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Overall:
With the Tool Master 5000, which has been shown to be popular with consumers, we needed to research how to take it to market.
Market:
The current tool storage market is estimated to be $1.7 billion. By 2032, this is expected to nearly double to $2.5 billion. This market has remained very steady in the types of products seen, we believe a new storage solution could turn a lot of heads.
Since our product is a new concept in a somewhat boring and steady market, we expect the TM5K to turn a lot of heads. We believe that we can comfortably capture 1% of this market, which equates to $25 million in business.
We foresee that two major growth factors for the TM5K would be the growing popularity of the DIY market and the rapid urbanization of the US and the world.
Strategy:
We hope to secure funding through Angel Investors, Venture Capital Firms, and potentially crowdsourcing (since this product would have a large DIY presence). These groups would hopefully help connect us to sources to make this possible and provide the funding to large-scale manufacture the product to launch. We would go through channels such as direct sales online, social media, and once large enough, through home improvement stores (such as lowes)
BusinessModelCanvas.pdfIntellectual Property:
As for IP, we would protect our design through utility patents, since there are similar products that don't fit the same scope, we believe the idea is novel. A patent would give us enough time to move to market and establish a name that people respect and trust. We would anticipate other companies copying the idea and, therefore, would need to have a good legal team to combat this.
We have researched other similar products and have created a document of similar patents shown below.
Operating Plan:
For a few key milestones in getting the product to market, we have planned the following:
Continue prototyping, researching, and iterating designs to a minimum marketable design: 0-1yr out (continue current path)
Secure funding: 1-2yr out (reach out to angel and VC investors)
Continue to iterate and improve quality: 1-3yr out (with funding, can do better testing and designing)
Release online: 3yr out (after successful testing)
Release in home improvement stores: 5yr out (after successful small release)
Financial Analysis:
To move toward market we have estimated a few key financial figures to see what we can continue to improve.
Initial cost to take forward: $50,000
Sale price: $499.99
Manufacturing cost: ~$100
Per unit profit: ~$400
Sales Projection: ~500 Units/first year
Total Profit Projection: ~$200,000
Breakeven sales projection: 100 units
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