Ice

ViceEntrepreneurship

Innovation P’an Event

PRODUCT

‘I

PRESENTED BY:CDDfl

East Syracuse Minoa High School6400 Fremont Road, East Syracuse, NY 13057

East Syracuse Minoa DECA ChapterApril 21, 2013

6

3

rAbL. Ui CUNflNS

I. EXECUTIVE SUMMARY .1

II. PROPOSED PRODUCT 2

A. Explanation of product proposed 2

B. Description of the opportunity that exists 2

C. Description of the target market 2

! RATIONALE AND FEASIBILITY 3

A. Trend 3

B. Differentiation 3

C. Potential 3

1. What is the potential reach of the proposed product? 3

2. What is the growth potential? 4

3. What is the earning potential? 4

IV. CONCLUSION 5

V. BIBLIOGRAPHY 5

EXrCLIT! VF SLJMMA P Y

The Ice Vice is an invention that serves the same purpose as a drinking straw, with the difference beingthat the Ice Vice has a different structure so it can have room for logos. Through bending as much or aslittle as needed, the flexible Ice Vice fits inside any sized beverage glass (refer to Figure 1) and solves thefollowing problems:

1. Small ice chunks being swallowed 2. Ice causing spills3. Ice coming in contact with consumers face 4. Ice blocking the flow of liquid5. Ice melting too rapidly

Fiqure I: How to use the Ice Vice

STEP 1: Add ice STEP 2: Push down Ice Vice

WHY THE icr v’c

The Ice Vice will be a major competitor in the market place because of its new, fun concept andversatility. Bring the Ice Vice anywhere — sporting events, family parties, restaurants, the workplace, oreven just at home: the Ice Vice is perfect for any occasion! You can use the Ice Vice to provide a smootherflow of your favorite beverages, to show off support for your favorite team, or both! Whether it’s for soda,water, cocktails, or even beer that doesn’t have ice cubes, the ice vice can go in any drink. The Ice Vice issimply fun to use and a great way to promote your favorite team or cause’THE FOLLOWING PHASES INCLUDE MAJOR ASPECTS OF THE FUTURE PLAN FOR THE ICE VCE

PHASE ONE ESTABLiSH CONTRACTSO Obtain NFL licensing agreement with a $100,000 investment and 1 5% royalty agreementC Reach a contract with a local molding and distribution facility to mass produce the Ice ViceO Hire employees (sales! advertising team) and lease an office space

PHASE TWO MARKETING AND PROMOTIONLI Collaborate with the advertising team to begin an aggressive advertising campaignC Utilize the internet to create a full website for the Ice Vice and market using social mediaLI Promote the Ice Vice using televised infomercials, local sporting events, and printed mediums

PHASE THREE IMPLEMENTATIONLI Start beta testing in selected cities starting in 201 4LI Use the initial investment to fund start up expenses and work to obtain profitsLI Begin the full sales campaign for the Ice Vice in 201 5

STEP 3: Add beverage and enjoy!

(The request for fhiancing is $400,000 for a 75’!4 stake in ownetship of the ice V/ce,)

2

A. ExoiaI?aticn of product

The Ice Vice is a flexible yet resistant product that fits into any sized beverage glass. The device

utilizes friction in order to stay in place. The purpose of the device is to prevent the ice from coming up to

the top of the glass. The material used is dishwasher safe, nontoxic, and meets FDA regulations for safety.

After the ce Vice has been pushed into a glass, the beverage can be consumed without any problems from

ice cubes. On the surface of the Ice Vice, there is room for logos to promote a favorite team, business, or

cause.

B Descript/on of the oppcrtunty that eists

The opportunity that exists with the Ice Vice is the chance to reach profits of $4,000,000 in the first

year from an $84,000,000 market. In addition, there is an opportunity to solve the five main problems

caused by ice cubes. The problems have not been solved previously, which is why the patented Ice Vice is

a valuable and unique product. An NFL licensing agreement expands the opportunity through appealing to

a historically successful target market of consumers. With virtually no competition, the Ice Vice is sure to

be a smart investment and opportunity to resolve an unresolved problem.

