SMART BIN JusBin Pte Ltd - Business Plan

Address: Nanyang Technological University 50 Nanyang Avenue, Singapore 639798

Phone: (65) 6790 5568 Fax: (65) 6792 5003

JBresponse@JB.sg

Business Plan

Table of Contents

I. Executive Summary ............................................................................................... 3

II. Business Description ............................................................................................. 4

The Industry ......................................................................................................................................................... 4

The Company ....................................................................................................................................................... 4

Our Product .......................................................................................................................................................... 5

III. The Market ............................................................................................................ 8

Competition .......................................................................................................................................................... 8

Our Customer....................................................................................................................................................... 8

Our Position ......................................................................................................................................................... 9

IV. Management ......................................................................................................... 10

Current Organization Structure ....................................................................................................................... 10

Management Team ............................................................................................................................................ 10

V. Development and Production .............................................................................. 12

Development Status .......................................................................................................................................... 12

Production Process ............................................................................................................................................ 13

Make or Buy ........................................................................................................................................................ 14

Location ............................................................................................................................................................... 14

Labor Requirement ............................................................................................................................................ 14

Cost of Production and Development ........................................................................................................... 15

VI. Sales and Marketing ............................................................................................. 17

Pricing .................................................................................................................................................................. 17

Estimated Sales ................................................................................................................................................... 17

Sales and Marketing Strategy ............................................................................................................................ 18

Method of Sales .................................................................................................................................................. 19

Advertising and Promotions ............................................................................................................................ 20

VII. Financials .............................................................................................................. 21

Risks (what risks are there and how to overcome them)............................................................................. 21

Assumptions Made ............................................................................................................................................ 21

Start-Up Expenses ............................................................................................................................................. 22

Balance Sheet 2016 ............................................................................................................................................ 22

Profit and Loss (Income) Statement ............................................................................................................... 23

Breakeven Statement ......................................................................................................................................... 24

Cash Flow Statement ......................................................................................................................................... 25

Business Plan

VIII. Funding Request and Return .............................................................................. 26

IX. Miscellaneous Documents .................................................................................. 27

Appendix 1: ......................................................................................................................................................... 27

Appendix 2: ......................................................................................................................................................... 42

X. References............................................................................................................ 44

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Executive Summary

JusBin (JB) Pte Ltd is a start-up company based in Singapore. Founded by a team of eight engineers

from Nanyang Technological University (NTU), JB aims to introduce smart technologies to improve

waste collection methods and reduce its manual effort required. Inspired by real life working

experiences and as frequent diners, the SmartBin was created to alleviate difficulties faced by

cleaners as they manually compact and replace rubbish at fast food outlets.

A survey was conducted amongst cleaning staffs and we found that they faced the following

difficulties in their course of work as enumerated:

The current tool used for crushing and compacting waste was inefficient and requires large

amount of effort to effect significant volume reduction

Manual checking of each dustbin have to be carried out by staffs to know if the dustbins

are full and are in need of replacement

The SmartBin provides a comprehensive solution to the above problems with additional

complementary features. We propose to present the SmartBin in three financial phases:

1. A pilot project with a $5,000 start-up grant from NTU will be launched within the NTU

Campus to assess the effectiveness and usefulness of SmartBin before its introduction into

the industry.

2. Additional capital from sponsors and crowd-funding of $100,000:

a. Purchase of addition equipment required for effective production

b. Training and hiring of production personnel

c. Developing the market through collaboration with fast-food chains to introduce the

SmartBin

d. Sales and marketing enhancements

3. Increasing sales, production and reach

a. Automate production process

b. Alliance with National Environmental Agency and non-profit organization like Zero

Waste Singapore ( With the aim of making our bins more environmentally friendly)

c. Expansion of marketing strategies globally

Furthermore, up to 20% of revenues earned after Phase Two will be spent on research and

development of new products and innovations. 10% of profits will be returned to investors. JusBin

aims to optimize logistic resources in the waste management industry by improving efficiency, and

reducing collection and delivery costs.

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Business Description

The Industry

Integrated waste management systems are on rise in recent years. Fueled by growing interest in the

Smart Nation Singapore Initiative [1], info-comm technology along with its networks and data

continually strives to support better living and more efficient solutions for a wide range of day to

day activities. As an important part of a clean and green Singapore, “smart” waste management

solutions were highly sought after by authorities and with contracts up to $1.5million [2].

Opportunities and support from the Initiative in the waste management industry fosters a healthy

environment for growth, with increasing focus placed on the greater use of communication and

sensor technology in the field.

Local companies have developed integrated systems in improving waste collection processes and

planning, which puts us in direct competition with. A pilot project by Mobiquest [3] was green-

lighted by the National Environmental Agency to install and manage a system of over 10,000 bins

island-wide, including 250 bins with sensors that can track the amount of trash within. Furthermore,

the long-time trash bin supplier for the NEA, Otto Waste Systems [4] has begun testing out Clean

CUBE bins in public areas such as Community Centres, Changi Airport and the Sports Hub.

