start up business plan project report children assistants

We provide solutions for the development of children under 10 years old through by toys connected to fastest and most efficiency Management System.. Market Research Summary As you know,

HANOI UNIVERSITY OF SCIENCE AND TECHNOLOGY School of Information and Communication Technology

Start-up Business Plan

PROJECT REPORT

Children Assistants

Instructor MSc Le Tan Hung

MSc Le Duc Trung Students 2011 2017 – Ngô Xuân Quý

2011 1648 – Đỗ Trọng Huy

2011 1768 – Tạ Thanh Lương

2011 1352 – Trần Vũ Duy

2011 2157– Vũ Văn Tùng

2010 2512 – Vương Mạnh Tùng

1 Executive Summary 3

a Company Profile Summary 3

b Market Research Summary 3

c Marketing Summary 3

d Finance Summary 3

2 Product and service 4

3 Market Research 4

a Industry Profile & Outlook 4

b Local Market 4

c Key Competitors / SWOT Analysis 4

d Target Market 5

e Keys to Success 6

4 Sales & Marketing 6

a Pricing Strategy 6

b Marketing Strategy 6

c Primary Marketing Activity 6

5 Operations 7

a Location(s) 7

b Website description 7

c Website development 7

d Legal Issues 8

e Insurance Issues 8

f Human Resources 8

6 Process/Production 8

7 Risk Assessment 9

8 Financials 9

a Start-Up Costs 9

b Sales Forecast 9

c Cash flow 10

d Income Statement 10

1.Executive Summary

a Company Profile Summary

We are Children Assistants We provide solutions for the development of children under 10 years old through by toys connected to fastest and most efficiency Management System

We start up with 6 ICT students: Vương Mạnh Tùng, Vũ Văn Tùng, Trần Vũ Duy, Ngô Xuân Quý, Trần Trọng Huy, Tạ Thanh Lương, from Hanoi University

of Science and Technology (HUST)

b Market Research Summary

As you know, children are always the future generation of the original and national growth So, undeniably, they has become the most cared people in the society In addition, the first times of human life is the most incredible period to broaden knowledge and develop personalities By bringing better living

standard, we directly make a decision about beautiful future for our children However, in Vietnam as well as eastern countries, in term of tradition, the age

of under 10 years need to focus more on physical growth than that of mental and characteristics

c Marketing Summary

Nowadays, Vietnamese families need products having two functions as

entertainment and education It would be a toy which will get data through by children’s activities and then summarize statistics, giving their parents some advices about suitable solutions to motivate better growth in both physical and mental

d Finance Summary

The main revenue come from selling intelligent products like children toys with the range of price between 50 -150$

First Year projections are targeted for 20,000 - 25,000 $

By Year two, sales are projected to double to 50,000 - 65,000 $ with expenses just under $13,200

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2.Product and service

Children Assistants provide three services and products including:

1 “Monterssori” teaching devices: It helps children practice related to lessons which directly develop children’s sensors and characteristics

2 Coures: provide parents understand and know How to teach children

3 Reports: After finishing courses, parents use them to judge children

3.Market Research

a Industry Profile & Outlook

Nowadays, toys market moves to a strong transformation In the past, the majority of Vietnamese products were imported from China, approximately 90%, and now this figure decrease significantly However, it

is hard to compare the satisfaction of market on Chinese products than others because of lacking of diversity, creativity and even outdated design

In the addition, the limitation of insurance leads to non-synchronized

production with the prices being always higher than 15% that in Chinese with same design.

It is fact that all Chinese products are made from plastic and rubber, affecting directly children health, which leads to psychological concerns This has become an great opportunity for local businesses for creating new security toys such as wood.

And, after a long time analyzing local market, we has developed a high applicability toys made from wood, safe material

b Local Market

The initial focus will be in providing courses about using products and lessons related to develop children in both physical and mental

c Key Competitors / SWOT Analysis

 Other companies

o Big trademark

o Stable input and output market

Weaknesses –

o Limitation education application in toys

Opportunities –

o Develop a new product to adapt market

Threats –

o Lacking of information from customer take time and price to satisfy with market demand

 Children Assistants

Strengths –

o Friendly products with variety of design with colourful and safety

o Non-poisonous – Made by Wood

o Non-profit sophisticated software to management

o Mental development

o Provide new teaching methods for parents

o Interaction between the production and the customer

Weaknesses –

o Can be perceived as too niche

o A new product with very little history

o Take time to create market belief

Opportunities –

o Providing new teaching method in schools

o E-commerce is still new market

Threats –

o Outdated statistics

o Risks from online business

d Target Market

Young parents have children under 10 years old in modern urban

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e Keys to Success

 To develop an extensive online lessons for parents new teaching methods

 Always listen and change to adapt market demand

 Idea is key success

4.Sales & Marketing

a Pricing Strategy

The main revenue come from selling intelligent products like children toys with the range of price between 50 -150$ or services allow customers to trial using products before making decision to buy in 1 month