C. Dnscripon of (170 turc;ot mar!’e1

Assuming that the Ice Vice obtains an NFL licensing agreement, the target market of the Ice Vice would

fit the description of an average football fan. The market would be males, or females buying a gift, in the

mid—salary range from the age of 18 to 44 who have graduated from high school or have a bachelor’s

degree in college and who have purchased sports merchandise in the past. The demographic research was

based on a survey in which 60 percent of NFL fans were males, 50 percent of whom were aged 18 to 44 in

the mid-salary range, and 65 percent of whom have at least a high school diploma or bachelors degree in

3

college (Sports Business Daily). The NFL target market is a means to reach profits to have the resources to

expand logo possibilities with the Ice Vice.

A. Trend

In today’s culture, NFL fans are always eager to buy the latest sports merchandise. On NFLshop.com

alone, fans can purchase almost anything with their favorite team’s logo. While NFL merchandise is

consistently successful, there is always room for new products. The Ice Vice is the perfect new product

because of its unique, useful purpose, and because of its attractive appearance. Recent increases amongst

sales of NFL embroidered coasters, cozies, cutting boards, cake pans, and even salt and pepper shakers

proves that the Ice Vice is in good company to become a “must have” trending item.

8. Diffe’entiuiiori

The unique selling position of the Ice Vice is that consumers can eliminate all five problems of ice

cubes while drinking out of their glasses with style. In addition, they will be showing support for their

favorite teams. Assuming that the vast majority of the target market has used ice cubes, we can infer that

they have experienced the corresponding problems. The good news, however, is that no other product on

the market solves the problems of ice cubes in a more original and effective way than the Ice Vice. The Ice

Vice will surely grab the attention of onlookers and market well for being such an out—of-the—box

invention.

C Potential

I. V/hat Is the potential neon of the pscoosed p!oduct?

According to NFL statistics from 2012, there are over ninety million NFL fans in America. Of that ninety

million, it is estimated that about thirty two percent will purchase NFL merchandise and of that thirty two

percent, eighteen percent will purchase products online. That means the number of fans purchasing

online in one year’s time is just over five million. The reach of these five million fans is spread evenly

4

throughout the nation with a six percent drop in the west. Of the five million, approximately three million

will browse the ‘Home and Office” section on NFLshop.com and of that three million; just over 1.5 million

will actually make a purchase. With a 1 .5 million person base of possible buyers nationwide, the reach of

the Ice Vice is vast (Shmoop 2012).

2. What is the growth potentia:?

Based on the growth of trending products and the NFL, an accurate estimation can be drawn for the

growth potential of the Ice Vice. Top trending products such as Livestrong bracelets on average multiply

their sales by ten in one year’s time after trending (Clarke). Once discovered, these products skyrocket

simply because people notice other people using the product and want one for themselves. The trending

products can reach immense numbers of sales, especially if the product is both useful and features their

favorite teams. This is why future growth for the Ice Vice is promising. Combined with an NFL licensing

agreement, there is a great opportunity for the Ice Vice to multiply its sales by ten and become trending

with effective advertising campaigns.

3 What is the earning ootentiai?

From the thirty two percent of NFL fans who purchase NFL merchandise, it is estimated that 84 million

dollars is spent. With five million fans browsing the section “Home and Office” on NFLshop.com, sales can

be expected to reach around 400,000 units with a projected income of $8,000,000 within the first year.

Units consist of ten Ice Vices priced at $1 2.99 or three Ice Vices priced at $6.99. After expenditures are

calculated, the Ice Vice is expected to have a profit of just under four million dollars as seen in Figure 2.

Research was based on average sales of individual NFL products under the “Home and Office” section of

NFLshop.com (Shmoop 2012).