Furthermore, there are growing trends of foreign companies from South Korea [5] and Ireland [6]

that have also worked towards providing innovative technological solutions to tackle waste

management problems. This goes to show the potential growth in the burgeoning market in

Singapore and beyond.

Within the industry itself, it seems that there is little focus on waste management within commercial

establishments themselves, which operate on a smaller but no less important scale. Our Principals

take particular interest towards the waste overflow and collection issues faced by food and beverage

(F&B) outlets. As F&B outlets and fast-food chains are prevalent across the island, there is

high demand for solutions targeted at meeting their needs.

The Company

JusBin Pte Ltd was founded on January 2016 by 8 business partners who were dedicated to

optimizing logistical and manpower resources in waste management by improving waste collection

methods and operational efficiency.

It is our company’s aim to be the leading provider of smart technologies in the waste management

industry. With the technical expertise of our team of innovative engineers and designers, we plan to

introduce a series of reliable, affordable and relevant products that would meet the needs of our

customers. Embracing the latest sensor and communication technology, we keep ourselves at the

forefront of science and technology to ensure our competitiveness within the industry.

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On top of our economic pursuits, our principals hold strong beliefs in improving working and living

environments. In keeping our living environment clean and green, we aim to bring about positive

change to key public and commercial issues in terms of waste overflow, collection and management.

Furthermore, our efforts in mechanization and inter-communication of waste management

resources will also help workers in the waste collection industry, simplifying their work processes

and reducing the amount of human effort required.

Our team of competent principals and shareholders have strong background and experience in

product design, entrepreneurship and marketing strategies. Having performed leading roles in their

respective fields, their experience and knowledge would bring success to our products in market

breakthrough and penetration, meeting our performance targets for future development.

Our Product

The SmartBin, by Jusbin Pte Ltd, is a low-cost, low-maintenance comprehensive dustbin solution

aimed towards food and beverage (F&B) outlets and fast-food chains. The integrated bin combines

varying concepts aimed at easing physical workload of cleaners, manpower management and also in

design and aesthetics.

It consists of 3 main design components: the crushing mechanism, the optical sensor and the

networking system.

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Trash Compactor

Our mechanical trash compactor is able to provide between 30-40% of volume reduction of trash

within the bin itself. The lever mechanism allows cleaners to use up to 50% less force as compared

to traditional methods of vertically pressing rubbish using a compacting stick.

The design of the compactor system is such that it is able to be kept in a neutral position that does

not impede rubbish disposal into the bin itself. Furthermore, swinging handles are attached to the

compactor arms to provide a safe and solid grip for cleaners to hold on to whilst compacting trash.

Due to high volume and frequency of compaction required in the F&B industry, a fully automated

compaction system that runs on solar or AC power will be impractical due to cost and power

requirement constraints.

Optical Sensor

An optical sensor will be installed at the top of the SmartBin which will detect the bin’s fill level in

real-time. The sensor is programmed to send out two signals when the fill level in the bin is more

than 80% full. Firstly, it activates a blinker light on the exterior of the bin to show that the particular

SmartBin is near it full capacity. Secondly, it sends a wifi network signal to our main server, which

use will be explained in the next section.

Our optical sensor is easily detachable from the SmartBin itself for maintenance and installation. It is

also user friendly in that retailers can set their own notification fill level to maximize their

operational efficiency. The sensor battery can last for 5 years.

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SmartBin Network

As each SmartBin optical sensor will have a designation number, the SmartBin network connects

many SmartBins into a centralized “war-room” style system that displays the conditions and fill level

of each and every bin within the network. With real-time information, managers are now able to

efficiency deploy manpower towards specific bins for compaction or for replacement. This will

significantly reduce the time spent by cleaners walking around checking the condition of every bin

and allow them to be more productive especially during peak periods and in rush hour.

The network Graphic User Interface (GUI) is easily understandable and will be compatible with

existing computer systems. Furthermore, the network is also pre-programmed to be compatible with

smartphones in the form of Apple and Android applications. Notifications can be sent to the

managers or cleaners smartphones to know where and when a trip down to the dustbin is required.

Other Design Features

The basic exterior design of the SmartBin is aesthetically simple and unobtrusive. However,

customers can request for specialized and customizable designs to be wrapped around the bin for

marketing, advertisements or interior design purposes.

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The Market

Competition

In the current market, our main competitors are companies that are also developing smart waste

management solutions. Amidst the growing environmental awareness movement globally, it is

evident that there are inherent inefficiencies and wastefulness of current waste collection methods,

whereby innovators have leaped at the opportunity to provide effective solutions.

Notably, ECube Labs with their Clean CUBE [7] has established themselves as the leading innovator

of next generation bins. The Clean CUBE has the ability to detect waste levels within the bin itself.

In addition, it is able to automatically compress the waste within when it reaches a certain level,

drawing its power from in built solar panels or from the AC power supply. Furthermore, it is also

connected wirelessly to ECube Lab’s own analytical database network to coordinate waste collection

across a large area.

