Term Paper on "Science Business Plan Entry Science Is Funding"

Term Paper 4 pages (1160 words) Sources: 0

[EXCERPT] . . . .

Science

Business PLAN

Entry Science is funding to grow its sales of the CLAMP ankle device for small ankle sites. This will allow the company to expand sales. Entry Science was created with the mission of developing novel ways to enable Ankle devices site opening.

THE PRODUCT

CLAMP is an ankle device that represents a breakthrough in the ankle market. It is an enabling technology that will allow ankle surgeons to enter through the foot open ankle points greater than 4-Mm in size. CLAMP fundamentally changes the idea behind ankle by allowing the physician to enter the foot with superior control, and providing complete aeration along the entire ankle profile. Its team has filed a provisional patent for the device and initial IP research confirms that the device constitutes unique and innovative intellectual property. The product has the potential to become a disruptive force in the ankle device market.

THE MARKET

Entry Science aims to target the small site ankle market, and then expand to the entire ankle market. Currently, no approved and effective solution exists for Ankle devices of small ankle sites. Its device will create a fundamentally new segment of the ankle device market with the potential for extraordinary growth rates, as surgical procedures that are currently done invasively will be possible using foot methods. We believe the small ankle segment represents a $300 million market today, with significant growth over the next 5-10 years.

The small site ankle device market is promising due to its expected continued growth of 8% - 12% annually, and its curre

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ntly low penetration rate (percentage of the total number of ankle foot surgery s). Currently, there are approximately 5 million ankle operations in the United States. 3.9 million of these procedures could potentially involve an ankle device, only 25% of which are opened using existing ankle devices. This small percentage is due to the significant learning curve involved, the risks of inadequate deployment with improper opening, hematoma, and ankle, and overall practitioner dissatisfaction with current devices. The remainder is opened using manual cut-down. Currently, the market volume is $550 million with average revenue per device of $1,250. Analysts expect this market to grow to $1 billion by 2010.

THE TEAM

Entry Sciences is headed by John Travolta, an MBA from McMaster University with 10 years' previous experience in medical device companies, including a successful acquisition by a major medical device company. The company's R&D is headed by Danny Glover, who has substantial experience developing and implementing medical devices. The company's Chief Medical Officer, Dr. Michelle Pfeiffer, is a well-respected ankle specialist who has extensive contacts in the industry.

FINANCIAL RETURNS

Historically, most small medical device companies have been acquired by the Majors once they have demonstrated sales success. Entry Science's proven success at gaining market share may make the company a good candidate for takeover in the next few years.

The investment required is $352,000. The expected IRR over the next three years is greater than 30%. As compared to other similar investments, Entry Science offers a proven product with growing market share, high margins, and an opportunity for an acquisition event.

Executive Summary

The Product

The Market

The Team

Financial Returns

The Team

Advisors & Mentors ankle Devices - Background

CLAMP ankle Device

Market Analysis

Small site ankle market

Competition

Competitive Advantage

Intellectual Property Landscape

Operating Plan

Financial Analysis

Revenue Model

Pricing & Reimbursement

Revenue & Cost Projections

Financing Requirements

Sales & Marketing

SWOT analysis

Risk Analysis

Prototyping

Intellectual… READ MORE

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Quoted Instructions for "Science Business Plan Entry Science Is Funding" Assignment:

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WE WILL PAY MORE FOR THIS ONE!

SOURCES HAVE BEEN UPLOADED.

The term paper is to be a business plan for a hypothetical new venture. At the student's option, a real business may be described. However, proprietary information must not be submitted. Neither the instructional staff nor the University will agree to a non-disclosure or non-compete agreement, nor will the instructional staff or the University be liable for any disclosure, either intentional or unintentional.

The term paper is to be the original work of student him/herself and must not contain extensive "copy-and-paste" from other publications, including business planning software or online copies of business plans. References must be given appropriate, complete citations consistent with good scholarship and advanced standing in the program. Failure to cite quoted material will result in grade of F without the option of rework.

The plan should be 15 to 20 pages in length, single spaced, using a 12-point font. Margins must be 1-inch on all sides. Pages beyond page 20 will neither be read nor graded, however, useful appendices may be included there. In the case of appendices, the most salient information must be summarized in the plan's body.

The plan must have a cover page, table of contents, and a two-page Executive Summary. The cover, table of contents and Executive Summary are not counted toward maximum length.

The business plan must present all of the essential elements needed for a potential investor to make a decision. These elements include a succinct statement of the business opportunity, target market and penetration, competition, management team qualifications, marketing, operations, break even and payback, as well as projected return on investment using discounted cash flow analysis.

