Secon 2007 Team 1
Business Plan
1.0. Executive Summary
PainTech will design, manufacture, and market autonomous paintball turrets that can be used in
competitive paintball play. Turrets will be initially marketed toward and sold to commercial
paintball parks. Later, we will expand our market to include turrets designed for at-home
consumer use.
1.1. Mission Objective
The goal of PainTech is to enhance the game play within the paintball community. PainTech will
introduce robotic paintball turrets with vision tracking and electronic targets which will greatly
expand the current game play as well as enable people to play that otherwise might not have
enough people to create a game. These devices will add exciting new elements for both practice
and competition. PainTech’s products will allow games to be played in ways not considered
before.
1.2. Keys to Success
Attend trade shows and demonstrate the use of the product and how it integrates into the
sport of paintball. This allows field owners to see the product in action and how it
enhances the game.
Maintain relationship with large paintball course owners. This allows the product to be
modified based on owner feedback and maintains a level of customer satisfaction
necessary to build the brand.
Create demand by encouraging tournaments including the turrets. A large portion of the
paintball market is organized competitions. The inclusion of the product in these
competitions will ensure name recognition and help the product spread more quickly as
course owners strive to keep up with the latest equipment.
1.3. Target Market
PainTech plans to initially target commercial paintball parks. The paintball turret system will
give the park’s players a unique and fun experience they might not find elsewhere. Once
PainTech’s system is established in commercial paintball parks, portable models which can be
used by recreational players outside of a commercial paintball park will be introduced. These
will appeal to the players who find paintball parks to be too crowded and expensive, or players
who enjoy playing in the woods of their own land. The portable models will also be useful for
training at home, outside of a park.
Ultimately, PainTech will become a common accessory in all categories of the sport. Scenario
and even tournament play could be enhanced by the use of PainTech’s products. PainTech will
be something no avid player will want to be without.
Secon 2007 Team 1
Business Plan
In addition to establishing a market in the paintball industry, the technology used in PainTech’s
products can be adapted for military training. PainTech plans to work with the military on
providing combat training devices. These devices can help soldiers be more covert on the
battlefield while working on their shooting accuracy.
1.4. Competitive Advantage
PainTech's turret firing system will be the first generation automated shooting mechanism in the
sport of paintball. There is no product on the market that automatically fires paintballs at targets.
The turret will revolutionize the sport of paintball by introducing a new element into playing
field. Currently, all paintball games only involve human players. An automated shooting
mechanism will modernize the sport of paintball by having non-human intelligence. Modern
warfare includes many automated devices including automated firing systems. This trend should
be brought to paintball to enhance the game.
The automated devices industry has shown strong growth for decades. PainTech's turret will be
the first of its kind in the paintball field. Paintball park owners who have PainTech's turret will
generate more revenue due to the popularity of the new style of paintball play.
1.5. Basic Strategies
Before the release of the first set of commercial park turrets, PainTech will demonstrate its
product at various trade shows around the country. Also, PainTech will hold private
demonstrations for the top paintball magazine editors to help generate interest prior to the release.
Initially, PainTech plans on manufacturing a small, focused set of products aimed at commercial
paintball parks. We will travel to different parks and give on-the-road demonstrations so owners
can see first hand how well the system works. Word of mouth from the park’s patrons will help
to expand interest in our product to other parks.
Once PainTech is established in the paintball parks, we will create a website which will facilitate
sales of our at home models. We will begin a marketing campaign that appeals to the average
paintball player at home. This will include advertisements on online websites and magazines.
Specifically, Paintball Magazine and Paintball Sports Magazine will be targeted. Paintball
distributors such as Xtreme Paintball® will be utilized for an online marketing approach on their
company website.
PainTech’s ideal exit strategy is to grow the company to a point where it could be sold into a
larger corporation. This will allow PainTech to return its initial investment, while making a
profit.
Secon 2007 Team 1
Business Plan
2.0. Company Summary
PaintTech is a Limited Liability Corporation based out of Atlanta Georgia. It was founded to
market paintball accessories, which add an exciting new dynamic to the world of paintball.
Ben Payment, David Warren, Michael Peach, and Ryan Irwin are the founding members of
PainTech. By incorporating their education in the robotics and embedded systems, its founders
sought to enhance the paintball community by adding automated turrets into game play.
PainTech will initially only consist of 4 employees, the founding members. Ben Payment will act
as President, while David Warren is in charge of research and development and Michael Peach
and Ryan Irwin head up marketing and sales.
