Student Business Incubator at UW Madison Application for Admission

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					           Student Business Incubator at UW-Madison
                   Application for Admission
Directions:        Fill out all fields. Return completed application and attached information, and direct any
                   questions to the Student Business Incubator Board:
                   StudentBusinessIncubator@gmail.com

Date: ___3/21/2011_____

1. Company Information

Business Name:                          Liico Brand Cups

Please check:                              (A) Business currently in operation
                                        X (B) Proposed business not yet in operation
Business Description:                   Our business is based off of a collapsible coffee mug, which we
                                        have designed ourselves and are in the process of fabricating.

Address:                                2092 Carroll Ave
                                        St. Paul, MN 55104

Telephone:                              (651) 324 - 3355

E-mail:                                 mthickey2@wisc.edu
                                        jemcguire@wisc.edu
Web-site (if available)

When was the business started           May 2010
(month/year)
Is the business a sole                  Partnership (Going to become a LLC)
proprietorship, partnership,
corporation, or nonprofit:
Are any faculty involved with           Alan Dines (Office of Corporate Relations) has helped with
the business? If yes, what role         advice on our business plan and meeting other students and
do they play?                           alumni with their own businesses.

                                        We met with WARF to discuss possible patent options.

2. Founder/Owner

Place primary contact first. If there is more than one founder/owner, fill in the following fields.

      Name         Telephone            E-mail             On              Current Status               Studying
                                                        Academic                                      abroad in the
                                                        Probation                                     coming year
1 Margaret         (651) 324       mthickey2@                           X Undergraduate
   Hickey          - 3355          wisc.edu            X    No          Major Finance             X      No
                                                                        Graduation Date
                                                                        May 2012
2 John             (651) 324       jemcguire@                           X Undergraduate
   McGuire         - 0230          wisc.edu            X    No          Major Biomedical          X      No
                                                                        Engineering
                                                                        Graduation Date
                                                                        May 2013



                                                        1
         Student Business Incubator at UW-Madison
                 Application for Admission

3. Background

* PLEASE ATTACH THE FOLLOWING INFORMATION *

Plans will be evaluated on how realistic, precise, and thorough they are. Length
is not important; rather, please concisely show the thoughts that have gone into
your company. Include as much of the following as possible to help show
progress or a well thought-out idea.

       Business Plan
           •   History (Not applicable if not yet in operation)
           •   Past milestones (Not applicable if not yet in operation)
           •   Future Timeline
           •   Description of product(s) and/ or service(s)
           •   Resources necessary for operation (e.g. people, equipment, financing)

       Financial Plan – projections at least one year from start of tenancy
           •    Revenue
           •    Expenses

       Marketing Plan
           •   Target market – who needs or will buy your product(s)/service(s)
           •   How will you reach your target market
           •   What are your companies’ strengths and weaknesses
           •   What are your companies’ opportunities and threats


Product or Service          Liico Brand Collapsible Coffee Mug
Name:

Product Description: Our product is a coffee mug that is designed for optimal
                     portability, eliminating the hassle of carrying around an
                     empty coffee mug. The mug can maintain a rigid form
                     while full of liquid, but when the user is finished, the mug
                     will collapse into a disc-like form for easy transportation.

Target Market:              The everyday coffee drinker (Students and college
                            campuses especially)

4. Personal Statement

Please include a personal statement (maximum 1000 words) covering all of these topics: 1)
Why you want to be an entrepreneur, 2) Why you think your business will be successful, 3) What
benefit you hope the Incubator will provide your business, and 4) Why your business should
receive one of the six open spaces. Please include any other information you would like the
Student Business Incubator Board to consider when reviewing the application.




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         Student Business Incubator at UW-Madison
                 Application for Admission
Submitted by:                                     Approved by:
(Business founder/owner information)              (Student Business Incubator Board use only)

Signature John McGuire and Margaret Hickey        Signature

Name       John McGuire and Margaret Hickey       Name

Date          3/25/2011                           Date

Disclaimer:      Information provided will be kept confidential. The final six businesses must sign
                 an agreement for use of space.



