Up Up and Away
Business Plan for a New Walker Design
12/7/10
The Waka Waka Company
Rohan Agarwal
Shira Bennett
Nancy Lai
Andy Raina
Business Objective
Maximize profit by providing a solution to
an unmet need in the market of elderly
care and assistive devices
Current State
Assists in standing
Up Up and
Away
Assists in walking
Product Description

Up Up and Away

Sells at $120 each

Feet

Folding Mechanism

Adjustable Legs
Market Identity





Male or female
Over the age of 75
Diminishing physical capabilities
Strong desire for independence
Require help



Standing up
Walking
Transportation
Market Share: 2011


Current elderly population: ~19,000,000
Rate of population growth: ~152,000
5%
2010 users who stay
with their current
device
Current
Walker Users
2011
Population
Without
Walkers
4.6%
New Walker
Users
77%

Current Target Market: 49,000 and increasing by
350 people/year
New 2011
users who
purchase a
different
device
New 2011 users
who purchase the
Up Up and Away
2010 users
who
purchase
the Up Up
and Away
Capital/ Personnel Resources
Initial Costs ($)
Machinery
4,000,000
Legal
50,000
Total
4,050,000
Annual Fixed Costs ($)
Labor
1,250,000
Rent
240,000
Utilities
154,000
Miscellaneous
25,000
Marketing
50,000
Total
1,719,000
Annual Variable Costs ($)
Cost / Unit
26.32

Machinery


Labor


25 employees at $50,000/year
Rent


8 at $500,000 each
$8/square foot/year
Cost/unit



Materials
Manufacturing
Assembly
Breakeven Analysis
Initial Investment
$4,050,000
Annual Fixed Cost
$1,719,000
Annual Variable Cost
$983,500
Annual Revenue
$4,483,500
Discount Rate
6%
3
Salvage Value
$405,000
2
4
Breakeven Point:
End of 2nd year
1
0
Net Balance
0
(mil $)
-1
-2
-3
-4
-5
1
2
3
4
Year
Pro Forma Summary
6,000,000
Year 1
Year 2
Year 3
Total Cost
6,772,137
2,678,858
2,685,580
Revenue
4,345,608
4,376,253
4,406,899
Profit
(2,426,529)
1,697,395
1,721,319
4,000,000
2,000,000
Total Cost
0
Revenue
Profit
-2,000,000
-4,000,000
-6,000,000
-8,000,000
Year 1
Year 2
Year 3
Investment Summary

Requesting initial start up of $6.8 million

Pay back initial investment in 2 years

Divide 10% of profit between investors in years 3 and 4
THANK YOU
QUESTIONS?