Spark Life Business Plan
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Transcript of Spark Life Business Plan
A Digital Safari GreenBizz Company
Chief Executive Officer: Willey RilloChief Financial Officer: Alexandra SangalangVice President of Marketing: Ricardo Martinez
Mount Diablo High School2450 Grant StreetConcord, CA 94520
Our company is called SparkLife, Incorporated and is based on creat-
ing new ways to power up electronics. We created a better, alternate way to
power an electric car called the TurboSpark. The TurboSpark is a power sys-
tem that we will implement into a car so that it can be powered completely
by electricity. Our product uses energy through capacitors, which are small,
metal, and chemical-free plates that are able to be charged with electricity
and can be utilized at later times. We created the TurboSpark because the
use of hybrid and electric cars is starting to rise and the technology sup-
porting those types of cars is being encouraged. Also, we at SparkLife aim to
reduce the use of regular car batteries due to their use of dangerous chemi-
cals that can potentially hurt the environment through pollution. These
chemicals can even harm humans directly, so the TurboSpark was created to
completely eliminate these hazards.
The TurboSpark, as stated earlier, is a capacitor powered energy
source for cars. We shall propose to car companies to create a new model
around our TurboSpark system. It’s designed to be placed where car batter-
ies would normally be, but would take up more space to match the capacity
of a car battery. Capacitors have a quick charging time and will be able to
go to 300 miles on one charge under regular use. The TurboSpark will be
compatible with nearly any outlet.The price of the TurboSpark will be $7,500
per system, covering the materials and is a current competing price against
other electric car companies.
The TurboSpark has an opportunity to enter the market with the
growing research and use of hybrid and electric cars. Also, regular cars take
up limited resources, such as gasoline, that without caution, could be deplet-
ed in the near future. Disposal of regular batteries is also a great concern as it
creates pollution through toxic chemicals that should not be left unchecked.
Greener options for practically any product are also being researched and
produced, so creating a non-chemical car power source and reducing use of
lead-acid and lithuim-ion car batteries is a perfect opportunity for us.
E x e c u t i v e“Changing the w
orld, one car at a time.
SparkLife plans to advertise the TurboSpark to the public by first
selling to already famous car companies such as Toyota, Honda, General
Motors, etc. Selling to other companies will help us avoid the hassle of con-
vincing the public that our product is good since they are already trusted
companies by the public. Afterwards, we plan to advertise our TurboSpark
system through multiple kinds of media such as television, magazines, radio,
and online advertisements.
We at SparkLife hope you will fund our company with a total of
$4,000,000 for our operations. With that money, we can drive towards the
future of automobiles as well as to a greener future without the use of
chemically-filled batteries that could harm the environment and us as well.
With the help of you and our CEO Willey Rillo, CFO Alexandra Sangalang, and
VP of Marketing Ricardo Martinez, we hope to charge up the future.
S u m m a r yCh
angi
ng th
e en
ergy
, one
car
at a
tim
e.”
C o m p a n yM
issi
on
Sta
tem
ent/
Co
mpa
ny
His
tor
y
Founders Willey Rillo, Ricardo Martinez, and Alexandra Sangalang met in the Digital
Safari Academy and later again in the University of Phoenix for their physics class, but what
they didn’t know was that meeting each other would result in creating a company together
in the future. Their physics professor demonstrated a strobe light to the class and taught
how a capacitor, an energy storage device much like a battery, but capable of charging and
releasing energy much faster, works. History records show that German scientist invented
the capacitor in November 1745. Several months later Pieter van Musschenbroek, a Dutch
professor at the University of Leyden made a capacitor in the form of the Leyden jar, which
was credited as the first capacitor. Fascinated with the origin and the ability of the capacitor,
the three believed in the potential of the capacitor to be an alternative power source for an
important machine in everyday life: a car. During their free time and on the weekends, they
all decided to map out plans for a new way to power cars, and were dedicated to improve
all aspects of the project. After graduation, the trio decided to create the company SparkLife
Incorporated, believing that large amounts of energy should now come in small packages.
SparkLife, Incorporated is dedicated to revolutionize the car industry
through changing the standards set by companies before us.
