Landmine lecture 7 partners
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Transcript of Landmine lecture 7 partners
Ying Wang (Lead)
Yu Lei (PI)
Mike Wisniewski (Mentor)
Explosive Detection
NSF / ICORP Program
Old Canvas (11/01)
Cheap
Partner’s distribution channels
IP
Manufacture of machine
Production Sensing materials
Wider spectrum
Production
Large scale
Reliable
Easy to use
Facilities
Chemicals
Profit Explosives Detection/CleanupOrganizations (Development Initiative Limited)
Non-profitOrganizations (HALO)
Flir
Smith Detection
Demo
Training
Dedicate Personal Assistance
Field Test
Direct Sale
Sensitivity
Old Canvas (11/08)
Cheap
Partner’s distribution channels
IP
Manufacture of machine
Production Sensing materials
Wider spectrum
Production
Large scale
Reliable
Easy to use
Facilities
Chemicals
Profit Explosives Detection/CleanupOrganizations (Development Initiative Limited)
Non-profitOrganizations (HALO)
Flir
Smith Detection
Demo
Training
Dedicate Personal Assistance
Field Test
Direct Sale
Sensitivity
NSF / ICORP
Revenue Model
• Physical to Physical• Direct sales:
- Products- Service- Refills
NSF / ICORP
How Do Competitors Price
• Metal detector
• Trained dogs
• MEDDS
- Price: ~ $3,000 /unit.
- Speed: 30 m2/worker/day
- Price: ~$12,000 / 6 yrs (feeding fees not included).
- Speed: 1000 m2/dog/day
- Price: ~$200/km road- Speed: 14 km/team/day
NSF / ICORP
How We Price the Product
- More accurate
- Quicker
- Cheaper
- Area reduction
• Our cost:
• Competitive pricing model
• Value pricing model
- Material cost: $ 0.7 /m2
- Shipping cost
- Customer acquisition cost
NSF / ICORP
Payment Flow
Construction Companies
Mine Sniffer Oil/gas Companies
Field Test Based Proposal
Demand Creation
CUSTOMER
Teste
d
Teste
dIn Progress
Successful field test
More reliable
Attract customers
United Nations
Commercial Landmine Clearance Companies
Need to te
st
Need to te
st
Non-Governmental Organizations (NGOs)
Charitable Trust/ Foundations
Need to te
st
New claims
More reliable
New costs
Lower price
New costs
NSF / ICORP
• Target market– Commercial ~ 20 companies– NGOs ~ 30 organizations
• Package– Reusable wrist watch– Disposable sensors– Access to patients data
• Product development– 4 people in the beginning– $0.5 million– 1 year to develop
• Sales– Start with commercial landmine
companies end of year 1– Start with NGOs end of year 2
• Personnel – Average salary $80,000– Headcount from 4 to 50 in year 3
• Financing – UConn R&D: $50,000– Small Business Innovation Research
(SBIR)$70,000 – Looking for others
Key Assumptions
Price per unit: $ 4 /m2
Raw material ProfitFabrication and shipping
$ 0.7/m2 $3.3 /m2
NSF / ICORP
Key Financial Metrics
• Revenue adequate to cover costs in the short term
• Revenue will grow materially over time
• Profitability gets better as the revenues get larger
• Free cash flow (FCF, the sum of operating cash flow, financing cash flow, and investment cash flow) is stable
NSF / ICORP
Income Statement
Total Revenues
24,000,000
Expenses
1 Advertising
30,000
2 Cost of goods sold 16,800
3 Furniture and equipment
5,000
4 Insurance 20,000
5 Salaries and wages
320,000
6 Other
10,000
Total Expenses 401,800
Net Income Before Taxes
23,598,200
Income tax expense 9,439,280
Income from Continuing Operations
14,158,920
NSF / ICORP
Thank You!