The keys to success are by mlw20723

VIEWS: 8 PAGES: 6

									1.1.       Mission/Objectives

The primary objective of ScheduleMedTM is to help independent senior citizens eliminate the
confusion and mistakes that can be made in taking multiple medications. ScheduleMed aims to
be a major player in the field of home health care services for the elderly. ScheduleMed gives
senior citizens and their caretaker the peace of mind that their medication schedule is followed
and that mistakes that can lead to serious consequences are avoided. ScheduleMed aims to offer
products that vary in features and value so that customers of differing requirements and budgets
will be able to find a product that matches their needs. ScheduleMed aims to expand beyond the
pill dispensing field and into other elderly care products once growth is experienced.

The first product ScheduleMed will offer is the ScheduleMed PremierTM. The device provides an
easy-to-use scheduling software that allows caregivers or seniors to make a medication schedule.
Once the device is scheduled, the ScheduleMed Premier alerts and dispenses the medication to
the senior user using an easy-to-use one button scheme. The ScheduleMed Premier makes taking
multiple medications easy.

1.2.       Keys to Success

The keys to success are:

       •   ScheduleMed’s products should be aggressively marketed in publications tailored to
           senior citizens and nursing homes.

       •   ScheduleMed should attend major events pertaining to senior citizens and senior health
           care. This would include attendance at trade shows and annual meetings of organizations
           such as health care and nursing home associations.

       •   Develop an affordable, easy-to-use product that both the caregiver and senior user can
           use without confusion. The product should incorporate one button dispensing to allow
           the senior user to easily use it. The software should be simple for novice computer users
           to set up. It should also include tutorials to help beginner users.

       •   Build a durable, aesthetically pleasing product with a warranty to instill consumer
           confidence.

       •   Provide quality technical support to our customers to assist them with their problems.
           This will also provide us with feedback on improvements that can be made to our
           products.

       •   Once the company grows and has developed a solid reputation, ScheduleMed should
           diversify its product line to minimize the dependence of one product. This not only
           includes pill dispensing products of varying features and price, but also other products
           that may relate to elderly care.

1.3.       Target Market

Our target market is the population of senior citizens and their caretakers. More specifically, we
are targeting senior citizens who live independently and nursing homes. According to the 2000
US Census, there are 35 million senior citizens living in the United States. Of this group of
people, 90 percent take at least one prescription medication daily and most take between three
and four prescription medications daily. Currently, there are many companies making simple
non-automated pill dispensers. However, there are very few companies making automated pill
dispenser. Furthermore, there is little differentiation between the automated products in the
market. We feel that it is a good time for our company to enter the market with an improvement
on the products on the market.

Since we are a starting as a small company, we will start out limited in what we can do nationally.
To reach the national target market, we will advertise in publications geared towards senior
citizens and elderly care. In addition, we will utilize the Internet so that anyone in the country
can find out about our product. Our strategy for Internet awareness will be to maintain a website
that will give detailed information on our company and product line. To raise awareness of our
website, we will utilize Google’s AdWords service. In this service, when a search is performed
on “Automated Pill Dispenser”, an ad pointing to our website will appear and possibly steer
potential customers to our website. For physical demonstrations and local advertisements, we
will try to focus our efforts in the South. Specifically, we want to be able to capture the Florida
market as there are many retirees in this area. Once we have captured a significant segment of
our target market in the South and are able to generate sizable revenue, we will market our
company more aggressively in other regions in the country.

1.4     Competitive Advantage

Our competitive advantage is that the ScheduleMed Premier is less expensive and has more
features than what is typically in the current market. A medication dispensing unit similar to the
ScheduleMed Premier with scheduling software and notification costs $900 with a monthly fee of
$30. For most seniors on a fixed income, the $900 price tag plus a monitoring fee is a major
deterrent. By keeping product cost low and eliminating the monitoring fee, ScheduleMed plans
to gain a significant share of the market these other products are missing. To eliminate the
monitoring fee, we provide scheduling software for the caregiver. The caregiver can monitor and
schedule the ScheduleMed Premier using the software. We plan to have our product cost no
more than $400 retail. We will achieve this by using cheaper parts than our competitors.

