experienced and will fine tune our expenses, recollect our staff to specific positions. This is our plan till now and we hope to cash in ones chips it every month, quarte