The Green Machine. Ltd.
Cofounders
Lauren Bryan
Bridgette Harris
Julia Ngai
Jordan Reitz
Matthew Scheffler
Cecelia Vaughn
Yali Wang
The Company
The Green Machine ltd. has developed a new energy efficient lawn mower that will reinvent the way
you take care of your lawn. Going green saves your green!
Introduction
Everyone is busy working, studying, and feels very tired during the weekdays. However, we still have to
do many things that we do not want to do during the weekends, such as cutting the grass. Every time
when we think about cutting the grass, we know that we will be very tired, some people even have
allergies when they cut the grass.
The Green Machine is an efficient machine that includes:
-Green Machine is automatic, so you do not need to go outside to cut the grass. Once you turn on the
machine, it will cut the grass automatically. You can save your time and energy, and people who have
allergies will not need to go out into the suffering environment.
-Green Machine is solar powered. It can use the power of sun instead of gasoline, this helps us save
money and help protect the environment.
-Green Machine is very quiet, so you don’t need to worry about bothering your neighbor or worry about
contributing to noise pollution when it is working. We all know the regular machine is obnoxiously loud
and distracting.
The Green Machine Specifications
The Green Machine Offering
Sales
The Green Machine is around the same price as a riding mower, and even cheaper than a self- propelled
mower. The Green machine is solar powered, therefore saving money on gas, as well as saving our
environment from extra harm. The Green machine conserves energy and fossil fuels while gas powered
mowers release carbon dioxide into our environment. Green Machine is virtually an injury free product,
while other mowers cause thousands of injuries per year.
Convenience
The use of a Green Machine is going to free up time to focus on other things. Because it is virtually
hands-free, you just have to turn it on and then let it do the work. There will be no more worrying
about finding time to mow your lawn. The average lawn is about 7,000 sq. ft., which is about 1/6 of an
acre. It would take the average person about 30 to 40 minutes to mow on a riding mower or about an
hour with a push mower.
Safety
The Green Machine is the perfect answer for those people who have outdoor allergies, or have physical
limitations such as the disabled or elderly. It is great for people who haven’t been able to mow your
own lawn in the past, but now with the Green Machine, that will no longer be a problem.
Gas powered mowers cause thousands of injuries each year. More specifically, on average every year,
75 people are killed in mower related accidents, and anywhere from 40,000 to 80,000 people are
injured per year. Lawn mower accidents are actually the leading cause of major amputations in children
under 10- approximately 600 each year. With the Green machine, no one would have to be outside
while it was running, so these risks of injury are reduced.
The Green machine is also the safest option for our environment. Because it is solar powered, it does
not release any harmful toxins into the air. According to consumer reports-, mowing one hour per week
on the average riding mower consumes about 10 gallons of gas and releases 148 pound of carbon
dioxide emissions per year. On a riding mower, one hour of mowing releases the equivalent amount of
NO2 as driving a new car for 75,000 miles. According to the Environmental Protection Agency- 5% of our
nation’s air pollution come from traditional gas powered lawn mowers and people using gas-powered
mowers consume an average of 800 million gallons of gas each year.
Cost Effectiveness
The Green machine is also very cost effective. It is around the same price if not cheaper the average
riding mower. Due to the fact that it is solar powered, the owner will not have to spend any additional
money on gas.
Therefore, our team truly believes that every household with a lawn would benefit from a Green
Machine.
The Green
Machine
Self-propelled
mower
Riding mower
Push mower
$1,500
$3,500
$1,500
$270
Solar powered
Gas powered
Gas powered
Gas powered
Avg. lawn: Just
turn on machine
Avg. lawn: Total of
40 minutes
Avg, lawn: total of
40 minutes
Avg, lawn: total of 1
hour
Environmentally
friendly:
conserves
energy & fossil
fuel
Environmentally
detrimental
Environmentally
detrimental
Environmentally
detrimental
Retailers




Home Depot
Lowes
Sears
Any other Hardware Store
Red Herring Statements
"We run the risk of having increased returns if people can’t figure out how to set up and program the
Green Machine. In this day and age if people don’t keep up with the current technology they won’t be
able to do many basic things and they certainly won’t be able to get very far in the job market."
