Rosafarbenes Nilpferd & Sons Engineering, Inc. has established a strong foothold within a niche market for Product Category One* device technology. The potential market demand of 180million units outpaces current suppliers. It is also growing at 22% per annum. RNSE’s success in taking advantage of this boom market is evidenced by its recent growth in sales and profitability. The company’s sales are expected to increase from $280,000 in the first quarter to $1,600,000. By the end the first year, they will have reached $14 million. Similar growth will lead to significant increase in profits before taxes by Year 1 and continuing to grow through Year 3. These results will be achieved without large additions to fixed assets. A relatively small banking facility will be needed in the form of a line of credit of $150,000-$200,000 to support the necessary growth in current assets, half of which will represent prime corporate receivables.
*Note that this sample plan does not contain any confidential or improper information.
Rosafarbenes Nilpferd & Sons Engineering aims to become the top-rated manufacturer of Product Category One Devices with the latest technology.
- Complete work to make RNSE’â€™s products compatible (by the end month 5, Year 1 and at least three additional within a single year).
- Complete a thorough website redesign and get out a quality mailer to 300 Value Added Resellers (VARs) (by end Month 6, Year 1).
- After completing a media analysis, organize an effective advertising campaign in trade journals to target the telecommunications (industrial automation) and instrumentation sectors.
- By networking and partnering operating system developers, technology manufacturer, and other industry actors, you can arrange at most five banners/links in a reciprocal arrangement with key market-related sites.
Rosafarbenes Nilpferd & Sons Engineering’s mission is to create cutting-edge Product Category 1 solutions to appliance and equipment manufacturers who are often under pressure due to technology’s rapid pace to bring their products to market quickly. RNSE does this by having a small “:think tank-style technical team and outsourcing manufacturing. It also keeps a marketing offering that caters to the most demanding Product Category One needs, while leaving the simple, high-volume, price-sensitive market requirements to the competition.
This sample plan does not contain confidential or proprietary information.
1.3 Keys of Success
There is such a high demand for Product Category 1 devices that the growth potential is almost insurmountable. However, it is possible to sell them successfully if you keep these key points in mind.
- Contract manufacturing of devices is possible, provided you have enough components. Careful planning in ordering sensitive components is essential, and sufficient financing must be in place to support long inventory periods.
- Avoid excessively time-consuming questions originating outside of the targeted market. Technology is a topic that interests everyone. It is crucial to filter through the inquires and respond to those that are within your sales and market parameters (needs between 100 to several thousand units, for high-end equipment).
- Move quickly to build a brand awareness for cutting-edge reliability. It is possible that there will be more competition for Product Category 1 devices. It will be even more difficult later to build an image.