S

Figure 2:

Financial ProjectionsProduct Sales (Income)

Shipping and Handling$8,000,000.00

j Material and Packaging$6,000,000.00

Worker’s Salaries$4,000,000.00

Advertising Campaign$2,000,000.00

Molding and

Distribution Contracts $0.00£Taxes and Other Income

Expenses

I am requesting $400,000 for a 1 5% stake in ownership of the ice Vice. Having already established a

patent and working prototypes, the only measures left to complete are utilizing the investment to

establish an NFL licensing agreement, advertising contracts, and contracts with a molding and distribution

facility. Your investment will make you part owner of this exciting and dynamic new productl

Clarke, Kristin. “Fundraising Lessons From Lance Armstrong,’ ASAE N.p., n.d. Web. 1 3 jan 201 3.<http://www.asaecenter.org/Resources/ANowDetail.cfm?ltemNumber=44081>.

Scarborough Research Data On NFL Fan Demographics .“ Sports this/ness Daily. Street and Smiths, 262006. Web. 22 Oct 2012.

Shmoop. “Economy in NFL History: The World’s Richest Sports League.” Shmoop. N.p., n.d. Web. 14 Nov2012. <http:/fwww.shmoop.com/nfl—history/economy.html>.

Expenditures

A

4

ENTREPENEURSHIP INNOVATION PLAN EVENT

Lake Braddock DECA

Lake Braddock Secondary School

9200 Burke Lake Rd. Burke, VA 22015

Zachary Carter & Carter Niehoff

April 22nd 2013

a’

PockstPowsr

Table of Contents

I. EXECUTIVE SUMMARY1

II. PROPOSED BUSINESS/PRODUCT/SERVICE2-3

A. Explanation of business/product/service proposed2

B. Description of opportunity that exists2

C. Description of the target market3

III. RATIONALE AND FEASIBILITY3-5

A. Trend3

B. Differentiation4

C. Potential4-5

1. What is the potential reach of this proposed business/product/service? 4

2. What is the growth potential?4

3. What is the earning potential?4-5

IV. CONCLUSION5

V. BIBLIOGRAPHY5

I. EXECUTIVE SUMMARY

Mission Statement“To exceed our customer’s expectationsin quality, functionality, and costthrough innovation and interaction.”

flescriptiun of Target Market

Pocket Power will begin by targetingconsumers aged 18-44, who live in urbanlocations in the Northeastern region of theUnited States. Our hope is that Pocket Powerwill grow to attract suburban and ruralbusiness, and begin expansion to the entirecontiguous United States by Year 3.

Smartphone Owners by AgeGroup

7 30%390%640

13-2.7

1S-24

25-34

S 33-44

.5.54

55-64

I PiickatPawer 1Business Oesciiption

Pocket Power is a new retail and manufacturingcompany that will create innovative products, initiallyphone cases and later clothing, lined with Powerfelt—athermoelectric fabric that uses differences in temperatureto create an electrical current and charge whatever batterypowered device is in the area lined with the material.

Our initial plan is to produce smartphone casescapable of charging the device. Our product will be a hit inthe industry, because never before has a cell phone caseprovided anything more for a phone than protection andvisual appeal. As our company grows, we plan to integrateclothing lined with Powerfelt, which will increase ourcompany’s profitability.

Trend and Opportunity

Without a doubt, the most common devicethat the everyday consumer carries with them istheir cell phone, most of which are smartphonesin this day and age. In 2012, for the first time ever,smartphones made up over half of the global cellphone market, almost two years faster thanpreviously expected. Through extensive research,we found that satisfaction in the smartphoneindustry is greatly impacted by battery lifeperformance, and that is where Pocket Powercomes in. Pocket Power is the cure to thisdissatisfaction because we produce the firstmobile, self-sustaining source of power that iswidely available to consumers at an affordableprice; in other words: a reasonably priced phonecase or article of clothing that will greatly improvethe battery life performance of your smartphone.