A pro forma cash budget should be used to develop financial projects. This cash budget should incorporate the elements of the sales forecast and the expected expenses. The detailed cash budget should be the first appendix. Its contents should be summarized in the body of the business plan.

Please download the Business Plan Scoring Rubric to help organize your paper. The rubric illustrates exactly how your score will be derived. A Sample Cash Budget also is provided for downloading. Finally, a simplified cash budget exhibit in Excel may be downloaded for study.Simplified Cash Budget 5/14/2007

This spreadsheet illustrates a simplified cash budget exhibit. It is offer AS IS and is not warranted for usability, accuracy, or anthing else.

The author is not liable for any errors or omissions. The exhibit is intended only to illustrate how someone MIGHT create a 36-month sale

budget and cash flow forecast, if said someone were interested in doing so.

Startup Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Sales Forecast

Units sold 0 8,000 8,000 10,000 10,000 10,000 10,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 14,000 14,000 16,000 16,000 16,000 20,000 20,000 20,000 25,000 25,000 25,000 30,000 30,000 30,000 35,000 35,000 35,000 35,000 40,000 40,000 40,000 40,000 40,000

Average price per unit 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00

Total sales revenue = Units sold * Average price per unit 0 88,000 88,000 110,000 110,000 110,000 110,000 132,000 132,000 132,000 132,000 132,000 132,000 144,000 168,000 168,000 192,000 192,000 192,000 240,000 240,000 240,000 300,000 300,000 300,000 390,000 390,000 390,000 455,000 455,000 455,000 455,000 520,000 520,000 520,000 520,000 520,000

Total Cash Inflows (assumes no credit sales; no doubtful accts) 0 88,000 88,000 110,000 110,000 110,000 110,000 132,000 132,000 132,000 132,000 132,000 132,000 144,000 168,000 168,000 192,000 192,000 192,000 240,000 240,000 240,000 300,000 300,000 300,000 390,000 390,000 390,000 455,000 455,000 455,000 455,000 520,000 520,000 520,000 520,000 520,000

Cash Payments (Outflows)

Supplies and materials used in operations (production) 30% 0 26,400 26,400 33,000 33,000 33,000 33,000 39,600 39,600 39,600 39,600 39,600 39,600 43,200 50,400 50,400 57,600 57,600 57,600 72,000 72,000 72,000 90,000 90,000 90,000 117,000 117,000 117,000 136,500 136,500 136,500 136,500 156,000 156,000 156,000 156,000 156,000

Payroll (operations staff and management) 40% 0 35,200 35,200 44,000 44,000 44,000 44,000 52,800 52,800 52,800 52,800 52,800 52,800 57,600 67,200 67,200 76,800 76,800 76,800 96,000 96,000 96,000 120,000 120,000 120,000 156,000 156,000 156,000 182,000 182,000 182,000 182,000 208,000 208,000 208,000 208,000 208,000

Other Factory Expenses (including utilities and maintenance) 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500

Advertising & Promotion 1,000 500 500 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300

Selling Expenses (including sales staff; travel & entertainment) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Administrative expense (including benefits & salary of owner) 0 0 0 0 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000

New plant and equipment; annual R&R 95,000 0 0 0 0 0 0 0 0 0 0 0 15,000 0 0 0 0 0 0 0 0 0 0 0 15,000 0 0 0 0 0 0 0 0 0 0 0 0

Other payments (e.g., taxes, loan payments, and interest) 15% 0 9,240 9,240 11,550 11,550 11,550 11,550 13,860 13,860 13,860 13,860 13,860 13,860 15,120 17,640 17,640 20,160 20,160 20,160 25,200 25,200 25,200 31,500 31,500 31,500 40,950 40,950 40,950 47,775 47,775 47,775 47,775 54,600 54,600 54,600 54,600 54,600

Total Cash Outflows 101,500 76,840 76,840 94,350 100,350 100,350 100,350 118,060 118,060 118,060 118,060 118,060 133,060 128,720 148,040 148,040 167,360 167,360 167,360 206,000 206,000 206,000 254,300 254,300 269,300 327,750 327,750 327,750 380,075 380,075 380,075 380,075 432,400 432,400 432,400 432,400 432,400

Cash Profit (Loss) (101,500) 11,160 11,160 15,650 9,650 9,650 9,650 13,940 13,940 13,940 13,940 13,940 (1,060) 15,280 19,960 19,960 24,640 24,640 24,640 34,000 34,000 34,000 45,700 45,700 30,700 62,250 62,250 62,250 74,925 74,925 74,925 74,925 87,600 87,600 87,600 87,600 87,600

Discounted Cash Flow Analysis

Hurdle Rate 20%

*****

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