Vic
e Pr
esiden
tO
f Mar
keting
Born in Walnut Creek, California, Ricardo
Jose Martinez is the VP Marketing director for
SparkLife. He got his degree of marketing at
the University Of Phoenix in Arizona. As part of
Mount Diablo High School’s Digital Safari Acad-
emy, Ricardo has partaken in projects such as cre-
ating plans to help third-world countries, as well
as creating a spoken word poem with accompa-
nying video. He also has experience working in
stores, which became helpful in his choosing to
pursue a degree in Marketing. His background
was hard for him in the past to focus in his life
dream to change the world.
P r o f i l eC
hie
f F
inan
cia
lO
ffic
er
Born in the Philippines, Sangalang earned a
Bachelor of Science Degree in business administra-
tion from the University of Phoenix in Arizona. She is
a devout Jehovah’s Witness, with much of work done
in the field spreading knowledge of her beliefs. Along
with that, she, like her fellow officers, was a part of the
Digital Safari Academy, creating a music video for “Tell
Me Something Good” by The Rocket Summer. She has
also collaborated with groups to create documenta-
ries as well.
Alexandra Sangalang, chief financial officer, is re-
sponsible for ensuring that the flow of money within
SparkLife Incorporated is conducive to profitability,
and also promotes continuous financial progress.
Other areas of responsibility include accounting, tax,
budget, treasury, insurance and credit.
Born in Vallejo, California, Willey Rillo is the pillar
of SparkLife, Incorporated. He was brought up
with interest in the creative arts and was mani-
fested in his work in the Digital Safari Academy
of Mount Diablo High School. There he learned
about music, photography, and film production.
His projects include creating songs and accom-
panying music videos, filming a two-part docu-
mentary called “Details in the Fabric”, and more.
Through the academy, he was also part of an in-
ternship program where he worked in John Muir
Health as part of the techincal support team.
He later graduated from the University of Phoe-
nix in Arizona with a degree of Master of Business
Administration and led his fellow officers into
creating SparkLife, Incorporated.
Ch
ief Exec
utive
Offi
cer
Features
•Fast Recharge
•Can charge/discharge
•Lasts for a lifetime
Consumer Benefits
•No risk of explosions
•Save time and money from gas
•Pay less to use car (electricity)
Environmental Benefits
•Chemical-free
•Reusable
•Biodegradable
P r o d u c t Cars are the prominent mode of transportation, and loads of chemi-
cals are in each car battery. Problems with car batteries mostly occur during
warm weather, and heat causes the chemicals inside to evaporate. Used bat-
teries also end up as electronic waste.
SparkLife, Incorporated introduces the TurboSpark, an alternative
power system for cars that will eliminate the hazards of a regular car battery
through the usage of capacitors. The system makes it perfect on the go, and
can charge and discharge whereas a regular battery can’t.
“Changing the world, one car at a tim
e.
D a t a S h e e tCh
angi
ng th
e en
ergy
, one
car
at a
tim
e.”
M a r k e tO
ppor
tun
ity
Electronics are important everyday factors for each individual, espe-
cially battery-powered ones. Globally, the battery market is about $50 billion,
and $5.5 billion is set aside to secondary or rechargeable batteries. Technol-
ogy continues to grow, driving battery supply and demand to increase as
well. Primary batteries, like alkaline, dominate market because of their higher
energy densities, and will lead the market as years go by. Editor Sam Davis for
Power Electronics Technology reported that there is a need for batteries for
medical devices because of the growing amount of senior citizens. Research
is being made for looking at alternate sources to power batteries besides the
dominant alkaline battery. New chemistries made will make up less than 7%
of all secondary batteries. Our product can address these needs by decreas-
ing demand for batteries by being a long-lasting product, which could
lower the prices of batteries. With the demand of batteries increasing 2 to 3
percent annually, it shows that there’s an opportunity of venturing into the
power source market.