"Even after an extended number of cloudy days, the Green Machine will still run up to 50% of its full
capabilities, but the US has just recently start to come out of a three year long pattern of drought so
maybe in the near future we will continue to get more rain."
"If grass can be deterred from growing, then we could prevent the grass from growing in our
neighborhoods! Unfortunately, we haven't figured how to do that, so we have the next best option which
is to take the person out of the equation and let a machine control the height of the grass's length; I
guess we are one step closer to control of the growth of grass."
Leadership
The leadership of the Green Machine consists of Lauren Bryan, Bridgette Harris, Julia Nagi, Jordan Reitz,
Matthew Scheffler, Cecelia Vaughn, and Yali Wang. The leadership is very diverse in bringing different
attributes to develop green machine. The attributes ranges from accounting, finance, marketing,
management, information technology and human resources. All members have experience in each area,
but contribute in the area where they are the strongest.
The manufacturing of the Green Machine will be outsourced. By outsourcing the leadership will not
have to employ additional members to handle in the manufacturing. Outsourcing will handle the
development and mass production of the Green Machine and all other will be conducted internally. This
process will allow the leadership to minimize costs.
The leadership will also seek the help of college students and enable them to participate in an internship
program. If the decision is made to have interns in within the first year, they will be on an unpaid status.
Once the growth of the Green Machine increases, the leadership team will consider converting the
internship to a paid status.
Marketing
Demographics
The Green Machine Leadership has decided to target individuals aging from twenty- eight to fifty- nine.
The “late twenties” would be those individuals who are have started their career, but have to be the
first to have it, the innovators. These individuals have given up their city living life and moved to the
suburbs to settle down and start a family, in homes with yards. Having the newest gadget is like
“keeping up with the Joneses,” hope you are the Joneses, that your neighbor are keeping up with.
Individuals ranging from fifty to fifty- nine, would be in the early adopters. The reason why the Green
Machine Leadership is focusing on this group is that we see that these individuals are in the retirement
or in the retirement state mind. Yard work has become a new focus for these individuals. They have a
little love for a new gadget as well. Just as with the innovators, early adopters love their toys as well.
Creating the BUZZ
The Green Leadership has elected to enter the market by creating the buzz through social media. We
would like to get people talking about the Green Machine with just images. We will implement the feel
and touch, as we generate more buzz by attending Home and Garden trade shows and demonstrations
at home stores. Here our target market can feel and identify the size of the Green Machine. We will also
have a setup where they can see the Green Machine in action. During this time we will accept preorders
and once an agreement is made, our consumers can pick up the Green Machine from their local home
store retailer.
Metrics
The description of metrics begins with cost. Our cost for the first year is $2,620,000. This includes
production, transportation, labor, and marketing. We will meet our budget of $3,000,000 with an
investment from the venture capitalist. Time wise, we will produce 3,000 machines in the first year, and
we should meet this manufacturing goal as long as there are no issues foreseen with manufacturing. In
terms of a scope, we will break even with 790 units sold. We have a satisfaction guarantee, so we will
definitely meet our customers’ satisfaction. No problems should arise with our customers’ wants and
desires. With risks, we have insurance on the production facility in case of natural disaster, and we have
a backup manufacturer in case there are product discrepancies. In terms of communications, we will
have constant exchanges with investors in order to maintain the satisfaction of our investor(s). When
looking at procurement, we are on track with acquisition and management of goods and services. We
just need the investor’s capital. We do not have any unresolved issues in the category of HR issues and
actions; our investor’s capital is the last thing on the agenda. In terms of HR resources, labor is all set up.
