Embedded Files
Business Structure
The business will be structured to be asset-light, however, the team will not be outsourcing manufacturing entirely to suppliers since that would greatly drive up costs in this case compared to manufacturing most of the components in-house. For this reason, the manufacturing machinery (injection molding presses and molds, and other tooling and machinery) will be owned by the business. Instead, the team will reduce the asset load by renting the real-estate portion of the required assets since those tend to be the most expensive.
The product will be sold indirectly, minimizing sales costs involved in setting up a sales team and in having a brick-and-mortar store for fulfillment, and the team plans on partnering with both online (eg. Amazon) and offline (eg. Walmart) retailers to maximize market reach and leveraging the existing distribution networks these giants hold.
The Administrative team will be very small for the first few years, with 4 members receiving an average of $100,000 in compensation yearly, in addition to their share of the profit.
Click any of the buttons below to learn about our manufacturing plan, cost model or financial forecast!
Page updated
Report abuse