Besides special service only provide for children schools with encourage price by 70% original one

First Year projections are targeted for 20,000 - 25,000 $

By Year two, sales are projected to double to 50,000 - 65,000 $ with expenses just under $13,200

b Marketing Strategy

Children Assistants is committed to building a new teaching methods, advance, friendly and efficiency through by diversified toys

Our Slogan “Always Be Children’s Friend”

c Primary Marketing Activity

Starting to attendant into Vietnamese Market Steps include:

1 Using the strength of social network such as Facebook, Zalo, some family forum like Webtretho advertises products

2 Develop a unique website in order to introduce products as well as provide necessary tutorial lesson through by visual aids like videos and images

3 Make a friendly relationship with kid gardens or supermarkets by trial uses

4 Create conference about children development applying high-technology toy

5 Build store chain in local modern urban before developing the business net to rural

5.Operations

a Location(s)

 Focus on big economy center like Ha Noi, Tp Ho Chi Minh, Da Nang

 After 2-3 years, develop in others

b Website description

Website registers domainname It is online commercial as well as provide information about teaching courses for parents

Website will focus on three main functions:

1 Online store with showing all products with tutorial They will be divided into different purpose about language, age and gender.

2 Teaching courses provide free for customers They are also divided into different demand about age from 0 to 6 years old

The content about

i Tutorial by images + video

ii Introduction about education method“monterssori”

3 Summary about the development period through by getting statistic from our products sold for customers

c Website development

Website will be developed by high level engineers and have great bandwidth – withstand approximately thousands connection

 Informative: Every information about products will be shown when clicking each product such as name, name company, material, color, price, suitable age and

especially appear in 3-D image.

 Security: All trade secure under best online security In addition, we accept variety of payment solution including cash and card We commit shortest time to deliver products in 1-2 days before paying and re-pay after judging 3 days All products have 3-6 months insurance

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d Legal Issues

Children Assistants anticipates the following legal issues:

 Business licenses

 Intellectual property (i.e patents, trademarks and copyright)

 Contract agreements (partnerships, independent contractors etc.) Children Assistants is automatically protected by copyright but no patent is being pursued as the layout and simplicity in the process is what makes the software so effective

e Insurance Issues

 Every trade has pay-bill

 All products have been written original and insurance

f Human Resources

 Children Assistants will have 5 - 10 full time staff

 Children Assistants will have 0 part time staff

 Children Assistants subcontracts work to Hoa Phat for product development and Protecting Customer Academy to test the product as well as Children Development Center to analyze statistics All have extensive experience in their respective fields They will be called upon

on as needed basis in the future but not as employees but as subcontractors This will help keep costs down in the initial stages

6.Process/Production

The intelligent toys not only provide high-design product for market but also bring new education solution for children We divide into four main group:

 Language: Focus on thinking language such as the alphabet and

number They will be suitable with 2-5 years old children.

 Sensory: Focus on developing abilities related 5 senses of human They will be suitable with under 3 years old children.

 Math: Focus on thinking logic and predict as well as learn some simple mathematics as add, sub, multiply and divide They will be suitable with over 3 years old children.

 Experience: Focus on broadening knowledge about natural thing like animal and plant They will be suitable over 1 year old children.

7.Risk Assessment

 Not enough initial cost to develop products

 Sensitive market about new products

 Risks from online commercial

 Mistakes in production

8.Financials

a Start-Up Costs

The example business plans do not include start-up costs, cash flow or

income statement example content

b Sales Forecast

Key Assumptions for Children Assistants

 The product of each price is from $5 to 50$

 Discount 5% for orders > 100 $ , free SIP in whole nation ;

 First Year projections are targeted for 20,000 - 25,000 $

 By Year two, sales are projected to double to 50,000 - 65,000 $ with expenses just under $13,200

Year One Sales Forecast (Including Assumptions)

Month 1 – 3500$

- Register website host ,domain , design website to introduce about company and productions : 1000$

- Produce sample toys to evaluate quality and mode of products : 2000$

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- Advertising campaign : 500$

Month 2 - 6000 $

- Start producing more woody toys , base on marketing trend :

4000 $

- Hire employee : 2000$

- Website maintain : 100$

Month 3 - $10000

- Series productions are produced

- Sale to market various toys

- Support products for garden children , supermarket

Year Two Sales Forecast

Base on finance situation and profit from One year , company will have reasonable policies

c Cash flow

d Income Statement