Student Business Incubator – Criteria for Admission

The Student Business Incubator will help undergraduate and graduate student entrepreneurs
develop their own businesses. By facilitating hands-on learning and exploration in a supportive
environment, the Incubator will help students turn their passion into a reality, while, at the same
time, benefiting campus and at the same time furthering UW-Madison’s mission of applied
learning.

    1. Applicant(s) must not be under academic probation at UW-Madison

    2. Applicant(s) must categorize their venture as either:
               (A) A business that has started operation
               (B) A business idea, not yet in operation

    3. Applicant(s)/Owner(s) must have a legal business or business idea
          • If the owner(s) have a developed business it must follow legal practices,
               including, but not limited to acquiring revenue in a legal matter (e.g. selling
               products or services)
          • If a student does not have a developed business, but a proposed business idea,
               it must follow legal practices, including, but not limited to, acquiring revenue in a
               legal matter (e.g. selling products or services)

    4. Applicant(s) must complete the application, including the Personal Statement (rated 2
       thru 10; 2-Indadequate 10-Adequate)

    5. Applicant(s) in addition to the application, must provide:
       (*Each criteria rated lowest through highest, 1-5 respectively)
           • Business Plan
                      - History (Not applicable if not yet in operation)
                      - Past milestones (Not applicable if not yet in operation)
                      - Future Timeline
                      - Description of product(s) and/or service(s)
                      - Resources necessary for operation (e.g. people, equipment, financing)
           • Financial projections for future operation (at least one year from start of tenancy)
                      - Revenue
                      - Expenses
           • Marketing Plan
                      - Target market – who needs or will buy product(s)/service(s)
                      - How will you reach your target market
                      - What are the companies’ strengths and weaknesses


                                                  3
     Student Business Incubator at UW-Madison
             Application for Admission
                  -   What are the companies’ opportunities and threats

6. Applicant should benefit from the space

7. The final ten (10) applicants must give five minute presentation, followed by ten minute
   Q&A of Student Business Incubator Board, to narrow down to final six (6) to be granted
   space

8. Applicant(s) who receive space must sign an agreement, including, but not limited to:
      • Abiding by Student Activity Center guidelines
      • Participation in at least one SBI outreach program
      • Releasing UW-Madison and its entities of any legal liability




                                             4
Liico BRAND CUPS
Business Plan
Margaret Hickey and John McGuire
                                                      LICCO BRAND CUPS   2




TABLE OF CONTENTS



  I.     HISTORY………………………………………………….…………………………3

  II.    PAST MILESTONES……………………………………………….………………3

  III.   FUTURE TIMELINE………………………………………………………………...3

  IV.    PRODUCT DESCRIPTION……………………………………………….….…….3

  V.     RESOURCES REQUIRED…………………………………………………………4

  VI.    FINANCIAL PROJECTIONS……………………………………………………...4

         a. Revenues……………………………………………………....4

         b. Expenses……………………………………………………....4

  VII.   MARKETING PLAN…………………………………………………….................4

         a. Target Market………………………………………………....4

         b. Reaching Target Market……………………………….........5

         c. SWOT Analysis…………………………………………….....5
                                                                          LICCO BRAND CUPS   3


HISTORY
At this time, we have completed a preliminary design and are working on a final design
to manufacture a prototype. We have conducted research of the industry, and an
informal patent search. Furthermore, we have had a conversation with a lawyer on
intellectual property as well as with the business development office at the University of
Wisconsin- Madison.

The idea of the collapsible Liico cup formed in April 2010 and the planning has
continued thereon after. The creators of the cup are Margaret Hickey and John
McGuire.

PAST MILESTONES
Meet with WARF to ensure that we are not hinging on other product’s patents. Have
had multiple meetings with Alan Dines from the UW Office of Corporate Relations to
discuss future plans and discuss issues with other early business owners.