1.5     Basic Strategies

The company startup will be primarily funded by the four founders of the company. This will
make up approximately 65% of the funding needed to start the company. The rest of the funds
will come from “angel investors.” ScheduleMed’s first product will be the current revision of the
pill dispenser that is created during senior design. Technical development will be limited to the
four founders in the beginning as it does not incur any additional costs to pay the founders. The
product will be aggressively marketed in senior journals and newspapers. Advertisements in
these publications are the best way to reach our target market. In addition, we will send
information about our products to nursing homes. In the initial stages, the product will be
available only by phone, mail order, or Internet order. Company growth is dependent on a
diverse product line. If the first revision of ScheduleMed is successful, we will attempt to sell
similar products with varying degrees of cost and features. Once we have established a firm
footing in the market, future products may include non-automated pill dispensers and other
products related to elder care such as emergency alert devices that will allow seniors to alert
caregivers in the case of an emergency. Initially, the company will operate out of a garage and all
manufacturing will be outsourced to a contractor that specializes in molded plastic parts.
Afterwards, the assembly of the parts will be done by the company’s employees. Once there is
evidence of growth, invesents in equipment and manpower will be increased.
2.1     Company Summary

ScheduleMed is a Limited Liability Corporation (LLC) founded in January 2007 at the
Mississippi State University Electrical and Computer Engineering Deparent. The founders are
Andrew Bracey, James Rapier, Ridzky Riyadi, and Harpreet Singh. Dr. Raymond Winton serves
as an advisor to the company. The objective of the company is to provide independent senior
citizens and nursing homes a pill scheduling software that will simplify the administration of a
multiple medication schedule. ScheduleMed intends to provide pill dispensers of varying quality
and value as part of the ScheduleMed line of products. The first ScheduleMed product is the
ScheduleMed Premier and will allow for remote monitoring of medication behavior. The
ScheduleMed Premier is the product initially designed in a Senior Design class at Mississippi
State University and is intended to be our top of the line product. More products will be added to
the product line if the ScheduleMed Premier achieves success. Other products in the
ScheduleMed line will include ScheduleMed Basic, which is an automated pill dispenser without
monitoring capabilities and support for only one user. ScheduleMed Deluxe is similar, but
includes support for two users.

2.2     Company Type, Location, and Facilities

ScheduleMed will start out as a Limited Liability Corporation (LLC). ScheduleMed will be
initially located in Jackson, Mississippi. The company’s initial headquarters resides in a
founder’s residence. The garage will be used for product development and production. This
saves on expenses by allowing the company to operate without a facilities cost. A move to a
larger location can be necessitated if and when the company experiences significant growth.

2.3     Company Strategy

The company will visit nursing homes in Alabama and Mississippi to research the target market.
In addition, attendance in events where senior citizens usually gather is a priority in order to
obtain market feedback on the demand of the product. After research, the company will be able
to determine a good price range for the pill dispenser. Further market research can also be done
by looking at pricing of similar products on the Internet. The product will be marketed to senior
citizens and nursing homes. The initial goal will be to market and sell the product in the
Southeast as the company is geographically constrained due to limited funds. Outside of the
Southeast, the product will be marketed via the company website. To get people to be aware of
our website, we will utilize Google’s AdWords service. All manufacturing will be outsourced to
a contractor that specializes in molded plastic parts. The assembly of the parts will be done by
the company’s employees. Once there is evidence of growth, invesents in equipment and
manpower will be increased.

2.4     Startup Costs

Table I shows calculations of total costs and assets.
                      Startup Expenses
                      Legal                                          1,000.00
                      Prototype Dev                                  8,000.00
                      Initial Advertising                            4,000.00
                      Insurance                                      1,500.00
                      Rent                                               0.00
                      Expensed Equipment                             5,000.00
                      Other                                          1,000.00
                      Total Startup Expenses                        20,500.00

                     Startup Assets needed
                     Cash Balance on Starting date                  35,000.00
                     Startup Inventory                              15,000.00
                     Other Current Assets                            5,000.00
                     Total Current Assets                           55,000.00