17.40%

27.20%

U.S. Smartphone Ownership byGeographic Location

50

I 46

• 30

1o

Urban Suburban Rur&Geographk Location

We are asking for 8100,000 for a 20% ownershipstake in our company

This amount will cover expenses such asstartup costs, materials, equipment, employees,research and development, website developmentand upkeep, and marketing among other costs.‘I

1

II. PROPOSED BUSINESS/PRODUCT/SERVICE

. Explanation of business/product/service proposed

Initially produce phone cases, and eventually clothing, lined with a fabric called “Powerfelt” under our

brand Pocket Power. This material uses differences in temperature, in this case a person’s body temperature

to room temperature, to create an electrical current and charge whatever battery powered device is in the

area or pocket lined with the material. Just by having a phone in a “Powerfelt” lined pocket, a phone’s battery

will last 10-20% longer, presenting a potential to gain hours of battery life with absolutely no strain or effort

from the user other than slipping the phone into your pocket. In the absence of a significant difference of

temperature, Powerfelt can also us mechanical noise and vibrations to create a comparable electrical current

and charging effect. Phone cases will be created to fit a variety of smart phones, as well as be offered in a

variety of styles and colors. Clothing will feature professional, casual wear, and athletic wear catering to a

variety of markets.

d. Description of the opportunity that exists-

Satisfaction with smartphones is greatly impacted by battery life performance, and specifically the

length of time before a recharge is necessary. According to a JD Power & Associates 2012 Consumer Survey,

the length of battery life performance is by far the least satisfying aspect of smartphones, receiving a rating of

6.7 out of 10. With the inability to plug in your phone everywhere you go people are looking for a way to

increase mobile battery efficiency without slowing down their busy lives. We believe we can provide this by

having their phone in a Pocket Power brand case or pocket. People have the capability to make their phone

last hours longer without adding or taking away any steps in their daily routine to charge their phone, saving

the most valuable commodity we have in this life: time.

2

C. Description of the target market-

Smartphone Owners by Age U.S Smartphone Ownership byGroup Geographic Location

603.90% 6.40%7.80, ° 50 46

13-1717.40% t 40 2011

18-24 c2012

25-34a 20

p35-44. 10

45-5427.20% 0-—

5S-64 ° Urban Suburban Rural

_______________________________

Geographic Location

According to data compiled by GO-Globe.com, over 60% of the smartphone market share is owners

aged 18-44. Urban locations experience the highest amount of smart phone usage, with a decline in suburban

areas, and further decline of usage in rural areas. Additional data shows that the leading demographic of users

(Age 25-34), also experiences the greatest penetration rate at 62%. This indicator shows that as market

penetration of smart phones increases, the market for Pocket Power will only grow and expand. Therefore

the market that will initially be targeted is consumers aged 18-44, who primarily live in urban settings.

Ill. RATIONALE AND FEASIBILITY

A. Trend-

According to digitaltrends.com, in 2012 for the first time ever, smartphones made up over half of the

global cell phone market. Smartphones will dominate the global cellular market in 2013, almost two years

faster than previously expected. This is a strong indication that the market Pocket Power attempting to reach

and sell to is expanding. With such rapid growth, the market will soon begin to peak and thus create an ideal

time to introduce Powerfelt products. You will seldom come across anyone that does not have at least a basic

cell phone in this day and time. With over half of those individuals owning smartphones and having the

problem of battery life as aforementioned in our description of opportunity, the platform of places and people

that can be marketed to will also experience the same growth trend.

3

B. Differentiation-

This product is unique because it is the first mobile self-sustaining source of power widely available to

at an affordable price. Using a thermoelectric fabric, our Powerfelt uses differences in body

temperature and outside temperature to sustain the battery life of mobile devices, requiring no extra effort

from the person wearing the clothing. Additionally, because this material is concealed in a pocket or a phone

case, the aesthetics of the cases and clothing will be in no way affected during this process, making sure

consumers don’t have to sacrifice their own personal style to enjoy the benefit of Pocket Power.

Potential

Potential Reach- The initial target will be highly-populated urban locations in the Northeastern part of the

United States, such as New York City, PhiJadelphia, Boston, and Washington D.C. From there the brand will

catch fire and spread to local suburban and rural settings across the U.S. The first product, smartphone

case, will serve as an introduction of the Pocket Power brand to the consumer. Following that professional,

casual, and athletic clothing will be added to the product portfolio. Additionally, there will be a focus on

users aged 13-24 in order to present an opportunity for our brand to grow with younger generations and

establish brand loyalty and accountability. By adding more products to the portfolio, Pocket Power’s reach

will potentially spread from the Northeast to across the North American continent.