However, the Clean CUBE is currently only in its trial phase mainly due to its exorbitant costs. On

top of requiring it to be run on a power supply (especially if placed indoors) and other installation or

maintenance costs, the bin itself is priced at a hefty S$3500 per unit compared to about S$120 -

S$150 for a normal wheelie bin of the same size. [4] This severely limits their customers to luxury

chains or to government funded construction projects and hence, are not attractive to most

commercial establishments.

In addition, according to our extensive market research, little has been done to develop similar

technologies that cater specifically to F&B outlets. The current crop of dustbins used by most fast-

food chains and F&B outlets costs around $180 each. They have design principals based on

aesthetics and user-friendliness, rather than operational efficiency of the cleaners themselves. As

such, our products will focus on meeting the establishment’s needs, providing solutions for their

operational and managerial problems on top of meeting their basic expectations.

Our Customer

Our primary market for our products is for F&B outlets and fast-food chains. Food waste accounts

for 10% (780,000 tonnes) of total waste produced in Singapore per year [8]. On top of the general

problems of hygiene and food wastage issues, F&B outlets have to deal with other operational issues

caused by peak periods of waste disposal due to lunch/dinner hours, and during special events

(Mother’s Day, Valentine’s Day etc.) or Public Holidays.

Through a comprehensive market research ranging from past working experience of Principals to

surveys with the workers and management personnel from F&B establishments, we have identified

key areas that have pertinent issues to be addressed.

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Rubbish bins fill up quickly especially during peak periods, leading to trash overflow if not

compacted or replaced.

Manual checking of each dustbin have to be carried out by staffs to know if the dustbins are

full and are in need of crushing or replacement

The current tool used for crushing and compacting waste was inefficient and requires large

amount of effort to effect significant volume reduction

On top of these issues, it is evident that F&B and fast-food outlets usually face a shortage of

manpower during peak periods. The employment of more manpower for these brief periods of high

demand will not be economical as it leads to overstaffing for the rest of the time. Hence, an effective

and cheap solution to make trash collection more efficient will be needed for outlets to satisfy both

consumer demands and yet keep costs low.

Furthermore, it is of note that in some establishments, elderly cleaners are employed. This gives rise

to the need of a solution that requires less force and human effort to help the physically weaker

employees in fulfilling their job.

To summarize, our primary customers would be looking at these factors for consideration for their

rubbish bins

Price of bin – purchase and installation

Efficiency, organization, effort – manpower and time saved

Low maintenance required and its associated costs, ease of use

Hygiene and Design – unobstructed and aesthetically pleasing

Our Position

JusBin Pte Ltd aspires to be the leading provider of reliable and affordable waste management

solutions in the region. As part of our niche, we are working together with Food and Beverage

outlets across the island to identify, address and simplify the myriad of issues faced in their waste

management operation.

Innovation, technology, reliability, affordability, durability and user-friendliness are core qualities

that we strive for in our products. The experienced management and design team is driven to deliver

products of high quality assurance and design innovation.

The products we develop will aim to balance the role of cutting-edge technology and cost

effectiveness in our attempt to improve on and replace the existing bins used by most food retailers.

It is our belief that though advanced technology in our products may provide the most practical

appeal, simple mechanical solutions in products of a much lower cost will be more appealing to the

economically and financially conscious.

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Management

Current Organization Structure

Management Team

Chief Executive Officer (CEO) – Andramica Priastyo

As the highest ranking executive in JusBin, his main responsibilities include developing and

implementing high-level strategies, making major corporate decisions, overseeing all the

departments and managing the whole organization to ensure things are going smoothly and

on time. With the experience gained through internship and participating in different events,

Andramica has shown quality leadership and interpersonal skills that enabled him to assume

the role as the CEO and bring the company to a greater height.

Operations Director (OD) – Koh Eng Kiat

Accumulating knowledge and experience of business process and operations from his

internship, Eng Kiat will oversee the ongoing business operations within the company. He

has to report to the CEO and is the second-in-command within the company. Eng Kiat’s

leadership role as vice-chairperson, overall in charge of Logistic and Programming area, will

assist him to fulfil his tasks.

Chief Finance Officer (CFO) – Justin Tan

Justin has to manage the financial risks of the corporation. Furthermore, he is also

responsible for financial planning and record-keeping, as well as financial reporting to higher

management. Despite lacking of experience in the financing area, his potential as the CFO

was recognized by all of the other managers for his capability to keep track of the various

cash flow in the team in a well-organized manner. Moreover, his good analytical skill in

breaking down the risk and profits of the company will ensure the sustainability of the

business.

Chief Executive Officer

AndramicaPriastyo

Operations Director

Koh Eng Kiat

Chief Finance Officer

Justin Tan

Chief Marketing

Officer

Estella Koh

Human Resource and

Admin Director

Nigel Chu

Chief Product Officer

Yu Dehui

Project Manager

Chua Chun Kiat

Information Technology

Manager

Ling Han Wei

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Chief Marketing Officer (CMO) – Estella Koh

Leading the sales management, product development, distribution channel management,

marketing communications, and many others. Estella is responsible for all the marketing

activities in the organization. As one who has taken up the role of business manager once,

Estella is equipped with knowledge to source for sponsorships and to come up with new

marketing concepts to help the company gain market acceptance by exploring different

marketing strategies.

