business plan helmate_agler_engert_hammill_lowes (1)

Carolin Engert

Dean Lowes

Kristina Agler

Tyler Hammill

BUSINESS PLAN FOR HELMATE

Degree Programme in International Business

2014/15

1

BUSINESS PLAN HELMATE Agler, Kristina Engert, Carolin Hammill, Tyler Lowes, Dean ZUYD University of Applied Sciences

Degree Programme in International Business

April 2015

Supervisor: Gijsberts, Gaby

Number of pages: 58

Appendices: 1

Keywords: Business plan, children, helmet, safety

____________________________________________________________________

The purpose of this thesis was to show the current financial situation of HelMate as

well as future planning for the company.

Style of the abstract is Abstract.

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MANAGEMENT SUMMARY

Helmate is a small start company with focus in the bike safety market; specifically

with young children’s helmets. We strive for being a market leader with stunning

designs and being seen as a fashionable, eco-friendly choice compared to our com-

petitors.

In the countries of Germany and the Netherlands, bike riding is becoming increasing-

ly more and more popular meaning more and more sales in bikes and related equip-

ment such as helmets. This creates a great potential for an ever-increasing market.

Currently, our plans are to focus on helmets for kids aged from 2 up to 12. This

makes our target market being adults who have kids between these ages. Though we

are not the only competitor in the market; going up against Abus, Uvex, Ked, Alpina

Sports, Casco, and Nutcase to name a few, we do plan on being a stand-out brand

with our appealing designs and green choices.

Our main focus is to make cycling not only safer but encourage kids to strap on a

Helmate when they go out on their bikes that are stylish and comfortable. We want

kids to see either our ads or their friends with these helmets on and want to join them

in wearing them. We offer helmets between a price range starting from €29.99 for

standard helmets, €39.99 for special helmets and up to €79.99 for special customized

helmets.

With Helmate being aimed towards children, we have decided to ask the target mar-

ket where they would expect to find a product such as ours. They chose that the best

places they would like to see our product is in bike stores, on an online market. As

our Business Plan states that we make a huge profit in the third year, we will expand

the idea of Helmate branded stores and our own production line.

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PRE FACE

In the ranking of bicycle usage of European countries and North America, the Neth-

erlands hold first place with approximately 30 percent of trips that are made by bicy-

cle (Pucher, 1997). Followed by Denmark, Germany is ranked third place by steadily

extending its bicycle usage over the last decades (Pucher, 1997). Besides the increas-

ing fuel prices, studies show that the usage of bicycles not only protects the environ-

ment but also improves health (Pucher et al., 2010). Because of strong believes in the

bicycle as a sustainable transport opportunity the rate of bicycle usage increases tre-

mendously in both the Netherlands and Germany (Welleman, 1995).

Statistics show that children’s head injuries are the main cause of death and chronic

disabilities in cycling-related accidents (Gutsche et al., 2011). Moreover, these inju-

ries could have been prevented in almost 70 percent of all cases if the children would

have worn a helmet. According to the Health Believe Model (HBM) by the social

psychologist Rosenstock (1966), a person will take a health-related action if the per-

son feels that a negative health condition can be avoided. As younger aged children

are not able to decide about their own health security, this responsibility is trans-

ferred to their parents.

There are several debates about whether it is advisable that the government regulates

helmet usage by law and if so, whether this regulation would decrease the figures of

seriously injured persons involved in a bicycle accident. Based on personal observa-

tions and following Internet research, we recognized that there is a need to increase

helmet usage, especially for children in the Netherlands and Germany. According to

these observations we created the start up company Helmate selling uniquely de-

signed helmets on the German and Dutch market. Helmate wants to achieve trust to

their customers and safety for children whilst cycling.

The following work is a detailed explanation of the current market for our company,

known as Helmate. It outlines the challenges we will face as we are entering a mar-

ket for helmets that are aimed towards the younger population of bike users. We aim

to enter the two national markets of the Netherlands and Germany. Moreover, we

applied the Canvas Model, Helmate’s competitive advantage of our Business Model

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and with a special focus on the analysis of our competitors. Furthermore, we are

showing Helmate’s financial statements and position for the first three years and fi-

nally round it up by closing the ending balance sheets. The numbers we used for cal-

culating the Helmate’s financial statements are fictitious numbers but well chosen

with regards to real-life numbers and seasonal effects.

This document outlines our research that we have obtained through many different

resources; such as the Internet and a questionnaire, to obtain our findings about those

markets.

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TABLE OF CONTENT MANAGEMENT SUMMARY ........................................................................................ 3 PRE FACE ........................................................................................................................ 4 LIST OF FIGURES ........................................................................................................... 5 LIST OF TABLES ............................................................................................................ 6 LIST OF ABBREVIATIONS ............................................................................................. 1. INTRODUCTION ....................................................................................................... 7 2. BUSINESS MODEL CANVAS ................................................................................. 8

2.1. Key Partners ......................................................................................................... 8 2.2. Key Activities ...................................................................................................... 8 2.3. Value Preposition ................................................................................................. 8 2.4. Target Market ...................................................................................................... 9 2.5. Cost Structure ....................................................................................................... 9 2.6. Customer Relationship .......................................................................................... 9

2.6.1. Involvement .......................................................................................... 9 2.6.2. Customer Service ................................................................................ 10

2.7. Channels ............................................................................................................ 10 2.8. Revenue Streams ................................................................................................. 11 2.9. Payment Methods ............................................................................................... 11

3. EXTERNAL ENVIRONMENT ............................................................................... 11

3.1. Introduction ......................................................................................................... 11 3.2. The Economy ...................................................................................................... 12

3.2.1. Meso Economy ................................................................................... 12 3.2.2. Macro Economy .................................................................................. 13 3.2.3. Micro Economy ................................................................................. 14