Growth Potential- By diversifying the product line from just smartphone cases to adding clothing lines,

there will be an increased market potential from smartphone users to virtually all people who wear

clothing and carry a battery powered device. By moving into new markets, developing new product lines,

and employing new marketing techniques, Pocket Power can grow from a niche market to a market with

greater volume. By the end of the first 18 months Pocket Power will show profits that will allow room for

expansion, both structurally and geographically.

Earning potential- A vast earning potential with Pocket Power is present due to the inexpensiveness of the

production of Powerfelt. Researchers have estimated that it will only cost an extra dollar to add a piece of

4

C.

1.

2.

3,

Powerfelt to a phone case or piece of clothing, leaving a massive profit margin. Clothing and phone cases

can be produced with competitive market prices, except Pocket Power’s will have the ability to now charge

battery powered devices in the said case or pocket. This provides strong leverage over competitors, as

well as the ability to slightly increase retail prices due to the differentiation of the product, leaving an

earning potential that will be unmatched in the market today.

IV. CONCWSION

We hope that through this report we were able to fully explain our business endeavor. In addition, we

believe we have an opportunity to capitalize on this market, and provide a generous return on your

investment. Our brand has the potential to be an industry standard for the future as it spreads across the U.S.,

due to our unique selling proposition, and the suggestion of the recent smartphone trend. We are requesting

$100,000 for a 20% stake in our company that will cover various expenses such as materials, equipment,

employees, research and development, website development and upkeep, and marketing among other costs.

We strongly believe that you will not only receive 100% of your investment back, but even more in profit, and

we assure you that your money will be spent solely in ways that benefit the company. We hope that you are

as confident and passionate as we are about Pocket Power, and look forward to working toward reaching the

brand’s potential.

V. BIBLIOGRAPHY

“2012 U.S. Wireless Smartphone Customer Satisfaction Study and 2012 U.S. Wireless Traditional Mobile PhoneSatisfaction Study.” JD Power and Associates, 6 Sept. 2012. Web

Alexander, Anson. “Smartphone Usage Statistics 2012 [Infographic].” Go-Globe. N.p., 24 Jan. 2012. Web. 31Jan. 2013.

Creager, Reid. “Wake Forest’s Power Felt a Hot New Use for Body Heat.” Wake Forest’s Power Felt a Hot NewUse for Body Heat. NewsObserver.com, 26 Aug. 2012. Web. 31 Jan. 2013.

“Smartphone Market Growing Faster than Anticipated.” Digital Trends. Digital Trends, 28 Aug. 2012. Web. 31Jan. 2013.

“U.S. Smartphone Ownership by Geographic Location.” Statista RSS. Statista, 19 Feb. 2012. Web. 31 Jan. 2013.

5

firedove

fli’j

Entreg,rer.eursh.I in’atbn Pta EVE.flt

King’s DECA

King’s High School

19303 Fremont Ave. North

Seattle, WA 98133

Jack Kim4/18/2013

K\J

Tthe of Contents

I. ExecutiveSummary.1

II. Proposed Product 2

A. Explanation of Product 2

B. Description of Extant Opportunities 2

C. Description of Target Market 2

Ill. Rationale and Feasibility 3

A. Trend 3

B. Differentiation 3

C. Potential 3

1. Potential Reach 3

2. Growth Potential 3

3. Earning Potential 3

IV. Conclusion 4

A. Business Model Cycle 4

B. Summary of Key Points 4

C. Financial Projections & Request 4

D. Request for Financing 4

V. Bibliography 4

VI. Appendix 5

firedove Firedove I Jack Kim 1

Executive Summary

Rationale: Among the biggest limitations preventing us from living in a poverty-free, disease-freeworld is lacj nclinwarcijelief efforts. By incorporating giving into painless but monetizableon line a tis Lke on line hppp!flgnd by dcjgthe sianncrithe frequency ofdonaons, Firedove can root philanthropy across a wider demogppectrum and direct morecapital to already extant, working nonprofits — indirect[ solving global problems by addressing theirmajor root: money.

