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One Step Home Brewing Kit sample essay

There are a lot of home brewing kits available in market but all have a typical problem associated with it. We have come with a new “One Step Home Brewing Kit” based on our patented technology. Soon we plan to launch it in market. We did a market research for such product and gained a lot of valuable information. Based on all those observations we have come with the following plan. We would be operating through internet instead of setting up a shop for it, at least for the initial phase. Not only it reaches to more people but also is more convenient to operate.

We won’t run the website ourselves but would outsource to a separate company. Our research shows that outsourcing would be cheaper. We have finalized our hosting company and hosting plans. The initial one time cost comes to be around $10,000/-. Regarding our financials For the first month our primary target is set our infrastructure right. We need to get comfortable with the setup, optimize our settings. So, for the first month we won’t be spending much on advertising but would mainly focus on our acquaintance and word-of-mouth publicity to get our customers.

We have kept a modest sales target of 100 units. Each kits selling 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 product. The setting up process will take around 20 -25 days. From the last few 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 business firm. In the second month we expect sales of around 500 units. This increase is expected due to increase in our advertising and the positive feedback given by our customers for our product. We ourselves have no doubt that our product is best and hence expect strong positive atmosphere for our product in the market. To cater to this increasing need we would need to purchase a new computer and hire an operator for that.

The New system’s cost is put in office equipment expenses field. This would increase our staff from 1 to 2. We also would have to work in those positions to curtail our staff requirements For the 3rd 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 quarter’s corrective steps. We will 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 2nd year we will try to outsource some of our processes like dispatching, packing 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 some new product. We will first be looking to bring some product that would complement our product. Also we may 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 volume of sales of our existing product. This year we will definitely setup our R&D if they are not setup to the full extent in the second year.

As the world is progressing fast 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, Mobilize our staff to specific positions. This is our plan till now and we hope to surpass it every month, quarte

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