Human Resource and Administrative Director (HR) – Nigel Chu

With his responsibilities being to maximize employee performance in service of an

employer's strategic objectives and to manage administrative related works, Nigel has to

cover the different aspects in the company such as job design and analysis, workforce

planning, recruitment and selection, training and development, and performance

management. His experience in guiding trainees as well as organizing events has honed his

communication and interpersonal skills as well as the capability to manage administrative

works.

Chief Product Officer (CPO) – Yu Dehui

The main role of the CPO is to be in charge of all product related matter. Dehui tend to

work closely with the CMO to enhance on the sales of product via improvising the products

according to the response received from the marketing team. Dehui possesses the

knowledge of production processes during his internship and his liaising skill will assist him

in gaining desired support for the production of products from target companies and

industries.

Project Manager (PM) – Chua Chun Kiat

Having the overall responsibility for the successful initiation, planning, design, execution,

monitoring, controlling and closure of a project. Chun Kiat has to work tightly with all the

other departments in order to produce the product in the required timeline. Prior to his

previous experience in researching and developing prototype for project, Chun Kiat has

displayed the capability to suggest potential ideas that are viable and workable for the future

prospect of the company thus is tasked to take up the role to further hone his project

management skills.

Informative Technology Manager (ITM) – Ling Han Wei

Han Wei is assumed the task of implementing and maintaining the organization's technology

infrastructure. Equipped with various computer programing knowledge during his course of

study, Han Wei gripped a better understanding on the aspect of information technology. In

times, Han Wei will also be assisting the Project Manager in the creation of new products for

one who has been credited in project he has accomplished.

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Development and Production

Development Status

Before proceeding to the Phase one of the financial plan, a prototype will be created to stimulate the

functions of the SmartBin to provide an interactive visual platform when demonstrating to the

consumers.

The prototype has been made of different materials from the actual and to a smaller scale for the

ease of transportation between the factory and the school, as well demonstration of the crushing

mechanism within the product, the prototype would be produced with rectangular wood blocks for

its structure, and covered with transparent acrylic sheet.

The crushing mechanism for both the prototype as well as actual product would still be made with

metal rods and bars to provide accurate measurement of the crushing force available and degree of

movement/motion of both the lever and crusher.

The dustbin that we are currently using for the prototype is a typical 27x 27 plastic bin procured

from any $2 Dasio shop.

The development of the product has been as followed in Table 1. Till now the company is on track

and will begin the production by latest the end of May as projected in the development table.

Table 1 Development Status

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Production Process

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The rectangular box structure will be constructed with lightweight metal bar, and plastic casing to

provide a durable structure to withstand any type of weather and environment condition that the

product will be place at.

The bin would be made of metal sheets, for toughness and durability, as well as being immune to

both chemical and fire damages.

Make or Buy

The company focuses on the make strategy, whereby all the parts and designs are completed and

send to the manufacturer to produce the parts. As the company aims to sell the bins at low cost,

having to mass produce and make our own products allow material and parts to be produced at

lower cost thus cutting down on the expenses.

Location

The headquarters for JusBin will be located at the Galaxis Building, 1 Fusionopolis Place, Singapore

138422 (Refer to Appendix 2). The office space is 150 square feet and the leasing price is $2,000++

per month. The office is easily accessible by public transport, with the nearest MRT station (One-

North) being just 0.07 km walking distance away. This space will serve as our office for

administrative purposes, interview location for our potential personal, storing of prototype as well as

products and will act as a centralized communication hub. On top of that, the office is also equipped

with ‘pay as you use’ meeting rooms, which allows our clients to have a face to face session with us

and our products. The office will operate from 9a.m. to 5:30 p.m., standard office hours to ensure

that our customers will be able to get to us. The location is also near two of the local universities

Nanyang Technological University and National University of Singapore (NTU and NUS), a

convenient location to proceed to our Phase 1 of the plan.

Labor Requirement

For now the company has not planned for any recruitment during the Phase 1 section whereby the

consumers only involve university fast food outlets. The company will only begin its hiring of new

employee when the company proceed to Phase 2 of the plan as the company expand its reach to

island wide fast food outlets. Hence cost of labor for the current state will be $0.

As the company expand, production, finance, marketing and sales as well as human resource

department will have to hire new employees to manage the increase in workload. Since the company

is a startup company, employees of basic experience will be look out for to cut down the need for

trainings.

For production personal:

At least 1 year experience in the production line

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Team Player

For financing personal:

Accounting skills

Organizational skills

Planning and time management

For HR personal:

At least 1 year of HR experience

Friendly and good communication skill

Organizational and Time management skills

For marketing personal:

Able to adapt to new situation fast

Creative and ideas generation skill

Experience or knowledge on Marketing

Able to communicate effectively and deliver message clearly

Two weeks training will be provided for HR personals and production personals to allow them to

understand the company structures and production process. All new recruits will be given a one day

workshop to emphasis on the company working principle as well as to provide a detailed

information of the company products.