3.3. Market Analysis and Key Trends ....................................................................... 15 3.3.1. Demographical Factors ....................................................................... 15 3.3.2. Political Factors .................................................................................. 17 3.3.3. Ecological Factors ............................................................................... 17 3.3.4. Economicl Factors .............................................................................. 19 3.3.5. Sociocultural Factors .......................................................................... 21

3.4. Competitor Analysis ........................................................................................... 23 3.5. Competitive Advantage of our Business ............................................................. 25

4. FINACIAL ANALYSIS ........................................................................................... 25

4.1. Introduction ......................................................................................................... 25 4.2. Break Even Analysis ........................................................................................... 25 4.3. Sales Scenarios and Projections .......................................................................... 26 4.4. Capital Spending ................................................................................................. 26

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4.5. Operating Costs ................................................................................................... 27 4.6. Funding Requirements ....................................................................................... 27

5. FINANCIAL STATEMENTS .................................................................................. 28

5.1. Introduction ......................................................................................................... 28 5.2. Opening Balance Sheet ....................................................................................... 28 5.3. Profit and Loss Budget ....................................................................................... 30 5.4. Liquidity Budget ................................................................................................. 35 5.5. Ending Balances .................................................................................................. 38

6. CONCLUSION ......................................................................................................... 44 LIST OF REFERENCES ................................................................................................ 45

APPENDIX I ............................................................................................................ 46

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LIST OF FIGURES

Figure 2: Birth rate for the Netherlands

Figure 3: Birth rate for Germany

Figure 4: Public transportation in the Netherlands

Figure 5: Amount of bikes per 100 households

Figure 6: Bicycle ownership per age

Figure 7: Helmet usage amongst children between the ages 6 to 16

Figure 8: Gas prices in Germany and in the Netherlands

Figure 9: Number of bicycle rides of person per day, by age in the Neth-

erlands

Figure 10: Break-even analysis.

Figure 11: Break-even analysis.

Figure 12: Investment Budget.

Figure 13: Opening Balance Sheet.

Figure 14: Profit and Loss Budget.

Figure 15: Liquidity Budget.

Figure 16: Ending Balance Sheet Year 1



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1 INTRODUCTION

In general, helmets are seen as unnecessary and “uncool”. Moreover, they are seen as

a liability for the wearer. Nonetheless, it is a crucial tool to participate safely in the

traffic environment. Especially the safety of children is often endangered due to self-

caused mistakes or misconduct of other traffic participants. Statistics show that chil-

dren’s head injuries are the main cause of death and chronic disabilities in cycling-

related accidents (Gutsche et al., 2011). Furthermore, these injuries could have been

prevented in almost 70 percent of all cases if the children would have worn a helmet.

According to the Health Believe Model (HBM) by the social psychologist

Rosenstock (1966), a person will take a health-related action if the person feels that a

negative health condition can be avoided. As younger aged children are not able to

decide about their own health security, this responsibility is transferred to their par-

ents.

The aim of HelMate is to change the negative view of helmets and want to give them

a new image. The company wants to reinvent the helmet as a fashionable accessory,

combined with the highest safety standards. To reach this goal, we want to attract

children with current and state of the art designs, whilst ensuring outstanding quality

and high safety to give parents the guarantee that their children are safe.

HelMate’s long-term goal is to establish its helmets as not only something necessary,

but also as something children like to wear and automatically use it while riding their

bike. HelMate – your friend on the street.

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2 THE BUSINESS MODEL CANVAS

2.1 Key partners

The key partners we are planning on working with for the point of sales are Toys’R’Us, MyToys, Decathlon, Bikemax, Intersport, Sportscheck, Planet Sport, and local bike shops in the Netherlands and Germany. The reasons we are going to coop-erate with these other companies for selling points are because they are well estab-lished with kids and well known sport stores.

For production, we will collaborate with MET helmet, an Italian based helmet pro-ducer known for its outstanding quality. Due to the producer’s location, shipping costs are expected to be lower and faster than cooperating with a producer situated overseas or in Asia.

For delivering the product we will use the domestic shipping services of PostNL and Deutsche Post. Both provide the cheapest delivery and are the national postage com-panies of the Netherlands and Germany.

2.2 Key activities

As key activities, our company will be undertaking the duty of designing the helmets

and then sending those deigns to MET helmets to have them produced. Not only the

design of the helmet, but also will we designing the packaging boxes that our cus-

tomers will receive. Furthermore, we as a company will be in charge of maintaining

strong customer and business relations as well as carrying out the maintenance of our

own online store.

2.3 Value preposition

The values we aim for within the company are safety, high quality, Eco friendliness,

and exclusivity. By cooperating with an Italian based manufacturer we aim to claim-

ing the idea of association of “Italian Style” production, which stands for outstanding

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quality as well as unique style. For Eco friendliness, our products are produced in an

efficient way while ensuring that the environment is harmed as little as possible. Our

products will be well developed and fashionable with safety as the highest priority.

With exclusivity, we plan to offer helmets that will be completely customizable by

the customer to allow helmets that are tailored to our clients.

2.4 Target Market

The target market for our helmets are parents, aged from 20 to 50 years, with chil-

dren, between ages 1 to 14. The aim of advertisements that we plan on using are to

appeal to the children as being seen as the “cool” thing to have but also in the eyes of

the parents as a safe, high quality, and reliable product. Therefore, we are serving a

niche market with our customisable helmets for children.

2.5 Cost structure

Our main costs will arise from production, shipping, maintenance, and wages. The

distribution of those costs fall on us as a company. Our customers, however, will pay

the shipping by themselves. Distributing our products to the several intermediaries,

we are going to commission either TNT or DHL to deliver our products to the out-

lets.

2.6 Customer relationship

2.6.1 Involvement

We will enable customers to design their own helmets. Through our webpage they

are able to choose between different colours, materials and designs to create their

individual helmet.