Mission: Firedove’s core mission is simple: to harness the immensely profitable e-commerce andaffiliate marketing industries to provide nonprofits with more funding. Through the online_Firedoverebrandingpafrm, nonprofits of any size can deploy their own browser extensions to theirsupfrs and start raising money every time a supporter purchases a product online.

The Problem: Nonprofits are always in need of funding. Without money, wells cannot be drilled,education cannot be provided, and diseases cannot be prevented. Currently, many organizations turnto direct donation inquiries and corporate sponsorships to fund projects. However, with tougheconomic conditions, these methods are not_always reliable or sustainable.

The Solution: Firedove seeks to solve this problem by adaptin e$billion_onlirAffiliatemarketing industry to generate hard cash f9r nonprofits. y incorporating philanthropy into aneveryday action such as shopping, Firedove allows any user to easily support a nonprofit monetarilywithout actually spending an extra dime; the free, downloadable Firedove browser extensiontransforms a user’s online shopping habit into meaningful contributions by donating a percentage ofeach purchase to a partnered nonprofit (at no additional cost to the user, as the donations comedirectly from affiliate commissions).

Target Market: Firedove’s primary target market addresses snjall to medium sized nonprofits in theUS with annual revenues ranging from $10,000 to $500,000. Its secondary target market includeslarger organizations with revenues above $500,000.

Competitive Advantage: Unlike its competitors, Firedove foHows a strictly B2B strategy, marketingdirectly to established nonprofits rather than to individual end users of the extensiop. This strategycreates larger impact for the partnered nonprofits, as the generated funds are now not diluted out tothousands of different organizations, but dedicated to one organization at a time. Firedove alsooffers a higher donation rate fo ofits (7 hando any of its competitors.

Business Model: Nearly 100% of Firedove’s revenue comes from commission fees offered byInternet merchants as users purchase products online. Firedove operates onmodeL with partneredj npofits allowing it to donate the majority of its revenues to charities whilestill returning a generous profit. Its primary method of customer acquisition is online advertising,such as search-targeted ads and social media ads.

firedove Firedove I Jack Kim 2

Proposed ProductA. Explanation of product

Firedove’s proposed product is twofold: the Firedove Browser Extension, and the Online Rebranding Tool. (Refer to

Appendix for product images) The Firedove Extension (aka Firedove) is a downloadable_browser add-on_that transforms

anyone’s online shopping habit into meaningful contributions by donating a portion of each online purchase to a

partnered charity. This process is facilitated via affiliate marketing, a system in which a merchant pays a commission (a

percentage of the total product price) to an individual who has referred a paying customer. Firedove has established

affiliate connections with hundreds of major online retailers such as Amazon.com and Nordstrom.com; whenever a user

searches online for a certain product, the extension identifies donation opportunities by highlighting the links of its

partnered merchants (Appendix Al). When the user proceeds to purchase from the selected merchant, Firedove receives a

4-15% referral fee, which it then distributes to partnered nonprofits (Appendix A2). The Firedove Online Rebranding Tool

(aka Firedove Rebrander) is an easy-to-use web interface that allows any nonprofit to completely customize the Firedove

Extension using its own color scheme and logo. It also provides nonprofits with free marketing resources such as social

media tools, email templates, and landing pages to help them spread the campaign and earn more supporters.

B. Description of extant opportunities

Over one-third of all nonprofits surveyed in the US claim to have experiencedadecline ighllagthrg.,pic contributions over

the past couple years (SOURCE: The Urban Institute, 2010). Simply put, nonprofits need money, and individuals do not

want to give away money. Firedove’s solution is to make donating as painless and costless as clicking a checkout button

on a website. By doing so, nonprofits will now be able to collect passive income from thousands of supporters who have

previously been reluctant to give away personal finance. Furthermore, Firedove’s innovative free-lanthropy model will

break down the traditionally wealth-dependent model of philanthropy, allowing virtually anyone with an Internet