In the upcoming three years, the company will be recruiting 3 production personals and 1 marketing

personal to the team. The starting pay for the production personal will be $2000 while the marketing

personal will be starting from $2500. Hence, net labor cost will be $8500 per month. The other few

recruitments will be considered in the years ahead thus will not be included for the cash flow

calculations.

Cost of Production and Development

As mentioned in the development status, the prototype of the company is smaller in scale and make

use of different materials for the ease of demonstrating and transportation. Following is the

breakdown out the cost of the prototype:

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Table 2 – Prototype Cost Breakdown

Some of the machining processes cost will be saved as the school facilities will be used.

As for the actual product, the estimated cost of production will be as projected in Table 3. The

projection of cost is based on production of a SmartBin as quoted from a company that we are

liaising with. The company’s details are as enumerated:

Specialised in manufacturing and modification of offshore/shipping container,

Company website: http://taasia.sg

TA Asia Holdings Pte Ltd

No.6 First Lok Yang Road

Singapore 629730.

Material/ Process Cost

Cost of material (Metal) $180

Labour and Manufacturing Overhead $170

Optical Sensor & Networking $220

TOTAL COST $570

The cost is based purely on the production of one unit of SmartBin. The cost of each SmartBin can

be possibly lowered to much lower than $570 as the company approach mass production in the

future. Cost reduction due to economy of scale and overhead can be distributed across more

products. The company will liaise with different company to further cut down the production cost.

Material/ Process Cost

Bin $5.90

Rectangular Lumber- 910mm x 6mm x 6mm $2.00

Adhesive:

-Epoxy

-White glue

$6.00

Steel Hinge 32mm $4.00

Sandpaper, Sponge Sander and Sand Block $6.00

Board $14.00

Equipment:

Hand saw, Hand Drill, Half Round Handled File and

Craving Knife

$10.00

Total Expenses: $47.90

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Sales and Marketing

Pricing

The pricing policy that JusBin used to determine its product pricing is the penetration pricing.

This means that the company set a lower price relative to the competition to capture market share.

As mentioned previously, our targeted primary customer will be F&B outlets with a high sensitivity

to price of our products. The price of current products currently in the market available for our

customers is taken into account for our pricing strategy. Considering that the SmartBin will be the

first of its kind in the F&B industry, along with the improvements it will bring to waste management

and collection for each business, we will be charging a reasonable price of $800 per SmartBin.

Our research have showed that the SmartBin will be able to reduce human effort by up to 50% and

in addition, improve the efficiency of trash collection by up to 60% due to the sensor network

system. We are confident that our product, with its benefits and advantage over existing designs, will

be favorable to businesses in terms of improving operational management despite the higher price.

Furthermore, our high quality manufacturing process and equipment will ensure that maintenance is

not required frequently, and a 2-year warranty for systems and mechanical replacement will be

included upon purchase.

Furthermore, despite there being fully automated dustbins that provide similar functions to our

SmartBin, our product will be more attractive as it costs just 10% of the price of a Clean Cube, and

yet it adequately serves the needs of our customers. The price of $800 per SmartBin coupled with its

unique features serves to reiterate our branding of providing affordable and yet effective solutions.

This will also allow the company to not only cover production and marketing costs, but also reap

profits which could be channeled into development of newer and better products.

Estimated Sales

Table 3- Year projected sales of SmartBin

The design for the SmartBin was specially catered to meeting the needs of F&B outlets. In line with

Phase 1 of our financial plan, we would be partnering with NTU and other local universities to

introduce the SmartBin into their respective food outlets on campus from 3rd quarter 2016 onwards.

2016 (3rd/4th Quarter) 2017 2018 2019

Prediction Worst Expected Best Worst Expected Best Worst Expected Best Worst Expected Best

Sales (units)

100 150 250 500 600 800 800 1000 1200 1200 1,500 1800

Sales ($ ‘000s)

80 120 200 400 480 640 640 800 960 960 1200 1440

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Working with universities will not only act as a jumpstart to our business, but it will also provide

constructive feedback and information on its usefulness and ways to improve on its features as we

move on to Phase 2 of SmartBin’s development.

In Phase 2, JusBin will liaise with major fast-food chains islandwide to expand the reach of our

products. Along with our extensive marketing and competitive pricing strategy, we are confident in

obtaining contracts to install our SmartBins in those establishments. This will increase our expected

sales in 2017. In addition, our marketing department will also approach food retail outlets at hawker

centres and food courts where there is also a pertinent need for the waste management solutions

that the SmartBin can provide.

Finally, in our final phase of development, together with our marketing department, we will develop

our products as one that is environmentally friendly. Working with the National Environment

Agency and ZeroWasteSG, we hope to have a place in the industry taking on a leading role in eco-

awareness, and having eco-friendly products and processes.