FUTURE TIMELINE
Partner with product designer in Minnesota and finish prototype by July 2011
File as an LLC with the state of Minnesota May 2011
Purchase Web domain May 2011
File provisional patent
July 2011 Finish Website design
Register to attend The Sustainable Brands Innovation Open by April 11, 2011
Pitch Product (by August 2011)

PRODUCT DESCRIPTION
Liico Brand Cups would produce collapsible travel mugs that can hold any liquids,
including hot beverages. The cup will allow for environmentally conscious consumers to
carry drinks outside of the home and not be pressed for room in a backpack, travel
luggage, briefcase, or car.
The Liico cup would be a collapsible thermos style mug that offers practicality without
compromising convenience or style. The mug would include FDA approved Liquid
Silicon Rubber in the interior to hold the liquid (hot or cold). The mug would expand and
contract (to around one inch in height). Other design elements include a spring that
would allow the cup to pop open and lock shut as well as an exterior that limits the
appearance of the outer rings. The cup will allow for environmentally conscious
consumers to carry beverages and not be pressed for space in a backpack, travel
luggage, briefcase, or car.

We would like the line of cups to include different styles for different purposes: such as
a coffee thermos, a water bottle, and a cup suited for fountain drinks.
                                                                        LICCO BRAND CUPS    4


RESOURCES REQUIRED
We will require legal council for an official patent search and filing our own formal
patent. Also needed is a design team to finalize the design, as well as fabrication and
testing equipment for our final product. Because we are developing a new product, we
will need financing to support fabrication and testing. However, we have already
secured an investor, which is why we have decided to become an LCC.

FINANCIAL PROJECTIONS (at least 1 year from start of tenancy)

Revenue
Selling for approximately $12, with an approximate cost of $6 to fabricate (not including
overhead cost.)
Plan A:      Best case scenario: the product is sold at grocery stores and locations
             such as Target, Walmart. Estimated sales approximately 50,000 units,
             with an operating profit of $269,000 (excluding overhead cost.)
Plan B:      Sell product on college campuses, in small coffee shops and local
             businesses. Estimated sales approximately 10,000 units, with an
             operating profit of $29,000 (excluding overhead cost.)

Expenses
      1. $160 filing fee for starting an LLC corporation in the state of Minnesota
         http://www.sos.state.mn.us/index.aspx?page=177
      2. Development and Prototyping Questions
         a. $30,000 engineering
         b. May have to front the product in certain stores in order to be first to
             market.
         c. Filing a provisional patent because it allows you to freely operate and
             does not cost much whereas as real patent is more expensive.
      3. $800 estimated cost to develop website.

MARKETING PLAN

Target market
College Student      Ideal for college students to carry in their backpacks because most
college students have to buy coffee away from the home and have backpacks full of
books. Furthermore, colleges are encouraging students to carry their own drink
containers so that the campus’s can be environmentally friendly. Therefore, marketing
campaigns should also be focused on getting the colleges carry the mug as the official
mug for students to carry.
                                                                        LICCO BRAND CUPS   5

Professionals        To put in briefcases; professionals often buy coffee away from the
home or fill up coffee at the office. The mug won’t take up much room in the car (it can
be stored in the glove compartment) or in a briefcase or pursue. It can also be easily
stored in an office.

Travelers   Perfect for travel because drinks can no longer be carried in, and the
collapsed mug can be thrown in a carry-on bag and filled up in the airport.

Reaching Target Market

Marketing campaigns will be focused on making the consumer aware of the benefits of
being environmentally conscious, and how our product makes that easier. It will be
made clear that a reusable mug is a simple way to eliminate waste, while saving money
at most coffee shops. The mobility and ease of transport of the collapsible coffee mug
speaks for itself, as the product is much more easily stored in the everyday purse or
bag. The initial marketing campaigns will be conducted on college campuses.

SWOT Analysis
Strengths: We have an engineer and business major who are working free of cost, as
well as an investor for early expenses.
Weaknesses: We are a start-up without expansive funds, and the product will be
expensive to fabricate.
Opportunities: Currently, there are no similar products on the market. Coffee shops
and school campuses push for customers to bring their own coffee mugs. We are
students and have connections to Universities.
Threats: Using ordinary travel mugs (Thermos LLC, etc.) or buying a disposable cup.
We are a small company, and if a bigger company steals our product it may be too
expensive to sue them.

				
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