2.1. Company Location
PainTech is located in Cartersville, Georgia, which is just outside of Atlanta. According to
Paintball Nation ( http://www.pbnation.com/ ) there are over 30 paintball fields or shops within
the greater Atlanta area. This location proves easy access to a large paintball community. In
addition, Atlanta has abundant manufacturing facilities and is located near large shipping hubs.
2.2. Company Facilities
PainTech is located on a five acre parcel of land with both wooded and cleared areas. The varied
foliage and terrain of the lot will allow for a great testing ground for the turrets developed at
PainTech. Included on the lot is a 2500 sq ft barn which is where the office is located. In
addition, the barn also proves plenty of area to manufacture the turrets and store supplies.
2.3. Company Strategy
PainTech will use its extensive relationship with paintball field owners to market and sell its
products and remain a major force in the paintball industry. The uniqueness of the PainTech
product will give it an edge in the lucrative paintball market. PainTech has a competitive
advantage since there are no competitors on the market currently; however, PainTech will have to
work hard to establish the market for its product line. PainTech will focus on the novelty of its
products and the exciting new atmosphere it will bring to the game of paintball.
The first year of operation will be used to develop and demo a prototype that can be used to
entice investors to the company and generate excitement at paintball fields. Feedback from these
demos will help improve the final product. To reach a more broad audience, the company will
promote the upcoming product on its website, www.paintech-paintball.com. After sufficient
testing is complete on the prototype, the company will begin the general sale of the robot to
paintball fields.
All turrets will be assembled and tested at PainTech facilities. As demand for the turrets increase,
the company will hire more employees to assemble and test the products. After enough growth,
the company hopes to be absorbed into a larger paintball equipment manufacturer where its
products will gain more exposure.
Secon 2007 Team 1
Business Plan
2.4. Start-UP Cost
The start up costs of PainTech will be funded by investors and borrowed money. The three
primary investors in the company will be Jameson Brown, David Warren, and Ben Payment. The
start up money will cover initial prototype development, rent, and equipment. Specific start-up
costs are detailed in Table I.
Table 2.4.a. PainTech Startup Costs
Startup Expenses Cost Details
Legal Costs 500.00 LLC Startup and lawyer fees
Prototype Development 20,000.00 materials, electrical, PCB fab
Initial Advertising 3,000.00 500 x 6 magazine ads
Insurance 500.00 building and equipment insurance
12 x 900 dollars/month (inc. estimated
Rent (1 year) 10,800.00 utilities)
3 x 400 oscilloscope rental, 2 x 1200
Expensed Equipment 4,000.00 PCs, 400 tools
Office Supplies 1,000.00 printer, fax machine, paper, pens, etc.
Total Startup Expenses 39,800.00
Startup Assets needed
Cash Balance on Starting
date 30,000.00
Startup Inventory 0.00
Other Current Assets 9,000.00
Total Current Assets 39,000.00
Total Startup Requirements 78,800.00
Funding
Investment
Investor1 - Jameson Brown 20,000.00
Investor2 - David Warren 5,000.00
Investor3 - Ben Payment 10,000.00
Other 17,000.00 generous relatives
Total Investment 52,000.00 Investors do not cover total costs
Current Liabilities
Accounts Payable 0.00
Current Borrowing 26,800.00 borrow money to make up for this
Other Current Liabilities 0.00
Total Current Liabilities 26,800.00
Long-term Liabilities 0.00
Total Liabilities 26,800.00
Left To Finance 0.00
Secon 2007 Team 1
Business Plan
Loss at Start-up 39,800.00
Total Capital 12,200.00 borrowing has reduced my capital
Total Capital and Liabilities 39,000.00
Checkline 0.00 Should always be zero
Secon 2007 Team 1
Business Plan
3.0. Product Description
PainTech’s initial product will be an autonomous paintball turret. The turret, which can be
mounted anywhere, will have the ability to track players on the playing field and shoot them with
paintballs. This feature will be achieved by using an advanced vision system which will track the
players as they move. The turret will have varying difficulty levels that can be set, which will
adjust how accurately the camera tracks, and how often the turret will shoot.
The turret is designed to be used in team play, where each team would have one or more turrets.
There will be a target on each turret, which can be optionally activated. If an opposing team
member shoots the target with a paintball, the turret is deactivated and will no longer shoot.
3.1. Sourcing
Many of our supplies will be manufactured elsewhere and then modified in PainTech’s
development facility. All paintball supplies will be from Xtreme PaintBall®. The main
component of the image tracking system will come from Seattle Robotics. All electrical
components will be from the Digi-Key Corporation. PainTech will be supplied with printed
circuit boards from PCB FAB EXRESS. All tri-pods will be supplied from Photo Etc. Online.