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2.6.2 Customer service

We will provide ongoing support through warranty and a service hotline during

working hours as well as a request form on our website. Furthermore, we are going

to interact with our customers through social media channels, like Facebook,

YouTube and Instagram.

2.7 Channels

As primarily distribution channel we use our own web shop. Additionally, we will

utilize the web shops of well-established intermediaries like Toys”R”Us, MyToys,

and Bikemax. Furthermore, we will place our products at the brick-and mortar shops

of the above-mentioned companies as well as in local bike shops in both countries.

Channel phases

1. Awareness

HelMate is planning on using social media channels as primary resource for

advertisement. Furthermore, we use the already established brand images of

our intermediaries. If possible, we aim to set up own television advertise-

ments during the day on children’s channels.

2. Evaluation

With over 50 distributers and more than 250 retailers, MET helmets has a

well-established brand recognition worldwide and hence, supports our core

value of high quality to ensure safety.

3. Purchase

As mentioned above in 2.7 Channels, we will reach our customers primarily

through our own web shop as well as through intermediaries.

4. Delivery

Through advertisement, we want to make customers aware of the importance

of safety, especially for their children. Our unique selling point is the combi-

nation of stylish helmets the most important factor: safety.

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5. Aftersales

We provide our customers with livelong warranty. Additionally, in case of an

accident and damage of the helmet within two years after purchase, we give

our customers the chance to buy a new helmet at a reduced price.

2.8 Revenue streams

We will set three different price categories on a fixed menu pricing for our helmets:

Basic helmet: €29,99

Special Designs (Disney): €39,99

Customizable helmets: €29,99 – 79,99

2.9 Payment methods

Our customers are able to pay online via Credit Card, PayPal, Ideal (Netherlands)

and Giro Card (Germany) to ensure an easy and convenient shopping experience by

using their preferred payment method.

3 EXTERNAL ENVIRONMENT

3.1 Introduction

This chapter focuses on the external environment of HelMate. Firstly, the current

economic situation will be discussed, followed by a market analysis focused on the

key trends. Furthermore, we will evaluate our competitors and compare our own

business model over them.

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3.2 The Economy

3.2.1 Mesoenvironment

Who are my customers?

Our main customers are parents in Germany and the Netherlands between the ages of

20 and 50 with children between the ages one to twelve.

Who are my main competitors?

According to online shops like mytoys.de, testberichte.de, stiftungwarentest.de and

kidshealth.com, our main competitors are the well-known brands Abus and Uvex.

Furthermore, KED, Alpina Sports, and Casco, one of the main producers in Germa-

ny, are additional competitors in the market for helmets. Finally, we have to compete

with the online company “Nutcase” (www.nutcase.com), which also offers a great

amount of designs for children helmets.

What are the competitors’ prices?

Due to Internet research the price range of the competing children helmet producer

lies within €30 to Euro €50 (www.abus.com, www.alpina.com, www.nutcase.com).

What are customers willing to pay for our product?

On average, our customers are willing to pay between €21 and €40 for children’s

helmets.

What is the average number of children per household?

According to www.youthpolicy.nl, the average number of children per household

corresponds to 1.72 in the Netherlands and 1.38 in Germany (www.destatis.de)

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Which transportation options are used?

According to our research, children mostly travel either by car together with their

parents.

3.2.2 Macro environment

Are there any regulations?

There are no strict regulations by law for helmet restrictions for adults and children

in Germany. According to the traffic law there are no administrative fees imposed to

adults and children for not wearing a helmet. However, it is recommended to wear a

helmet (www.fahrrad.bussgeldkatalog.org).

Likewise, there are no regulations for wearing helmets to the Dutch law

(www.rijksoverheid.nl).

Are there any regulations for producing helmets?

With regard to the European Committee for Standardization (CEN) there is a Euro-

pean standard helmet regulation for pedal cyclists (CEN1078, February, 1997),

meaning that these same regulations hold for both Germany and the Netherlands.

Are the people caring about whether our product is eco friendly?

As results of our research, 35 percent of all participants care about an eco-friendly

production. Besides our primarily core value of safety, eco friendliness is another

important factor

What kind of technological opportunities are there?

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Due to 3D printing innovations, HelMate uses these machines to create cheap proto-

types. Furthermore, to decrease our ecological footprint, HelMate uses eco-friendly

materials (www.reverdia.com) to ensure a sustainable resource usage.

3.2.3 Micro Environment

What technologies do we need?

As HelMate does not own its own production facilities, we do not need to take care

about the machinery. Nonetheless, our company needs to have necessary equipment

of computers, printers as well as design and editing programs.

What knowledge do we have?

As our company consists of four people, we divide the necessary tasks and areas as

follows:

Dean Lowes: Creative Director

Tyler Hammill: COO

Carolin Engert: Customer Relations Management

Kristina Agler: CEO, Marketing

Additionally, Tyler will provide the company with a website and an online shop to

ensure that our customers are provided with every information they need.

As Kristina already has experience in Online Marketing, especially with social media

channels, she is going to set up all necessary online channels to reach existing and

future clients.

Who are the main competitors in the children’s helmet market?

According to online shops like mytoys.de, testberichte.de, stiftungwarentest.de and

kidshealth.com, our main competitors are the well-known brands Abus and Uvex.

Furthermore, KED, Alpina Sports, and Casco, one of the main producers in Germa-

16

ny, are additional competitors in the market for helmets. Finally, we have to compete

with the online company “Nutcase” (www.nutcase.com), which also offers a great

amount of designs for children helmets.

Compared to our competitors, HelMate is going to provide unique and colourful de-

signs that children actually like. Our company aims to adjust the helmets to chil-

dren’s wants whilst ensuring their safety in the traffic environment.

What is HelMate’s financial situation?

