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Here we outline our proposed business model and estimation of future costs.
Business Plan
A couple notes ...
Key Partners
For the future of our product, we are considering expanding our customer base to buyers in the hospitality and housing industry i.e. hotels, apartment buildings. This way, we simply provide the device and other services such as maintenance while these partners bring the users.
Customer Relationships
While we plan to support our customers by providing repair and maintenance services, we realized that in accordance with our Sustainability Goals, we can alos provide end-of-life removal and recycling services for our product. By taking on the proper disposal of our device and its parts, we relieve our customers of more work and can better manage our environmental impact as a manufacturer.
Cost Estimates
For our fixed costs we included annual cost estimates for a small factory, amenities, and advertising. We also supposed we has one part-time manufacturing supervisor overseeing operations.
We determined our variable costs using the actual cost of our final prototype (correcting for future materials) and adding labor costs of processing and distribution.
With these estimates, we determined a break-even volume for 1 year, as shown below.
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