3.2. Future Products
PainTech plans to introduce a home version of the original paintball turret. This version will be
smaller and more portable which will allow paintball enthusiasts who play around their own
home to take the turrets with them. Along with the home version, the company will supply
various mounts and stands for the portable turret.
The turret’s design will be expanded to implement a wireless remote control and camera system.
This will allow a player to operate the turret manually off of the playing field. This will allow the
turret to be either autonomous, or manually operated, depending on the desired game play.
In addition to paintball equipment, PainTech plans to work with the military to produce training
devices for field combat. The vision and targeting technology will be a perfect training tool for
soldiers to simulate real-world battle experiences.
Secon 2007 Team 1
Business Plan
4.0. Market Analysis
Initially, PainTech plans on manufacturing a small, focused set of products aimed at commercial
paintball parks. Once PainTech is established in the paintball parks, we intend to sell models for
the use of the average paintball consumer. According to (http://paintball.about.com) there are
approximately one thousand official fields across the country, and almost $400 million dollars is
spent by approximately 10 million paintball consumers each year.
4.1. Market Segmentation
This generates an industrial market segment and a consumer market segment. The target group
for the industrial market segment would consist of paintball park owners. The target market for
our consumer segment would include the middle-aged male paintball enthusiast.
The first two years we plan to only market to paintball park owners. We are targeting all
paintball park owners. At first, we are expecting to sell to thirty paintball fields in the greater
Atlanta, GA area. The type of paintball park owner we expect to buy our products are those who
keep their parks well maintained and feature the best equipment.
After the end of the second year, we plan to market towards the paintball consumer. We are
targeting all paintball enthusiasts in the greater Atlanta, GA area. The most likely customers of
our product line will be the working middle-aged male who is probably a subscriber to popular
paintball magazines.
4.2. Competitive Analysis
PainTech's turret firing system will be the first generation automated shooting mechanism in the
sport of paintball. There is no product on the market that automatically fires paintballs at targets.
The turret will revolutionize the sport of paintball by introducing a new element into playing field
that shoots with the aid of non-human intelligence.
The automated devices industry has shown strong growth for decades. PainTech's turret
will be the first of its kind in the paintball field. Paintball park owners who have
PainTech's turret will generate more revenue due to the popularity of the new style of
paintball play.
Secon 2007 Team 1
Business Plan
5.0. Strategy and Implementation Summary
PainTech intends to establish itself in the paintball market as the premier source
automated paintball turrets. PainTech will create highly robust and reliable products
which will greatly enhance the current paintball game play. Initially PainTech will
branch out to local paintball field owners in the greater Atlanta, GA area by having onsite
demonstrations. Through these demonstrations, PainTech will convince these owners
that its products are a must-have for paintball fanatics.
5.1. Implementation Strategy
Once PainTech has established itself within the greater Atlanta, GA area it will begin to
expand its market to all of Georgia. A sales representative will travel to paintball
tournaments where local field owners and paintball enthusiasts will be given free
demonstrations of PainTech’s products and how they enhance paintball game play.
Onsite demonstrates will enable PainTech’s sales representatives to provide a full
demonstration of the products capabilities and functionality. PainTech’s sales
representative will be responsible for any customer support and sales satisfaction issues.
PainTech will provide a quality assurance guarantee with its products. Figure 5.1.a.
shows the strategy pyramid for PainTech.
Figure 5.1.a. – PainTech Strategy Pyramid
Secon 2007 Team 1
Business Plan
5.2. Milestones
Year 1 Develop prototype
Begin demonstrating prototype at select fields around Atlanta
Year 2 Begin distributing finish products and expand sale and market efforts
throughout Georgia
Begin development of additional accessories
Year 3 Feature products in professional competitions
Begin looking at adjacent states for market potential
Increase market by 15%
Year 4 Expand distribution into adjacent states
Begin distribution of accessories
Increase market by 15%
Year 5 Increase market by 15%
Secon 2007 Team 1
Business Plan
6.0. Management
6.1. Organizational Structure
The management of PainTech comprises of Ben Payment, Ryan Irwin, Michael Peach,
and David Warren. Ben Payment will assume the role of CEO and be responsible for
hiring and Human Resources management. Ryan Irwin will be in charge of Finance
which includes both sales and company accounting. Michael Peach will be the Vice
President of Marketing with is responsible for the branding of our products and market
research for future product markets or avenues for better capturing existing markets.
Figure 6.1.a shows the organizational structure.
