ENTREPENEURSHIP INNOVATION PLAN

AudioClips & AudioClips+

OPPORTUNITY

• First cordless, unconnected, bluetooth in-ear headphones
• Demand for easily accessible/usable headphones
• Growing trends in fitness & a growing bluetooth enabled market
• Demand for a "free" way to listen to music when active
• Demand for a reasonably priced, unique, and quality pair of headphones

TARGET MARKET

• Sports and outdoor enthusiasts
• Ages 16 - 40
• Music enthusiasts/Audio player owners
• Average income of appx. $65,000+

OUR BRAND GOALS

• Build awareness
• Ignite demand
• Differentiate from market
• Create market share & establishment

PRICING GOALS & STRATEGIES

• Market-Oriented Pricing
• Competitors target upper class with prices of $200+
• We aim to offer the same features at a price of $60
• Lower price boosts potential reach considerably
• Large margins of profit due to low production costs

RATIONALE - TRENDS

• More than 10 Billion bluetooth enabled devices & growing.
• Appx. 29 million Americans have bluetooth capable phones & exercise.
• 90% of all mobile phones have bluetooth capabilities.
• 101 million music players have been sold since 2007.
• Appx. 20% of America's pop. exercises regularly - appx. 63 million.

DIFFERENTIATION

• Currently no cordless/un-connected bluetooth headphones.
• Currently no headphone & fitness watch combination.
• Currently only one fitness watch that has music holding capabilities (pricey).
• The ease of use and accessibility makes it unique.
• Reasonably priced for the quality provided.

POTENTIAL

• Potential reach is appx. 28 million people in U.S. alone
• Of that, 0.0025% = 70,000 units being produced in year 1
• Future brings increases in: Compatibility, & Tech capabilities
• Future decreases in prices of the technological inputs
• Massive growth potential both monetarily & through product expansion

EVEN MORE POTENTIAL

• Earning potential:
• Year 1 - appx. $5,075,000 profit
• Year 2 (+2.5%) - $5,201,875 profit
• Year 3 (+3.5%) - $5,252,625 profit
• Production costs fall & fixed costs are minimized in LR

FINANCING - WHAT WE NEED:

• For Year 1:
• Fixed Costs: $150,000
• Variable Costs: $20,000 + $2,275,000 for 70,000 units
• Total amount required: $2,445,000

OUR THREE YEAR PLAN

• Year 1: Focus on awareness, establishment, & demand
• Year 2: Grow by 2.5%, lower costs of production/inputs
• Year 3: Grow by another 1% to total of 3.5%

CAPITAL AND REPAYMENT PLAN:

• Total value: $48 Million
• At 40% equity = $19 million

CONCLUSION

• Proposed and defined our product
• Laid out our goals
• Analyzed the market and competition
• Showed the potential
• Specific financing and 3-Year Plan