; j( r7 fconnection to participate in charity. /7 -)7 Ci

C. Description of target market

Firedove’s primary target market consists of small to medium sized US nonprofits with annual revenues of S1OK - $500K

and supporter bases of 100 — 5000 people. This market contains roughly 1.1 million organizations, out of a total pool of

1.5 million in the nation. Small to medium nonprofits are the optimal market because they tend to rely more on individual

contributions than on corporate sponsorships. and are more likely to be in search of new fundraising ideas.

fjrwJoiie Firedove I Jack Kim 3

Rationale and FeasibilityA. Trend

Online giving is on the rise. Of the six major vehicles for nonprofit fundraising (telephone, major gifts, online, direct mail,

board, grants), online giving has topped the list of vehicles showing growth for the past several years. Additionally,

donations acquired via online giving have been1211 18 15 Increased by more18 20 23 21

than 15%consistently increasing for 58% of all nonprofits22

26 24 Increased by less27 than 15% using the method. These data reflect a gradual shi.

II ‘ IStayed the same

in nonprofit attitude regarding traditional

B Decreased by less

•redbymore

fundraising; organizations are now more likely to

than 15% place emphasis on Internet presence, and moreQ,,%,, Mo 0,en n,3 ound0’n 5poVgfu pft ‘ ‘i Givir,8

VVVV.V

VV• willing to adopt online solutions such as Firedove.

< /B. Differentiation V

Firedove’s unique selling proposition is the strictly B2B structure. Instead of marketing directly TO the end users of the

extension Firedove markets THROUGH existing, trusted nonprofits. This creates more trust to download on the users’ part,

and creates more impact, as accrued funds are not diluted out to thousands of different organizations but rather funneled

to one at a time. Furthermore, Firedove offers a higher donation rate for non profits (70%) than do any of its competitors.

C. Potential /

1. Firedove has the potential to reach up to 1.1 million small to medium sized nonprofits that are looking for new

fundraising mediums. It plans to market to these organizations mainly through online advertising, primarily via Google

AdWords and strategic website partnerships. Furthermore, Firedove has an extremely low cost per customer acquisition,

as online advertising costs are minimal compared to the average value of a customer.

2. The growth potential of Firedove is immense, as demonstrated by the amount of traction it has re ejvedthus far.

Although the primary product is still in early Alpha stage, the company already has several nonprofits lined up as Beta

testers, and is currently in contact with larger organizations such as Rescue.org (a worldwide organization).

3. The growth potential also carries with it a big earning potential. The average value per small/medium sized customer is

$800, and with a projected customer count of 500 by the end of September 2013, the expected revenue for the first year

totals $450,000.

/

4firedove Firedove I Jack Kim 4

ConclusionA. Business Model Cycle

Firedove possesses an extremely sustainable as well as scalable business model. Below is a visual outline of the process,

from customer acquisition to profit return:

B. Summary of Key Points

- Current trend shows decline in donations and increase in

nonprofits’ willingness to use online fundraising solutions.

1.1 million nonprofits in target market

- Zero cost for participating non profits

- Two products: Firedove Extension, Firedove Rebronder

- Highest donation rate among competitors

- Strictly B2B marketing strategy

- Great traction reflects product validity, market demand, and

growth potential

C. Financial Projections & Request

With Firedove’s Online Rebrander platform, the company expects to have processed 4,500 individual

organizations/extensions by September 2015, producing a net income of $1.7M.

D. Request for FinancingFiredove FnandaI ProJecton5, 2012-2015

2000000Firedove is seeking $50,000 in seed funding to cover its first year of

1.500,000operating costs. Provided below is a breakdown of the costs:

_________ _________

• Server & Maintenance: 5K

• Equipment: 5K

• Freelance work: 5K

• Advertising/marketing: 10Kc(ln flflfl • Schooltime salaries: 15K

• Summer (full-time) salaries: 10K

2012 2013 2014 2015

Optg

The Nonprofit Research Collaborative. The 2010 Nonprofit Fundraising Survey. Washington, D.C.: The Nonprofit Research

1,719,000

191q,

............

Collaborative, Mar. 2011. PDF.

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