Secondary batteries, like the commonly-used lead-acid and lithium
ion, are an alternative to primary batteries. But being rechargeable, they wear
down over time and lose their energy sufficiency. Rechargeable batteries
help reduce the number of batteries requiring disposal, yet 80% of them
have nickel cadmium. This component is also harmful for the environment,
so they’re no different. Unlike regular and rechargeable batteries that power
up electronics chemically, the TurboSpark consists of millions of conductor
plates, and when electrical voltage or a power outlet is applied to the plates,
they will become charged, one positively and negatively. When the voltage
is removed, the conductor plates remain charged and electricity is pres-
ent between the plates naturally. The TurboSpark is acid and chemical free,
that even disposing it will not affect the environment in a negative way. The
Freedonia Group Inc., which is an international business research company,
predicted a US demand of primary and secondary batteries of $14 billion by
the year 2007, which was met and is expected to continue to rise.
A n a l y s i sA
nal
ysis
Furthermore, based on BatteryUniversity.com, by 2012, the demand for alka-
line will reach a staggering $4 billion alone, and lead-acid will reach an even
greater demand of $6 billion.
Cars are the prominent mode of transportation, and the hybrid and
electric car industry is $29 billion globally, and is expected to rise to almost
$65 billion by 2015. A car battery alone has 18 pounds of lead and a pound of
sulfuric acid. The TurboSpark would power up a car in a more environmentally
friendly way. Without having to deal with the same environmental risks as a
regular battery would, the TurboSpark would be a much more efficient use
of our resources.The average life of a car battery is three and a half years, and
even shorter in warmer climates. Warm weather is the time where car bat-
tery problems mostly occur, because heat causes battery fluid to evaporate,
damaging the internal structure. The National Car Care Month inspection
campaign had a statistic of battery cables, clamps and terminals needed
maintenance in 13 percent of the vehicles and seven percent of the batteries
were not properly held down. Our aim with the TurboSpark is to decrease the
use of regular car batteries or to make it a better choice to have, limiting the
environmental hazards of batteries.
The TurboSpark could meet the growing demand of environmentally
friendly products. According to a survey given through SustainableBusiness.
com, 35 percent of the people that answered stated that they were willing to
pay more for environmentally friendly products. It may seem small, but it has
definitely been growing over the past few years, with many products hav-
ing offers for greener options. In terms of food and beverages, there’s been a
growth of sales from 2006-2008 on natural and organic foods, and is expected
to grow another 20 percent from 2010-2012. On the other side of the spec-
trum, beauty and personal care products have also had an increase in sales for
greener products, from 2006 to present. This shows that people are not only
focusing on their needs, but are willing to invest in something they want to
buy as well.
M a r k e tC
om
petitive
Our competition consists of car companies that sell hybrids and
electric cars because they’re using electricity as an alternative source of
power for cars. The benefits of electricity for powering up cars are that it’s
cleaner and inexpensive as well. The TurboSpark aims to be an alternative to
batteries in cars, consisting of thousands of capacitor plates made of metal,
hidden behind the car’s exterior, and functions by storing electrical charge
applied to be used later. One example of our competition is the Nissan Leaf
SL is powered up by a 24kWh lithium ion battery that experiences a reduc-
tion in the amount of electricity or charge it can hold over time, resulting in
a reduction in the vehicle’s range. Their power meter indicates the regenera-
tion power level provided to the lithium-ion battery system and the energy
power consumption level when driving. When the battery has 4kWh remain-
ing, the empty warning light will come on as well. Our product is the same
in the matters of not lasting longer than a regular battery, but the life stays
consistent. An interesting feature of the Nissan Leaf is that their spoiler is also
a solar panel, so this can charge the essentials of the car without having to
drain the battery. The TurboSpark supports the solar and wind alternative en-
ergy as well, acting as a storage option for power received from a solar panel.
Driving and storing the Leaf in extreme temperatures will reduce battery
capacity, and also repeatedly recharging for a quick charge several times a
day. Our advantage is that no matter how quick the charging and recharging,
the metal plates inside the insulator will never wear out its energy capacity,
which is convenient for drivers who want to recharge to make sure their car
won’t run out of energy while driving long or short distances. A regular car
battery’s exposure to overheating and overcharge will lead to cell rupture,
and in extreme conditions it will be at risk of explosion. The TurboSpark has
no chemicals involved, so no fire or explosions can happen.