                     Total Startup Requirements                     75,500.00

                     Funding

                     Investment
                     Andrew Bracey                                  15,000.00
                     James Rapier                                   15,000.00
                     Angga Riyadi                                   15,000.00
                     Harpreet Singh                                 15,000.00
                     Friends and Family                             15,500.00
                     Total Investment                               75,500.00

                     Current Liabilities
                     Accounts Payable                                    0.00
                     Current Borrowing                                   0.00
                     Other Current Liabilities                           0.00
                     Total Current Liabilities                           0.00


                     Long-term Liabilities                               0.00
                     Total Liabilities                                   0.00

                     Left To Finance                                     0.00

                     Loss at Start-up                               20,500.00
                     Total Capital                                  55,000.00
                     Total Capital and Liabilities                  55,000.00
                     Checkline                                           0.00
                                  Table I. Total costs and assets

The initial prototype is estimated to cost $8,000. This cost will mostly consist of packaging costs
associated with a one-of-a-kind prototype. The initial advertising budget of $4,000 will focus on
regional tradeshows and internet advertising. This cash will allow us to aggressively market our
products. The cash balance at startup will be used to pay contractors for the mass production of
ScheduleMed Premier.
3.1     Product Description

ScheduleMed is a pill dispenser device that utilizes the Internet to schedule medication and
monitor the consumption of medication of senior citizens. Interactive software provides the
caregiver an easy GUI interface to schedule medication. For the senior user, a one-button
mechanism is used to dispense the medicine. The use of this product will make the
administration of a multiple medication schedule simple and without confusion. An LCD screen
will be used to display medication information as needed.

3.2     Customer Needs and Benefits

The customers of the ScheduleMed Premier pill dispenser need an easy way to take many
medications daily and provides them the security of knowing that they will be taking the right
medication at the right time. The pill dispenser protects users from overdosing and/or forgetting
to take medication. The pill dispenser also gives caregivers the peace of mind of knowing that
their loved ones will be less likely to miss essential medication. However, even if their loved
ones do miss a medication, notifications will allow the caregivers to take appropriate actions to
remedy the situation. Our pill dispenser will be both beneficial to the user and the caregiver.

3.3     Future Products

After the planned success of ScheduleMed Premier, ScheduleMed plans to expand to value
products with less functionality for economic users. Once we have established our name with the
ScheduleMed Premier, we will attempt to sell similar products with varying degrees of cost and
quality. For example, we will plan to sell an automated pill dispenser without remote monitoring.
We will also provide non-automated pill dispensers. Once we’ve established a firm footing in the
pill dispenser market, future products may include other products related to elder care such as
emergency alert devices that will allow seniors to alert caregivers in the case of an emergency.

3.4     Competitive Comparison

The ScheduleMed Premier’s major competitor is the MedTimeXL from e-pill. The Med-Time
XL is a small, portable dispenser that does not support remote monitoring. This dispenser is
priced at $249.95. Another pill dispenser available from e-pill is the MD.2. Unlike the Med-Time
XL, the MD.2 is approximately the size of a coffee maker and is not portable. However, the
MD.2 does support limited remote monitoring. The MD.2 calls the caregiver whenever
medication is not dispensed or the unit is low on medication. The MD.2 sells for $749.95, plus
$29.95 a month for monitoring service. These dispensers are only available through online
retailers.

The ScheduleMed Premier combines the affordability of the Med-Time XL with the advanced
features of the MD.2 such as medication instructions and monitoring. The ScheduleMed Premier
notifies the caregiver if the medication is not dispensed and allows the caregiver to check the
status of the ScheduleMed Premier throughout the day. Furthermore, the ScheduleMed Premier is
capable of supporting up to two users; therefore, the ScheduleMed Premier is ideal for elderly
couples, who would otherwise need to purchase two separate pill dispensers.
3.5     Product Costs

The majority of the production cost is a result of the user interface components. With other
physical components, consisting of the integrated circuits and printed circuit board, and various
other components, accounting for significant portion of the remaining production cost. The
manufacturing cost of each unit is below $250, allowing for an approximate retail price of $400.

								
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