So far, HelMate does not have any financial capital. For future investments and

growth of the company HelMate needs to find a producer for the helmets and set the

right price to meet the financial goals. After an introduction period, we will check

whether our products are successful in both the Dutch and German market. Addition-

ally, the board of directors needs to decide whether the company should keep up to

the license agreements with producers or to get a loan to build own production facili-

ties.

3.3 Market analysis and key trends

3.3.1 Demographical factors

Definition of Birth rate: This entry gives the average annual number of births dur-

ing a year per 1,000 persons in the population at midyear; also known as crude birth

rate. The birth rate is usually the dominant factor in determining the rate of popula-

tion growth. It depends on both the level of fertility and the age structure of the popu-

lation (indexmundi).

Birth rate (births/1,000 population) for the Netherlands

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Figure 2: CIA World Factbook, (2012), Birth rate for the Netherlands, Retrieved

from: http://www.indexmundi.com/g/g.aspx?v=25&c=nl&l=en

Birth rate (births/1,000 population) for Germany

Figure 3: CIA World Factbook, (2012), Birth rate for Germany, Retrieved from:

http://www.indexmundi.com/g/g.aspx?v=25&c=nl&l=en

18

Both graphs show that the birth rate in the Netherlands and Germany decreased in

the last decade. In the long run, this is a major threat for HelMate as the figures state

a decrease in our potential target market. However, in the year 2012 a slight increase

in the birth rate leads to the assumption, that also for the future, HelMate’s target

market is big enough to make profit.

3.3.2 Political factors

There are no strict regulations by law for helmet restrictions for adults and children

in Germany. According to the traffic law there are no administrative fees imposed to

adults and children for not wearing a helmet. However, it is recommended to wear a

helmet (www.fahrrad.bussgeldkatalog.org).

Likewise, there are no regulations for wearing helmets to the Dutch law

(www.rijksoverheid.nl).

Are there any regulations for producing helmets?

With regard to the European Committee for Standardization (CEN) there is a Euro-

pean standard helmet regulation for pedal cyclists (CEN1078, February, 1997),

meaning that these same regulations hold for both Germany and the Netherlands.

Hence, HelMate makes sure that all contracted producers comply with these regula-

tions.

3.3.3 Ecological factors

To decrease our ecological footprint, HelMate uses eco-friendly materials

(www.reverdia.com) to ensure a sustainable resource usage. So far, our research

shows that potential customers do care about eco-friendly production. Additionally,

recent trends show that sustainable responsibility increases rapidly and becomes

more important to both consumers and producers (Bahmra et al. 2008).

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Public transportation in the Netherlands and in Germany

In the Netherlands with 16.5 million inhabitants, every day 4.5 million trips are made

by bus, tram and metro as well as one million are made by train and no fewer than

14.5 million by bicycle. The average distance that the Dutch travel each day is slight-

ly below the European average. In urbanised areas public transport accounts for as

much as 40 to 50% of journeys, more than half of journeys in the core area of Am-

sterdam being made by public transport or bicycle.

Figure 4: Public transportation in the Netherlands

http://www.washingtonpost.com/blogs/wonkblog/post/what-we-can-learn-from-

german-public-transit/2011/12/04/gIQAfpqkSO_blog.html

The reasons to travel by train also differ from the reasons to travel by bus, tram or

metro. The major part of all train trips in the Netherlands is commuter traffic (50%),

while a smaller share (13%) uses the train for education or social reasons. Travel by

bus, tram or metro is for work or education (both 25%) or for going shopping or vis-

iting (both 13%) (Emta, 2010).

In Germany’s urban areas railroad lines connect bigger cities and public transport

becomes a quite comprehensive and efficient system. Even smaller towns are con-

nected quite well to public transport in Germany and therefore you might even be

able to get around without a car. Public transport in Germany usually includes trams,

buses, underground trains, and suburban express trains in large urban areas. Roughly

88 percent of Germans live within a kilometre of a transit stop. Nevertheless, the

transportation fares in Germany have increased year by year.

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3.3.4 Economical factors

Figure 5: Wirtschaftsrechnungen (2012), Anzahl der Fahrradgüter je 100 Haushalte,

Retrieved from: Statistisches Bundesamt Wiesbaden, Germany

According to the Statistisches Bundesamt Germany, it is stated that the amount of

bicycles per household increased over the last ten years. Especially children between

the ages of six to seventeen are holders of bicycles (Figure 4). As a result, Germany

offers a growing opportunity as market for HelMate’s products. Additionally, the

Netherlands leads the statistic of bicycle usage where 30 percent of all trips are made

by bike (www.ibike.org, 2014), which strengthens our decision to choose both coun-

tries as main markets for our products.

172

174

176

178

180

182

184

186

188

190

2003 2004 2005 2006 2007 2008 2009 2010 2011

Amount of bikes per 100 households


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Figure 6: Mobilität in Deutschland (2008), Fahrradbestand nach Altersgruppen, Re-

trieved from: Bundesministerium für Verkehr, Bau und Stadtentwicklung, Germany

Figure 7: Forschung kompakt (2014), Fahrradhelmnutzung nach Altersgruppen, Re-

trieved from: Bundesanstalt für Straßenwesen, Germany

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 to 6 7 to 10 11 to 13 14 to 17 18 to 29 30 to 39 40 to 49 50 to 59 60 to 64 65 to 74 75 and older

Hund

reds

Bicycle owenership per age Bicycle owenership per age

0

10

20

30

40

50

60

70

80

90

100

Percen

tage

Helmet usage amongst children between the ages 6 to 16

6 to 10

11 to 16

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As shown in Figure 5, the helmet usage amongst children between the ages of six to

sixteen in Germany increased steadily. Especially after 2010, the percentage of hel-

met usage almost doubled from 38 percent to 75 percent (6 to 10) and from 15 per-

cent to 28 percent (11 to 16). As stated in the following paragraph of sociocultural

factors, the Dutch population refuses to wear helmets as they believe in the well-

developed bicycle environment of their country (Bron: LAS 2005).