There is concern however, that sales could be affected by rising rental and operational costs, hence,

companies would not be willing to spend on our new products. In the light of this situation, our

sales and marketing team will work towards convincing F&B establishments on the potential savings

and benefits of the SmartBin, and bringing about remunerations that goes beyond the initial cost of

the product.

Sales and Marketing Strategy

For the first phase and second phase, the company will be using the direct marketing approach that

comprises of direct email, telephone solicitation. Emails of the brief proposal will be send out to the

various targeted universities and fast-food chains with a follow up telecommunication.

Direct Marketing

Alternatively, JusBin can engaged in the door to door approach which means that we will be

visiting the targeted company to propose our ideas and product. It will be a good way for us to

get direct contact to our consumers and understands their needs as well as answering to their

doubts.

Moreover, the company will be actively participating exhibition events to get into interaction and

reach out to potential customer.

The main advantages of the SmartBin are space saving and the efficiency of waste collection at a

much lower price, thus it will also be featured in the proposal. A demonstration video will also be

attached to the email as a visual aid will provides a clearer picture of how the product works and re-

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emphasize on its features. The company will first be selling the products via email orders as the scale

of targeted consumers are small comprises only universities and fast food chains.

In the future prospect, as the company expand its reach to the other markets such as indoor office

company and even small cafeteria or F&B stores. An online retail store can be created to encourage

individual to purchase our products at their own convenience. As the company expand to a bigger

market, indirect marketing approach will be executed to further build trust and loyalty from

consumers and rapports with potential customers.

Indirect Marketing

JusBin will be engaged in various social media platform to provide a more informative yet

engaging content that attract the attention of the consumers. Visual service such as Instagram

will be able to give visual impact to the consumers. Positive interactions through social media

will also bring in potential customer.

For now, the company aims to expand our reach nationally before considering about expanding the

company globally.

Method of Sales

There are two types of distribution channels in which JusBin can get our customers locally in

Singapore. These distribution channels will help our company get our product into a variety of

channels where we might not be able to reach ourselves.

Direct Distribution

Beginning with a smaller market, the company will be accepting direct orders via email order

selling. The targeted consumers will receive our company proposal and order information will be

provided in the proposal as well as the company website. Thus, consumers can email us directly

with regards to their orders. Upon receiving their orders, payment and confirmation emails will

be send subsequently to inform consumers that their orders will be proceeded and delivered as

requested.

As the company grows, an online retail store will be created. Consumers will be able to proceed

with direct orders with the company with delivery services provided by the company.

Indirect Distribution

Although it will less likely be used due to the small market we are aiming currently, the company

will consider about selling the products to a wholesaler or straight to the retailers to make the

products available to consumers. This distribution channel will mostly likely to be engaged after

the company has expand its market nationally.

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Advertising and Promotions

As mentioned in the Sales and Marketing Strategy, direct marketing approach will be engaged to

send proposal of the company products. On top of that, the company will also continue to send

emails to update about the company’s new products as well as for any ongoing promotions. Direct

mailing which involves sending of advertising fliers, pamphlet and catalogues to customers to update

them as well as to attract more potential customers.

Another well received method is the use of social platforms. Facebook, Twitter and even Instagram.

This social platform will helps to increase the awareness of the company and its products and attract

new potential consumers with engaging visual content.

A company website will be set up to allow consumers to get a clearer understanding of the company

and its upcoming products. Before having access to the website, a video will be automatically played

to showcase the SmartBin or even the other new products. Visual sharing provides a clearer picture

and understanding to the products, thus allowing the consumers to capture the special features and

highlights of the company even before entering the website.

JusBin is evaluating the opportunity and making plans to position itself to market in two potential

markets in the future:

Office

Public Sector ( HDB Estates) working along with Town Councils

Revenues from these channels are not currently figured into the financial section of this business

plan due to the long term developmental nature of each. In time, they will each provide strategic

opportunities for the company to pursue.

As for the promotion aspect, loyalty incentive will be provided to return consumers for the

corporate side. A sample of the new product can be send to the consumers and discounts will be

given for bulk purchases varying with the number of products purchased. The records of the

consumers will be use to keep track so that when an online retail store is created, the return

customers will be provided with a personal account thus allowing them to make their orders at a

cheaper rates.

Several promotions that can be given occasionally in times like seasonal events or company

anniversary will be taken into considerations in the future after the company has been nationally

recognized.

Business Plan

SMART BIN 21

Financials

Risks (what risks are there and how to overcome them)

New competitors

In every market, competition will bound to emerge. As such, we have foreseen new competitors

trying to fight for a market share. Since we are entering the market through setting costs at its lowest

with higher quality, we believe that we will be able to build a positive reputation that will fend off

any competition.

Price reduction by Current competitor

If our competitor, Clean CUBE, has the ability to further reduce their price, they are still unable to

compete with the significant low price of our product since the bulk cost of their product comes

from the hi-end technology and its maintenance.