Another car company that’s another potential competitor is Chev-
rolet, and their new car is the 2011 Chevrolet Volt, powered by electricity
without being tethered to electrical outlets. The volt battery is Lithium-ion as
A n a l y s i swell, having went through environment-specific tests, like corrosion and hot
and cold weather testing, and customers would only have to pay $1.50 of
electricity per day. The Volt can be fully charged in about 10 hours, but with a
car filled with millions of tiny capacitor plates, our product could fully charge
a car less than 10 hours, because its advantages are rapid charging and can
take as much energy as needed. There is no memory or danger of overcharg-
ing capacitors so full-charge detection is not needed. Even if full, they just
stop accepting the charge. Virtually, they can be recharged and discharged
for an unlimited number of times.
Ford’s Fusion Hybrid car was awarded the North American Car of
the Year in a Detroit auto show, also named Motor Trend’s Car of the Year.
Most Hybrid car batteries are either nickel metal hydride, or lithium-ion, and
the market for lithium-ion batteries is rapidly expanding as an alternative
to the nickel-metal hydride batteries, which have been utilized in the hybrid
market. Batteries are big and heavy, while capacitors are small and light. The
plates have no corrosive electrolyte and low to no toxicity of materials. Spare
parts for a hybrid car can be hard to find, but a car filled with capacitors will
be easy to replace since SparkLife will offer repair services for our customers.
Solite Battery
AutoZone(Gold-Duralast)
InterstateBatteries
(Toyota Corolla 2009 model)
SparkLife, Inc.
MaintenenaceFree
Easy Install Indicator/Power check
Chemical-free
(TurboSpark)
Long-lasting
X
X
X
X X
X X
X X X
XX
X
X
An
alys
is
M a r k e t
Demographics:
Our customers will have to be the makers of cars, who in turn, their
customers will be drivers of those cars. The car companies would have to be
companies who are currently developing or have already developed greener
alternatives to gasoline-powered cars. As for the people buying the cars,
their age range would match the age range of drivers, which is 16 and up.
Geographics:
Cars and car batteries are being sold everywhere in the nation. They
are sold in practically every major area in the country, so we would be able
to sell our product to any car company to manufacture and sell to anyone
around the nation.
Psychographics:
Our customers for the TurboSpark system, in terms of psychograph-
ics, would be those who are less willing to pay for the rising prices of gas
and are buying hybrid and electric cars. They would be people who are con-
cerned with the overusage of our resources as well as those who are against
the pollution of the air. Another thing a customer would want in this kind of
product is ease of use and time efficiency. The TurboSpark is rechargeable in
the same way as regular rechargeable batteries, by plugging it into an outlet.
Due to the capacitors in the system, the charge takes up little time, much
better than already existing electric cars.
Cu
stom
er
A n a l y s i s
This graph shows the demand of batteries now as well as a prediction for
how much the demand will grow. SparkLife conducted a survey to random
passerbys in a park and asked them if they would be willing to buy an
alternative power source like ours. The answers the gave matched what this
graph shows, and that they would buy a car using our capacitor system at a
reasonable price.
This graph shows the sales of cars and usage of gas weekly. What this graph
is supposed to show is that there is a market for a new power system for
cars. Also shown is a graph of 2010’s weekly retail price per gallon, which is
steadily increasing up to $3 a gallon. From an interview with a random pass-
erby, they said that they would rather pay for electricity than gas and would
want to buy our product as long as it save them money.Pr
ofi
le
M a r k e t i n gP
ro
du
ct SparkLife, Inc. has developed a new power system specifically made for cars called the
TurboSpark. Our product uses millions of capacitor plates as opposed to a lithium-ion or lead-
acid battery to power the car. Capacitors are small metal plates that are able to store electricity
which can be utilized at later times. The capacitors will be placed within a casing similar in size to
a normal car battery. As for the capabilities of the capacitors, they have the ability to be charged
faster than the batteries of electric cars and last just as long as a charge from a regular recharge-
able battery. The TurboSpark system is chemical-free, which means that unlike regular car batter-
ies, there are no fire hazards at all, making the car much safer as well as being emission-free.