Gas prices in Germany and in the Netherlands

Figure 8: Gas prices in Germany and the Netherlands

In recent years the price of gas has been constantly increasing from the days before

2000. They reached record highs in 2008 when we were in an economic crisis. At the

time of conducting the research it showed that gas was steadily in Europe. In the

Netherlands they see some of the highest prices within Europe. This makes biking

more appealing for people within the country and around Europe.

3.3.5 Sociocultural factors

1. Cycling in Holland is very safe; it has the lowest cycling death and injury rate in

the world. The Dutch have created a safe, secure, and mostly worry-free cycling in-

frastructure (in example separating bicycle roads from car roads).

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2. No regulations for wearing helmets. And that is probably not going to change, as

the level of bike usage would suffer from this. The Dutch government is proud of its

high bike usage and, since accident rates are low, they would like to keep it that way.

3. Since nobody wears a helmet, especially amongst the younger generation, peer

pressure is a factor that plays a role in this too.

Due to the well-developed cycling infrastructure, Dutch people feel save enough not

to wear a helmet. With a slightly less developed infrastructure, the German popula-

tion, however, feels that there is a need for wearing helmets, at least for their children

(Bron: LAS 2005)

The graph shows the number of bicycle rides of persons per day by age in the Neth-

erlands. As recent statistics show, cycling is an important trend in the Netherlands

and 13.5 million of the Dutch population have a bike (Bron: LAS 2005). In compari-

son to the Netherlands, only 9.92 million cycles per day are made in Germany

(VuMa).

The y-axis demonstrates the amount of rides per day whereas the x-axis shows the

different age groups starting from the age group 0 to 12 years and ending with the

age group 75 and older.

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Figure 9: Fietsersbond, (2008), Fietsen in cijfers. [ONLINE] Retrieved from:

http://www.fietsersbond.nl/de-feiten/fietsen-cijfers#1

Hence, the Netherlands offers a great opportunity for our company, which cannot be

ignored. Our challenge is the analysis of how to reach and to convince the Dutch

population to use our product.

In Germany wearing a helmet whilst cycling has the image of impractical and look-

ing “ugly”. The German Federal Ministry of Transport launched the campaign “I

wear a helmet” to change the image and increase the helmet quota. In cooperation

with the German fashion designer Guido Maria Kretschmar he designed stylish hel-

mets for adults for the Berlin fashion week in 2013 to spread out the message that

helmets are sexy and attractive.

3.4 Competitor analysis

Abus

Product: Strive for a high quality, durable, trustworthy and simple product. Not fo-

cused on helmets alone, but on safety in general. Therefore we have an advantage

over them as we focus on helmets, and put all our effort into improving our helmets.

Another advantage we have over Abus is their limited designs for their children’s

helmets.

Price: Price range is big. Ranges from premium prices to middle class prices. As we

focus on children’s helmets we do not concern ourselves with Abus’s high-end hel-

mets. This means we have about the same pricing. Children’s helmet prices start

from about 30 Euro.

Promotion: One key promotional channel Abus uses is sponsoring. They sponsor

start-up companies using their product and racing teams. Although we also want to

advertise through sponsoring, since we focus on children’s bicycle helmets, they do

not sponsor in the same field as us.

25

Place: Abus is a German based brand and active all over the world. It makes use of

intermediaries and franchising.

Competitive Advantage: Since Abus is mainly focused on the concept of safety, and

are already well known for this, they have an advantage over us in this respect. Since

we are a start-up company, HelMate doesn’t have much of a reputation yet, but we

plan on focusing on the concept of safety too, as well as the custom designs.

Uvex

Product: Much like Abus, Uvex does not dedicate all its attention to their helmets.

Uvex focuses on two main sectors, helmets and eyewear. Uvex also strive for high

quality products, but have limited designs for children’s helmets.

Price: Prices start at about 30 euros and go all the way up to 200 Euro for their race

helmets. The prices for their children’s helmets align with ours meaning our prices

will range from 29.99 Euro up to 39.99 Euro.

Promotion: Much like Abus, Uvex promotes itself through sponsorships. Their phi-

losophy is Uvex provides head-to-toe protection. Every day. Around the clock.

Worldwide. That is our mandate. Protecting people.” (www.uvex-group.com). As

they convey the message that they are here to provide head-to-toe protection, they

send the message that they don’t focus on helmets alone.

Place: Uvex has been a German based company for over 80 years now, and is active

around the globe. It makes use of intermediaries.

Competitive Advantage: Uvex has been in business for over 80 years now, and are

therefore a very well established brand. Since we are a start-up company getting

brand awareness will be our main struggle, so this is where already well-established

brands such as Uvex have an advantage over us.

26

3.5 Competitive advantage of our business model

Compared to our competitors, HelMate is going to provide unique, colourful and

stylish designs that children actually like. Our company aims to adjust the helmets to

children’s wants whilst ensuring their safety in the traffic environment. Furthermore

HelMate is providing eco-friendly materials and we also ensure this through con-

tracts with our producers. The fact that our company consists of three different na-

tionalities is giving us another unique advantage over our competitors.

4 FINANCIAL ANALYSIS

4.1 Introduction

Through the contents of this chapter, we will outline the ideas of a financial analysis.

It will be discussed what our expected number of helmets must be sold to reach the

breakeven point. Also the projections of sales and scenarios that we anticipate to

have within the company in the first years of operation will be explained. That will

be followed by an explanation of our capital spending at Helmate. Then, this section

will finish off with outlining our operating costs and our requirements of funding.