Ben Payment
CEO / Human Resources
Ryan Irwin Michael Peach David Warren
VP Finance VP Marketing VP R&D
Accounting Sales Brand Market Product Manufacturing
Literature Research Development
Figure 6.1.a. – PainTech Organizational Structure
6.2. Management Description
CEO: Ben Payment. Mr. Payment will handle the day-to-day operation of the company
and will be responsible for all hiring decisions. Due to the small nature of the company,
he will assist in R&D when necessary.
VP, Finance: Ryan Irwin. Mr. Irwin will manage accounting, including asset
procurement and management. Also, he will be responsible for customer sales and
relations.
VP, Marketing: Michael Peach. Mr. Peach will develop and market product information
to customers. He will also be responsible for market research to find future markets for
PainTech products.
VP, R&D: David Warren. Mr. Warren will develop, prototype, and test PainTech's
products. This includes oversight of the manufacturing and test area. Mr. Warren will
also research new products to expand and develop PainTech's product portfolio.
Secon 2007 Team 1
Business Plan
6.3. Salary Distribution
PainTech will strive to maintain a "lean-and-mean" approach to personnel. The only
other employee besides the CEO, VP Finance, VP Marketing, and VP R&D will be the
administrative assistant, who will handle the daily scheduling tasks and data organization.
Table 6.3.a. describes the salary distribution.
Table 6.3.a. - Salary Distribution
Oct Nov Dec 2007 2008 2009
CEO $3,333.00 $3,333.00 $3,333.00 $10,000.00 $45,000.00 $45,000.00
VP Finance $3,333.00 $3,333.00 $3,333.00 $10,000.00 $45,000.00 $45,000.00
VP Marketing $3,333.00 $3,333.00 $3,333.00 $10,000.00 $45,000.00 $45,000.00
VP R&D $3,333.00 $3,333.00 $3,333.00 $10,000.00 $45,000.00 $45,000.00
Administrative $2,083.00 $2,083.00 $2,083.00 $6,250.00 $25,000.00 $25,000.00
Assistant
Subtotal $15,415.00 $15,415.00 $15,415.00 $46,250.00 $205,000.00 $205,000.00
Secon 2007 Team 1
Business Plan
7.0. Financial Plan
7.1. Important assumptions
In order to meet PainTech’s projected sales several assumptions are made:
PainTech will expand its market by 15% every year
PainTech will meet its target of 90 turret sales after two years
PainTech can meet production demand without outside manufacturing
7.2. Projected Sales
PainTech has a target sales goal of 90 units at the end of two years. Afterwards PainTech
will grow its sales at a rate of 15% each year over the next 5 years. Figure 7.2.a. shows
the project sales over the next 5 years.
140
120
100
80
60
40
20
0
year 1 year 2 year 3 year 4 year 5
Figure 7.2.a. – Projected Sales for 5 years
7.3. Project Expenses
Over the first five years much of the PainTech expenses will come from research and
development costs associated with salary employees. Figure 7.3.a. show the expenses
associated with PainTech startup. With the 15% growth over the first 5 years the
manufacturing cost can be seen to correspondingly increase.
Secon 2007 Team 1
Business Plan
$300,000
$250,000
Expenseses
$200,000
Sales
$150,000 Salary
Manufacturing
$100,000
$50,000
$0
year 1 year 2 year 3 year 4 year 5
Figure 7.3.a. – Projected Expenses
7.4. Salary Breakdown
Part of the PainTech objective is to minimize the number of necessary employees. The
first 5 years PainTech will operate with its foundering 4 members and an administrative
asstant. Table 7.4.a. shows the salary breakdown for this period.
Table 7.4.a. – Salary Breakdown
year 1 year 2 year 3 year 4 year 5
CEO $40,000 $45,000 $45,000 $45,000 $45,000
VP Finance $40,000 $45,000 $45,000 $45,000 $45,000
VP Marketing $40,000 $45,000 $45,000 $45,000 $45,000
VP R&D $40,000 $45,000 $45,000 $45,000 $45,000
Administrative
Assistance $25,000 $25,000 $25,000 $25,000 $25,000
7.5. Sales vs Cost
During the first year, PainTech plans to work on development and advertising of its
product. We plan on making no sales during the first year, which will leave the company
with a negative net profit. The second year, the company will sell 3 units to 30 customers
at $3500 a piece. This will increase by 15% in year 3. Sales in year two will be greater
than the operating expenses and the company will turn a net profit. Figure 7.5.a. shows
the sales vs. cost for the first three years of operation.