The system will be sold as a car that is based around our TurboSpark system. As for the
features it gives the car, it allows the car to go from an estimated 250-300 miles per full charge
and can go from zero to 60 miles per hour in seconds. Our design has the TurboSpark system
implemented at either the base of the car or within the frame of the car, depending on which is
more efficient on different models. Our system will also have specialized support for it, training
and certifying specific people to repair it around the country in repair shops.
Pr
icin
g
The TurboSpark power source system will be about $7,500 which would cover the many
capacitor plates, the size of the product, knobs for adjusting the voltage, plastic coverings, and
wirings that it would have. The product’s price is also based on a car company named Tesla, in
which the prices for car battery systems near $7,500, so we believe it’s reasonable to have the
price near theirs. The TurboSpark is lightweight which another factor to its price, and it’s not
heavy and bulky like regular car batteries. Different types of other capacitors being made are
PET film capacitors, which use polyester film as the dielectric, or the electrical insulator that
may be polarized by an applied electric field. Glass capacitors use glass as the dielectric and are
reliable, stable, and resistant to nuclear radiation, but expensive. The lithium ion capacitors are
a new technology and have a higher power density as compared to batteries. Since capacitors
would be a new power source for cars, the price would be a little costly as well. But cars powered
by electricity have significantly fewer moving parts which will then lead to less expensive main-
tenance and eventually lower production costs. If ever a car company wants their cars to have
our power source system as well, we would partner up with them and sell our goods to them. In
the future, SparkLife Inc. plans to improve the product as years go by, so discounts are applied to
our old models.
P l a nP
lac
emen
t
First, we will manufacture the
actual TurboSpark within our own facil-
ity. Afterwards, we will send the units
to car companies for them to produce
cars based around the TurboSpark.
There, those companies will sell the
car along with our TurboSpark system
through their distribution methods.
Those car companies will send their
cars to retail stores for their customers
to purchase. Once SparkLife becomes
more successful, we plan to distribute
the system itself through both internet
orders and retail stores.
We have planed to show off our new system through print advertisements in car maga-
zines. We decided this because people tend to look at those magazines before purchasing a car.
After the TurboSpark gains momentum in the market, we will add comercials to our marketing
campaign. We plan to air these around 6:00pm and on channels that show sitcoms. We chose
this because drivers, our target customers, are usually working until then. Once they’re home,
they tend to unwind by watching these kinds of shows. We believe that will get the most viewers
that would be interested in our product. With all these advertisements showing the TurboSpark
people would get interested on how our system works and want to see its potential as a good
clean alternative power source for electric cars.
Pr
om
otio
n
L i f e C y c l e Every product made comes with costs and
benefits through its entire existence. In our case, we
decided to obtain the materials needed to make a
capacitor power source here in the United States.
Factories that will make the materials will create
smoke, causing air pollution. In order to get the met-
als for the plates, our company will have to mine, but
loss of biodiversity, and contamination of soil occur in
chemicals from mining processes. We will also be re-
cylcing any materials that are sent back to us through
the disposal and recycling process stated in step five.
Metal, plastic, rubber, and
wires are the main materials that are
need to create the TurboSpark. We
will manufacture our product within
our own facility in Colorado, due to
many of the resources needed are
available there. Our construction
method will have assembly lines in
order to maximize the amount of
TurboSpark units produced.
2. Man
ufac
tur
ing
We will transport the TurboSpark from
United States to other companies mainly by
cargo planes and trains, depending on the area
we send them to. Cargo planes would be used
if we were to send them to overseas compa-
nies. Airplanes will be much faster to send than
ships, but would be much more costly com-
pared to cargo ships. If the TurboSpark systems
are being sent to companies within the United
States, then trains are used. When transporting
in the company, we believe time will be less of
an issue compared to cost.3. T
ran
spo
rta
tio
n1.
Aq
uir
ing
A n a l y s i s Use of our product would decrease the
use of gas and oil, because only electricity is used
to power up the car. Using electricity allows the
car get better mileage as well as the fact that
it’s emission-free. No pollution in the air will be
involved because it’s powered by an alternative
source. It doesn’t make noise since it’s not pow-
ered by gasoline, and since electricity is used, it
take a lot of energy to power it up. In terms of
costs though, paying for electricity for the charge
is more cost-efficient than paying for gasoline.4. U
sin
g
Although the TurboSpark should not
have to be disposed under normal use, it can be
disposed of and recycled through a system that
allows us to acquire the old system, take it apart or
refine it to be put back into use. Should the system
be beyond repair, we can salvage any parts still
usable and recycle the leftover plastic, rubber and
metal. This way, we will be able to efficiently reuse
any systems that are sent back to us.