4.2 Break even analysis

HelMate BP analysis

Standard Customized Sales price per unit 29,99 39,99 Variable cost per unit 15 20 Contribution Mar-‐gin 14,99 19,99 Sales mix in units 2 1 3 14,99 39,98 54,97

27

Weighted-‐average CM per unit 18,32333333 BP units 0 0

Fixed costs 3000

4.3 Sales scenarios and projections

HelMate BP analysis

Standard Customized Sales price per unit 29,99 39,99 Variable cost per unit 15 20 Contribution Mar-gin 14,99 19,99 Sales mix in units 2 1 3 14,99 39,98 54,97 Weighted-average CM per unit 18,32333333 BP units 133 50

As shown in the table above, the breakeven point on units will be 133 of our standard

helmets and 50 of the customized helmets. As calculated (Appendix I: Basics), total

estimated sales in units for year one will be 1190, which is calculated as the sum of

872 standard helmets and 318 specialized helmets. These figures clearly indicate that

we will meet our breakeven analysis and therefore will make a profit in the end.

Hence, the set selling price of €29.99 for the standard helmets and €39.99 for the

specialized are appropriate to meet the company goals.

28

4.4 Capital spending

Current assets:

Envelopes: €100.00 per year

Business Cards: €35.00 per year

Invoice paper: €100.00 per year

Office supplies: €50.00 per month

Long-term assets: Storage room: €696

Rent: €800 (including furniture Centre Ceramique Maastricht)

Computer: €1,000 *4

Printer: €588.06

Beamer: €250,000

4.5 Operating costs According to our financial statement, the operating costs for our company include all

or expenses which are packaging costs, telephone costs, server costs, rent, business

insurance, marketing costs, salaries, depreciation, office supplies, shipment expenses.

4.5 Funding requirements

Investment Budget Fixed Assets Equipment 2.000 Deposit 1.000 Total FA 3.000 Current Assets Cash 14.250 Inventory 2.550

29

Office Supplies 1.950 Prepaid Rent 800 Total CA 19.550 Total 22.550

As a start-up company, we have some investments made in the beginning to help fuel

our starting operations. These investments include €2,000 for equipment costs (com-

puters and software required for designs). Then, we will place a €1,000 deposit on

our rented office space. As a start-up, we will use our own savings as starting cash

totalling €14,250. We will begin operations with €2,550 worth of inventory to begin

sales. We will have €1,950 in office supplies to last us the year and finally we will

prepay rent for the forthcoming month.

5 FINANCIAL STATEMENTS

5.1 Introduction

This chapter of the business plan, we are going to outline the money matters of our

company. This includes how our company acquires our investments; what we will

have for start-up cash, starting inventory, and the type of assets we will need. Also

included, is our financing plan; ways in which we will finance our investments. On

top of that, we will talk about our projected profit and loss budgets and what we ex-

pect after three years of operation from the finance side of our business.

30

5.2 Opening balance sheet

As you can see on our Opening Balance Sheet, HelMate’s total assets are valued at

€22,550 and are divided in the following:

- Equipment: this account represents the computers etc. that HelMate needs to

operate. It consists of 4 computers valued at €500 each.

- Deposit: this account represents the deposit we have to pay for our office.

Since the deposit is only returned when HelMate no longer rents the office,

the value of this account stays the same every year.

- Cash: this account represents the amount of cash HelMate possesses (on

hand).

- Inventory: this account represents the products we have ‘in stock’ (expressed

in monetary value).

- Office Supplies: this account represents the supplies (such as Stationary)

HelMate needs to operate. We order the same amount every year.

- Prepaid Rent: this account represents the rent HelMate pays one month in ad-

vance. The value of this account stays the same every month.

Also HelMate’s total Equity capital is €18,050, and consists of only one account;

Capital. The Capital account is established by our private contributions, which are

€4,512.50 each.

31

Finally HelMate’s total liabilities are €4,500 and consist of only one account; Suppli-

ers. The Suppliers account represents the combined cost of the Inventory account and

the Office Supplies account, since these are the Assets that we acquire through sup-

pliers.

32

5.3 Profit and loss budget

Profit-and-loss budget Jan Feb Mar Apr May Jun

Gross profit

Turnover, sales standard 479,84 719,76 1.199,60 1.439,52 1.679,44 2.879,04

Turnover, sales special 219,96 439,92 549,90 879,84 1.319,76 1.759,68

Turnover Shipment 90,00 144,00 225,00 288,00 360,00 576,00

Total turnover, sales 789,80 1.303,68 1.974,50 2.607,36 3.359,20 5.214,72

COGS standard 160,00 240,00 400,00 480,00 560,00 106,00

COGS special 60,00 120,00 150,00 240,00 360,00 480,00

COGS Total 220,00 360,00 550,00 720,00 920,00 586,00

Packaging 100,00 160,00 250,00 320,00 400,00 640,00

Telephone 200,00 200,00 200,00 200,00 200,00 200,00

Server costs 15,00 15,00 15,00 15,00 15,00 15,00

Rent 800,00 800,00 800,00 800,00 800,00 800,00

Business insurance 75,00 75,00 75,00 75,00 75,00 75,00

Marketing 50,00 50,00 50,00 50,00 50,00 50,00

Salary (incl taxes) 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00

Depreciation 50,00 50,00 50,00 50,00 50,00 50,00

Office supplies 162,50 162,50 162,50 162,50 162,50 162,50

Shipment expense 50,00 80,00 125,00 160,00 200,00 320,00

Total Cost 2.722,50 2.952,50 3.277,50 3.552,50 3.872,50 3.898,50

Net profit before taxes -1.932,70 -1.648,82 -1.303,00 -945,14 -513,30 1.316,22

33

Jul Aug Sep Oct Nov Dec Total Year 1 Year 2 Year 3

3.358,88 3.358,88 2.879,04 1.679,44 2.879,04 3.598,80 26.151,28 29.990,00 38.987,00

2.199,60 2.639,52 1.759,68 1.319,76 1.759,68 2.639,52 17.486,82 21.996,00 82.485,00