Secon 2007 Team 1
Business Plan
Figure 7.5.a. – Sales vs. Cost
7.6. Profit and Loss
Table 7.6.a. shows the profit and loss for PainTech for the first three years.
Table 7.6.a. - Profit and Loss
Year1 Year2 Year3
Sales
$0.00 $315,000.00 $362,250.00
Materials (cost of sales) $15,000.00 $15,000.00 $30,000.00
Wages (cost of sales) $0.00 $0.00 $0.00
Subtotal (Cost of sales) $15,000.00 $15,000.00 $30,000.00
Gross Profit -$15,000.00 $300,000.00 $332,250.00
Gross Profit (%) 0.00% 95.24% 91.72%
Secon 2007 Team 1
Business Plan
Table 7.6.b. shows the operating expenses for the first three years of operation.
Table 7.6.b. - Operating Expenses
Recurring Salaries
$185,000.00 $205,000.00 $205,000.00
Recurring Wages $0.00 $0.00 $0.00
Rent $10,800.00 $10,800.00 $10,800.00
Utilities(Elec/Gas/Phone) $1,300.00 $1,300.00 $1,300.00
Insurance $0.00 $0.00 $0.00
Bldg Maintenance $0.00 $0.00 $0.00
Travel $5,000.00 $10,000.00 $10,000.00
Advertising $3,000.00 $5,000.00 $5,000.00
Bank Finance Charges $0.00 $0.00 $0.00
Capital Expenditure $9,000.00 $2,000.00 $2,000.00
Loan Payments $0.00 $0.00 $0.00
Misc $0.00 $0.00 $0.00
Depreciation $1,800.00 $1,800.00 $1,800.00
Total Operating Expenses $215,900.00 $235,900.00 $235,900.00
Operating Profit -$230,900.00 $64,100.00 $96,350.00
Misc Income $0.00 $0.00 $0.00
Net Profit (before tax) -$230,900.00 $64,100.00 $96,350.00
Taxes -$69,270.00 $19,230.00 $28,905.00
Net Profit (after tax) -$161,630.00 $44,870.00 $67,445.00
Net Profit/Sales 0.00% 14.24% 18.62%
Secon 2007 Team 1
Business Plan
7.7. Projected Cash Flow
Table 7.7.a. shows our projected cash flow for the first 3 years.
Table 7.7.a. - Projected Cash Flow
Startup (cash in
bank at startup) Year1 Year2 Year3
INCOME (cash in)
Sales $0.00 $315,000.00 $362,250.00
Capital Received/Loans
Other Income (investments)
Total Inflow $0.00 $315,000.00 $362,250.00
EXPENDITURE (cash out)
Materials (cost of sales) $15,000.00 $15,000.00 $30,000.00
Recurring Salaries $185,000.00 $205,000.00 $205,000.00
Rent $10,800.00 $10,800.00 $10,800.00
Utilities(Elec/Gas/Phone) $1,300.00 $1,300.00 $1,300.00
Travel $5,000.00 $10,000.00 $10,000.00
Advertising $3,000.00 $5,000.00 $5,000.00
Capital Expenditure $9,000.00 $2,000.00 $2,000.00
Taxes -$69,270.00 $19,230.00 $28,905.00
Total Outgo $159,830.00 $268,330.00 $293,005.00
Income less Expenditure -$159,830.00 $46,670.00 $69,245.00
Cash Balance $30,000.00 -$129,830.00 -$83,160.00 -$13,915.00
7.8. Balance Sheet
Table 7.8.a. shows the projected balance sheet for PainTech for the first three years.
Table 7.8.a. - Balance Sheet
Startup Year1 Year2 Year3
Current Assets
Cash Balance 30,000.00 -129,830.00 315,000.00 362,250.00
Merchandise Inventory 0.00 0.00 0.00 0.00
Subtotal 30,000.00 -129,830.00 315,000.00 362,250.00
Capital Assets (can be
depreciated) 9,000.00 9,000.00 7,200.00 5,400.00
Depreciation 1,800.00 1,800.00 1,800.00
Subtotal 9,000.00 7,200.00 5,400.00 3,600.00
Total Assets 39,000.00 -122,630.00 320,400.00 365,850.00
Liabilities
Current Liabilities 26,800.00
Long Term Liabilities 0.00
Total Liabilities 26,800.00 0.00 0.00 0.00
Secon 2007 Team 1
Business Plan
Capital, aka Net Worth
(assets-liabilities) 12,200.00 -122,630.00 320,400.00 365,850.00
Total Liabilities and
Capital 39,000.00 -122,630.00 320,400.00 365,850.00