5. D
isposal
F i n a n c i a l We plan to sell the TurboSpark to car companies within the first year of business to have
them test it out and create prototypes around it. In the first year, we plan to produce 700 Turbo-
Spark systems, which is 0.5% of the hybrid/electric car market. This number is based off of the
annual sales of hybrids, in this case, the Toyota Prius. The amount they sold within one year aver-
aged to about 140,000 models. We chose to limit our production to minimize costs of operations
in the beginning. We also limit the amount produced because we plan to only have companies
test out the TurboSpark rather than have it penetrate the market immediately.
After a two year testing period, we plan to have it penetrate the market. At this point, we
would make enough TurboSpark systems for about 1-4% of the hybrid/electric market as each
year passes. Production is expected to spike up to almost 9,500 units by the end of the five years
once the TurboSpark officially enters the market. This is realistic due to that hybrid car produc-
tion and use is constantly increasing, with today currently having an annual sale of 940,000 glob-
ally. It is also realistic due to the fact that other companies will not yet implement our system
and may be testing it or not even using it. Hybrid/electric cars are becoming the new trend for
reducing pollution and saving money, so it will pick up its pace as the future for transportation.Sal
es/R
even
ue
Gr
ow
th
For the purposes of this project it is assumed that the operations budget for our company comprises
65% of our revenue and is composed of the following individual items:
•Property in Colorado for manufacturing
•Machinery and electricity
•Labor and management
•Transportation/Delivery Services
Oper
ation
sB
ud
get
P r o j e c t i o n sFor the purposes of this project it is assumed that the cost of goods for our company’s
product comprises 50% of our revenue and is composed of the following individual items:
•Metal
•Plastic
•Conductive Wiring
•Silicon
•Rubber
•Concrete (for facility)
•Solder
•Capacitor plates
Co
st of
Go
od
sS
ou
rc
es/U
se of fu
nd
s
The money that SparkLife gets are
from loans from banks, and funds from partner-
ship with major car companies. The operations
budget and sales and revenue growth for the
TurboSpark will be our top priorities, because we
believe that in order to penetrate the market, we
first pitch in our ideas to companies and form
partnerships with them. After being approved
by major companies, then advertising will be
the next step to make our product known to the
public.
Ad
ver
tisi
ng
/M
arke
tin
g
Exp
ense
s
For the purposes of this project it is assumed that the cost of goods for our company’s
product comprises 30% of our operations budget, paying for magazine, billboards, and other
print advertisements. Within the first year, we are planning to spend approximately $1.15 million
on those advertisements. An estimated $30,000 will be used on billboards while $560,000 will be
used annually on print advertisements. These will be focused on magazines about automobiles.
The rest will be focused on prototype demonstrations for companies we plan to partner with.
Later on, we will focus on commercials once our product gains popularity. Marketing the TurboS-
park is essential to increase sales of our system and our target customers, which are car companies
and drivers, will be drawn in to the advertising of our new power system for cars which is both
beneficial and environmentally friendly.
F i n a n c i a lF
irst Y
ear
P r o j e c t i o n sF
ive
Yea
r
Sp
ar
kL
ife
, Inc
.Charging up the future.
Sp
ar
kL
ife
, Inc
.Charging up the future.
We’ve revolutionized the w
ay your car runs. The TurboSpark is the future for the power source of autom
obiles.
in small packages...
Big things should come
You’
re n
ever
too
old
to im
agin
e.
Sp
ar
kL
ife
, In
c.
Char
ging
up
the
futu
re.
Char
ging
up
the
futu
re.
We’
ve re
volu
tioni
zed
the
way
you
r car
runs
. The
Tur
boSp
ark
is th
e fu
ture
for t
he p
ower
sou
rce
of a
utom
obile
s.