Trained Labour

Labour has always been an issue for many businesses survival. Trained labour thus, becomes an

essential criteria for our business survival. Therefore, we intend to hire our manpower from local

polytechnics as an alternative and actively participate for school internship programs.

Design Problems

This will be minimized through extensive prototyping and field testing.

Assumptions Made

The machines and equipment have a residual value of $2,000 for 2 years. Using the straight

line method, the formula for the calculation is ($10,000 – $2,000)/2 = $4,000, ($10,000-

$4,000)/2= $3,000. Hence annual depreciation of the assets is $3,000.

All projected amounts are in whole number.

Outlined by the Inland Revenue Authority of Singapore (IRAS), Singapore Exempt Private

Limited companies can enjoy legal full tax exemptions for first $100,000 of corporate profits

for the first three years.

All goods are sold as projected

A strong economy, without major recession

No allowance has been allowed for inflation.

There are no unforeseen changes in economic policy to make our clients' products

immediately obsolete.

Business Plan

SMART BIN 22

Start-Up Expenses

Registration of Company

Business Incorporation Package:

Business Licenses, Company

Incorporation Services and

Registered Address

Company name registration

and seal

Corporate Bank Account

$1,500

Rental and facilities $24,000

Consultation $4,000

Operating Cost $12,000

Insurance $3,000

Stationery/Business Cards $500

Marketing $3,000

Research & Development $20,000

Miscellaneous $10,000

TOTAL STARTUP EXPENSES $78,000

Balance Sheet 2016

Assets $

Current Assets:

Cash $95,000

Fixed Assets:

Equipment 10,000

TOTAL ASSETS: $105,000

Liabilities $

Current Liabilities 0

Total Liabilities 0

Net Worth/Owner’s

Equity/Retained

Earnings:

Start-up grant from NTU 5,000

Sponsors &

Crowdfunding 100,000

Total Owner’s Equity 105,000

TOTAL LIABILITIES &

OWNER’S EQUITY:

$105,000

Business Plan

SMART BIN 23

Profit and Loss (Income) Statement

Operating Expenses, Capital expenditure and Cost of Goods

The company will be expecting losses over the upcoming three years’ time as our expenses are

higher than our revenue. As projected in Appendix, Budgeted Profit and Loss Table, there will be

a net loss of $53,625 in the first year prior to startup, and a gradual decreases of net losses over the

next two years.

Budgeted Profit and Loss per accounting year: (July, 2016—June 2019)

July, 2016—June 2017

Income:

Sales $360,000

Less: Cost of Goods Sold

(COGS $570 x 375) $213,750

Less: Return to investors

(10% x $146,250) $14,625

Less: R&D (20% x $146,250) $29,250

Gross Profit $102,375

Expenses:

Starting Expenses $78,000

Salaries/Wages

(Owners) $72,000

Travel/Auto $3,600

Utilities ($200 x 12) $2,400

Total Expenses $156,000

Profit before taxes $(53,625)

Taxes 0

NET PROFIT/LOSS AFTER

TAXES

$(53,625)

July, 2017—June, 2018 July, 2018—June, 2019

Income:

Sales $640,000 $1,000,000

Less: Cost of Goods Sold

(570 x Qty) $570 x 800 = $456,000 $570 x 1,250 = $712,500

Less: Return to investors

(10%) $184,000 x 10% = $18,400 $287,500 x 10% = $28,750

Less: R&D (20%) $184,000 x 20% = $36,800 $287,500 x 20% = $57,500

Gross Profit $128,800 $201,250

Expenses:

Salaries/Wages (72,000

+ 2,000 x 3 x 12 + 2500 x

12)*

$174,000 $174,000

Business Plan

SMART BIN 24

July, 2017—June, 2018 July, 2018—June, 2019

Legal/Accounting

(Consultation) $4,000 $4,000

Marketing $5,000 $7,000

Travel/Auto $3,600 $3,600

Utilities $2,400 $2,400

Rent $24,000 $24,000

Depreciation $3,000 $3,000

Misc. $11,000 $13,000

Stationery/ Business

Card $500 $500

Insurance $3,000 $3,000

Research &

Development $29,250 $36,800

Operating cost $12,000 $12,000

Total Expenses $271,750 $283,300

NET PROFIT/LOSS $(142,950) $(83,050)

*The difference in Net Profit/Loss for July 2016- Jun 2017 and July 2017- Jun 2018 is due to the

additional 3 Production Personnel & 1 Marketing Personnel that JusBin is hiring.

Breakeven Statement

There will not be any break even occurring for the initial 3 years of operation of the company as

projected in the profit and losses. If the sales of product is going along as predicted, breakeven point

will happen in the account year of 2019-2020, with a non-zero value of $85 due to the fixed unit

price of the SmartBin with a projected net expense of $287,300. The number of units required to be

sold is 1785 to breakeven. Gross profit = [ (1785 x $800)- (1785 x $570) ] x 0.7 = $287,385.