It costs $300 to produce each machine, which includes labor, materials, and all other expenses. Our
other labor is $550,000, which includes sales reps, accountants, and marketers
Financial Projections
Variable Costs
 There is a factory that will charge us $300 to produce one Green Machine (materials, labor and
all other expenses included)
 Transportation to retailers will be $350 per unit
TOTAL VC per Green Machine= $650
Fixed Costs
-Labor Cost $550,000
1.
5 Sales representatives at $40,000 each = $200,000
2.
3 Accountants at $50,000 each = $150,000
3.
4 Marketers at $50,000 each = $200,000
-Advertisements $120,000
TOTAL FC= $670,000
Selling Price per Green Machine= $1,500
Breakeven: $1,500Q = $650Q + $670,000
Q = 790 units to breakeven
Breakeven
4000
3500
3000
Price
2500
2000
1500
1000
500
0
0
500
1000
1500
Units
2000
2500
-We are planning to produce 3,000 units of Green Machines in the first year
Total Investment Needed for the First Year
Production and Transportation
$
1,950,000
Labor
$
550,000
Marketing and Advertisements
$
120,000
TOTAL INVESTMENT
$
2,620,000
Return on Investment
Selling Price x # of Units Sold
$1500
x
3,000
(Revenues - Total Investment)÷(Total Investment)
($4,500,000 - $2,620,000) ÷ ($2,620,000)
Expected ROI =
72%
Revenue
$4,500,000
ROI
72%
3000
3500
The Green Machine (2014)
Cost Per Unit
Transportation Cost Per Unit
Total Cost Per Unit
Number of Machines
Total Variable Cost
Labor Cost
Advertisement Cost
Total Fixed Cost
Total Cost
$
$
$
300
350
650
$
$
$
$
$
3000
1,950,000
550,000
120,000
670,000
2,620,000
Price Per Unit
Number of Machines
Total Revenue
$
1,500
$
3000
4,500,000
Return on Investment
72%
Expected Goals (2014 - 2016)
Year
2014
2015
2016
Expected # of Units to be Sold
3000
4000
5000
$
$
$
Expected Revenues
4,500,000
6,000,000
7,500,000
All expected goals are simply estimates. These rates could vary depending on the sales of the prior year
and the demand of the product.
With all other expenses being accrued as well, we have listed Income statements below for the 3 years
of the product life.
Projected Income (2014 Statement)
Sales
Cost of Goods Sold
Gross Profit
$
$
$
4,500,000
(1,950,000)
2,550,000
OTHER EXPENSES
Advertising
Wages
TOTAL OTHR EXP
$
$
$
(120,000)
(550,000)
(670,000)
NET
$
1,880,000
Projected Income (2015 Statement)
Sales
Cost of Goods Sold
Gross Profit
$
$
$
6,000,000
(2,600,000)
3,400,000
OTHER EXPENSES
Advertising
Wages
TOTAL OTHR EXP
$
$
$
(120,000)
(550,000)
(670,000)
NET
$
2,730,000
Projected Income (2016 Statement)
Sales
Cost of Goods Sold
Gross Profit
$
$
$
7,500,000
(3,250,000)
4,250,000
OTHER EXPENSES
Advertising
Wages
TOTAL OTHR EXP
$
$
$
(120,000)
(550,000)
(670,000)
NET
$
3,580,000
Conclusion
The Green Machine is your green alternative to becoming more economically friendly. By investing into
the green machine, you are not only benefiting your environment, but you are also benefiting yourself
by investing into a company that will have an expected growth by the years since we are the forerunners
of this project. Here is a simple synopsis that will help persuade you into becoming an investor for our
product.
 Within two years, the Green Machine company will have generated back the investment and
will be able to invest in paid internships.
 Your investment would be paid back within the first years of sales.
 The Green Machine has only the finest Administrative Team that any company could benefit
from.
 Highest quality technology available on the market!
 Only Eco-Friendly sources are used to develop the product.
 Every household with a lawn would benefit from a Green Machine.
o Time Saver
o Energy Saver
o Eco-Friendly
o No Extra Costs
 The Green Machine is the forerunner for Solar Powered Automatic Lawn Mowers.
o This will establish us as the trustworthy brand