684,00 720,00 576,00 360,00 576,00 756,00 5.355,00 8.100,00 12.600,00

6.242,48 6.718,40 5.214,72 3.359,20 5.214,72 6.994,32 48.993,10 51.986,00 121.472,00

1.120,00 1.120,00 960,00 560,00 960,00 1.200,00 7.866,00 10.000,00 19.500,00

600,00 720,00 480,00 360,00 480,00 720,00 4.770,00 12.000,00 15.000,00

1.720,00 1.840,00 1.440,00 920,00 1.440,00 1.920,00 12.636,00 22.000,00 34.500,00

760,00 800,00 640,00 400,00 640,00 840,00 5.950,00 9.000,00 14.000,00

200,00 200,00 200,00 200,00 200,00 200,00 2.400,00 2.400,00 2.400,00

15,00 15,00 15,00 15,00 15,00 15,00 180,00 180,00 180,00

800,00 800,00 800,00 800,00 800,00 800,00 9.600,00 9.600,00 9.600,00

75,00 75,00 75,00 75,00 75,00 75,00 900,00 900,00 900,00

50,00 50,00 50,00 50,00 50,00 50,00 600,00 600,00 600,00

1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 12.000,00 12.000,00 12.000,00

50,00 50,00 50,00 50,00 50,00 50,00 600,00 600,00 600,00

162,50 162,50 162,50 162,50 162,50 162,50 1.950,00 1.950,00 1.950,00

380,00 400,00 320,00 200,00 320,00 420,00 2.975,00 4.500,00 7.000,00

5.212,50 5.392,50 4.752,50 3.872,50 4.752,50 5.532,50 49.791,00 63.730,00 83.730,00

1.029,98 1.325,90 462,22 -513,30 462,22 1.461,82 -797,90 -11.744,00 37.742,00

HelMate’s profit and loss budget is divided up in months for the first year and for

year two and three as a total for the year. The budget starts with showing total turno-

ver from sales for standardized and special helmets as well as the turnover shipment.

Furthermore, it includes the total Cost of Goods sold for our standard and specialised

helmets and finally all other expenses like packaging, telephone, server costs, rent,

business insurance, marketing, Salary (incl. taxes), depreciation, office supplies and

shipment expenses. In the end, we are going to show our net profit before taxes.

34

According to our survey we found out that our customers are willing to pay an

amount between €30 up to €80 for helmets. Therefore, we set the price for our stand-

ard helmet for €29.99 and we took the average from those amounts and set the price

for the specialised helmets for €54.99. We also include the shipment price of €4.50,

which we asked from our customers for the total sales turnover.

Helmate listed all sales for the first and the two following years in a separate sheet

called ‘Basics’. There we stated the following sales figures in units: Year 1 Standard Special Total

January 16 4 20

February 24 8 32

March 40 10 50

April 48 16 64

May 56 24 80

June 96 32 128

July 112 40 152

August 112 48 160

September 96 32 128

October 56 24 80

November 96 32 128

December 120 48 168

Total 872 318 1190

Year 2 1000 800 1800

Year 3 1300 1500 2800

Our company decided to start with an explicitly lower amount on sales in units for

the specialised helmets compared to sales for the standard helmets and we also went

on with this sales structure for the next months and two years. As HelMate is a start-

up company with a not very well known reputation so far, our total sales for the first

month are 20 helmets. The figure shows an increase due to seasonal effects in the

months starting in March to August as the weather is changing and children cycle

more on the streets than in other months. However, we see a decrease in sales in Sep-

tember and October due to a seasonal effect. At the time before and around Christ-

mas parents are looking for nice and stylish presents for their children, that is the rea-

son why we increases the sales in the months November and December.

35

HelMate’s total turnover sales show a continually increasing amount on sales for the

first two years with a total of €48.933,00 for the first year and €51.986,00 for the se-

cond year. As HelMate’s national and international reputation is increasing, we have

a total sales turnover of €137,969.00 for the third year.

Due to the fact that HelMate is a Merchandising company and not manufacturing the

helmets by ourselves, we get them produced by an Italian company. Therefore, our

producing costs are €10.00 for the standard ones and €15.00 for the special helmets.

To calculate the Cost of Goods sold we need the sales units for each month in the

first year times the producing costs for the helmets, standard or special. As we al-

ready mentioned above we just took the total from the second and third year. Due to

seasonal effects in spring and summer months and the time right before Christmas,

we can see a particularly high amount of Cost of Goods sold. Moreover, we can con-

clude that the amounts of Cost of Goods sold are nearly doubled from year to year

(12.636,00, 22.000,00, 34.500,00).

After the total of Cost of Goods sold, we listed all the expenses and started with the

packaging costs, which are €5.00 for each helmet, no matter of a standard or special-

ised one. Therefore, we multiplied the total sales units with the packaging costs for

the first three years.

HelMate rents a fully furnished office, including office chairs tables etc. in Maas-

tricht with a monthly rent of €800. As we are a start-up company we decided to pay

the rent monthly and not on a prepaid amount. In the list for the expenses we also

included ‘telephone’, which are the monthly costs for our four business Mobil

phones, each €50 per month and in total €200 per month. Furthermore, we are paying

an amount of €15.00 monthly for our server and €75.00 monthly for Business Insur-

ance. Moreover, for all our Marketing costs including all social media channels and

advertisement we pay a fixed amount of €50.00 per month. Our monthly salary is in

total €1000.00 and is split up in €250.00 each.

Nevertheless, we rent a fully furnished office we do not have to include the deprecia-

tion for equipment. However, we still have two laptops for €2000.00 and therefore

we need to consider depreciation. We used the straight-line method for calculating

36

depreciation and a residual value of 200 and a time range of three years (36 months).

So the following calculation is (2000-200)/36= 50. Finally, we have a monthly de-

preciation for our laptops of €50.00.