-200,000

-150,000

-100,000

-50,000

0

50,000

2016-2017 2017-2018 2018-2019 2019-2020

Profit and Loss

Profit and Loss

Figure 1 Profit and Loss Projection

Business Plan

SMART BIN 25

Cash Flow Statement

There is a drop in the ending balance due to the additional 3 Production Personnel & 1 Marketing

Personnel that JusBin is hiring.

Year 1 (July 2016 –

June 2015)

Year 2 (July 2017 –

June 2018)

Year 3 (July 2018 –

June 2019)

Starting cash $95,000 $85,250 $500

Cash In:

Cash Sales $360,000 $640,000 $1,000,000

Total Cash Intake $455,000 $725,250 $1,000,500

Cash Out (expenses):

Rent ($2,000 x 12) $24,000 $24,000 $24,000

Utilities ($200 x 12) $2,400 $2,400 $2,400

Payroll (Salaries & Wages) $72,000 $174,000 $174,000

Travel $3,600 $3,600 $3,600

Insurance $3,000 $3,000 $3,000

Marketing $3,000 $5,000 $7,000

Professional fees (Consultation) $4,000 $4,000 $4,000

Office supplies $500 $500 $500

Misc. $10,000 $11,000 $13,000

Operating Cost $12,000 $12,000 $12,000

Research & Development $20,000 $29,250 $36,800

Registration of Company $1,500 - -

Cash Out :

Purchases $213,750 $456,000 $712,500

Total Cash Outgo $369,750 $724,750 $992,300

ENDING BALANCE $85,250 $500 $8,200

Business Plan

SMART BIN 26

Funding Request and Return

JusBin has established our financial needs of net $105,000. We believe that the initial funding of

$105,000 will be sufficient to carry JusBin through to initial profitability. These financial needs will

be met through a blend of NTU start up grant of $5,000 as well as sponsorship and crowd funding

of $100,000. Even though the projected profit and loss for the upcoming three years indicates that

the company will still incur losses. The company anticipated at least 15-20% of net return sales after

the initial years of operations.

Furthermore, with this level of performance, we anticipate expanding our market outside Singapore

after 5 years. Hence Jusbin will become an ideal candidate for public stock offering should the plan

take off as anticipated with 10 % of the profits return to the investors.

Investors can opt for either cash-out option or stop-loss order if the company will to make any

continual losses failing to meet the expectations.

Business Plan

SMART BIN 27

Miscellaneous Documents

Appendix 1: Resume Profile: Chief Executive Officer:

Business Plan

SMART BIN 28

Business Plan

SMART BIN 29

Operation director

Business Plan

SMART BIN 30

Business Plan

SMART BIN 31

Chief Finance Officer

Business Plan

SMART BIN 32

Business Plan

SMART BIN 33

Chief Marketing Officer

Business Plan

SMART BIN 34

Business Plan

SMART BIN 35

Human Resource and Administrative Director

Business Plan

SMART BIN 36

Chief Product Officer

Business Plan

SMART BIN 37

Business Plan

SMART BIN 38

Project Manager

Business Plan

SMART BIN 39

Business Plan

SMART BIN 40

Informative Technology Manager

Business Plan

SMART BIN 41

Business Plan

SMART BIN 42

Appendix 2:

Business Location

Business Plan

SMART BIN 43

Abstracted from (http://www.commercialguru.com.sg/listing/14814688/for-rent-galaxis)

Business Plan

SMART BIN 44

References

[1] Singapore Government, "Smart Nation," 20 April 2016. [Online]. Available: http://www.pmo.gov.sg/smartnation.

[2] The Straits Time, "Pilot project to fit rubbish bins with 'smart' sensors launched by NEA," The Straits Time,

[Online]. Available: http://www.straitstimes.com/singapore/environment/pilot-project-to-fit-rubbish-bins-with-

smart-sensors-launched-by-nea. [Accessed 20 April 2016].

[3] Mobi, "MOBIQUEST SOLUTIONS," MobiQuest Solutions Pte Ltd , [Online]. Available:

http://www.mobiquest.net/. [Accessed 20 April 2016].

[4] The Straits Time, "CC testing bins that send e-mail or SMS when they are full," The Straits Time, [Online].

Available: http://www.straitstimes.com/singapore/cc-testing-bins-that-send-e-mail-or-sms-when-they-are-full.

[Accessed 20 April 2016].

[5] Ecube Labs, "Data Driven Waste Management Solutions," Ecube Labs, [Online]. Available: http://ecubelabs.com/.

[Accessed 20 April 2016].

[6] Smartbin, "Smartbin," [Online]. Available: https://www.smartbin.com/. [Accessed 20 April 2016].

[7] Ecube Labs, "Clean Cube," Ecube Labs, [Online]. Available: http://ecubelabs.com/integrated-waste-

management/solar-powered-trash-compactor/. [Accessed 20 April 2016].

[8] National Enviromental Agency, "Waste Statistics and Overall Recycling," National Enviromental Agency, [Online].

Available: http://www.nea.gov.sg/energy-waste/waste-management/waste-statistics-and-overall-recycling.

[Accessed 20 April 2016].