According to our office supplies, we took the amount from the opening balance sheet

€1950.00 divided it by 12 to get a monthly amount of €162.50. For the shipment ex-

pense we multiplied the total sales with shipment expense of €2.50. Our total costs,

including all expenses are for the first year €49.791,00, for the second year

€63.730,00 and for the third year €83.730,00.

Finally, Helmate comes to a net profit before taxes, which is calculated by total turn-

over sales minus total costs, to a net loss of -€797,90 for the first year and -

€11.744,00 for the second year. Finally, we can make our net profit of €37.742,00.

37

5.4 Liquidity budget

38

According to the opening balance sheet, the amount of total liquid assets in January

of year one is €14,250.00. Payments in January include the fixed costs for telephone

(€200.00 per month), server costs (€15.00 per month), Marketing expenses (€50.00

per month), Business insurance (€75.00 per month), salary compensation (€1,000.00

per month), and rent (€800.00 per month). Additionally, variable costs for cost of

goods sold (€220.00 in January) and shipment expenses (€50.00) incur. Furthermore,

HelMate will pay for its office supplies (€1,950.00 per year) as well as the payment

of suppliers (€4,500.00 in year one) in the beginning of the year. In total, HelMate

has a total amount of €7,867.30 of expenses in January and an ending amount of

€5,390.00 of liquid assets in the end of the first period.

In February, the company has a cash amount of €7,867.30 in the beginning of the

month. As we as a company have a 30-day payment policy, revenue of the month

will be received in the following month. This means that HelMate will receive a total

of €789.80 of sales revenue from January. As fixed costs will stay the same as men-

tioned for January, cost of goods sold will be €440.00. This leads to total liquid as-

sets at the end of February of €6,268.48.

As shown in the following months from March until June, HelMate’s total receipts

will increase as sales increases. As a result, the variable cost (cost of goods sold and

shipment expense) will increase, too, which leads to a decrease in total liquid assets

(lowest amount in October with €3,359.20 at the end of the period). This is also, be-

cause the company paid some of its fixed costs (office supplies and suppliers) in the

beginning of the year, which we now have to compensate for with the profit margin.

In general, HelMate’s liquid assets are constantly increasing up to €9,552.50 in De-

cember. In total, the company’s liquid assets at the end of year one will be €9,552.50.

For the end of year two, HelMate is going to make a loss of €1.591,90. This is the

result of high cost of goods sold and expenses that need to be covered in the start up

of our company.

39

In year three, however, HelMate is going to have total liquid assets of €38,700.10 at

the end of the year, which indicates that the company is going to make profits and,

hence, is able to cover its expenses.

In the end, the company’s liquidity budget shows clearly that HelMate will increase

its liquid assets at hand. Despite the loss in year two, HelMate is going to increase its

liquid assets, which states a vital business operation.

40

5.5 Ending balances

After 1 year of being in business, HelMate’s balance sheet looks as follows:

Fixed Assets Equity Capital

Equipement 2,000 Capital 18,050

Deposit 1,000 Retained earnings -798

Acc. Depreciation -600.00

Current Assets

Inventory 2,550

Prepaid Rent 800

Office supplies 1,950

Cash 9,552

Total 17,252 Total 17,252

HelMate’s total assets are now valued at €17,760 and consists of the following ac-

counts:

- Equipment: This account remains the same on all HelMate’s balance sheets,

as the price we paid for the equipment does not change. However, to record a

loss in value HelMate has depreciation accounts.

- Deposit: This account remains the same on all HelMate’s balance sheets, as

HelMate will only get the deposit back when HelMate no longer rents the of-

fice.

- Inventory: This account represents the products HelMate has ‘in stock’. This

account changes on each balance sheet, as HelMate sells products during the

year. The amount of this account is calculated as follows; Beginning Invento-

41

ry (2,550) – the amount of products sold during the year (1,190) = ending in-

ventory (1,360)

- Prepaid Rent: This account remains the same on all HelMate’s balance

sheets, as HelMate pays the rent one month in advance. This mean that there

is always a rent expense of €800

- Salaries: This account represents the salaries that need to be paid out to the

HelMate employees (4). Each employee gets a total of €250 per month, this

adds up to €1,000 a month in salaries. This means that there is a total of

€12,000 a year (€1,000*12 months).

- Accumulated Depreciation: This account represents the depreciation on the

equipment. It is a cumulative account, which means it adds up each year

(Acc. Depreciation year 2 = year 1 + year 2). To calculate the annual depreci-

ation on equipment, HelMate must choose a Depreciation method, a suitable

residual value and a depreciation period. The method HelMate chose is the

Straight-line method, which means that each year the same amount is depre-

ciated. For the residual value HelMate came to the amount of €200, this

means that at the end of the depreciation period the equipment will be worth

$200. The depreciation period will be 3 years. Now we can calculate the an-

nual depreciation. The starting value of the equipment is €2,000, the residual

value is $200, this means that within 3 years (depreciation period) the equip-

ment depreciates for €1,800 (2,000-200). The annual depreciation then equals

€1,800/3 = $600.

HelMate’s total Equity Capital is €4,400 and consists of the following:

- Equipment Expense: This account simply reports the expense of the equip-

ment

- Depreciation Expense: This account reports the expense of the depreciation

- Deposit Expense: This account reports the expense of the deposit

- Rent Expense: This account reports the expense for prepaid rent

HelMate’s total Current Liabilities is €13,360 and consists of the following:

- Suppliers: This account represents all the goods HelMate gets from external

suppliers. Inventory + Supplies

- Salaries Payable: This account reports that there are still salaries to be paid

out to the HelMate employees (for further details see ‘Salaries’ above)

42

After the second year in business, HelMate’s balance sheet looks as follows:

Fixed Assets Equity Capital Equipment 2,000 Capital 18,050 Deposit 1,000 Retained earnings -12,542 Acc. Depreciation -1,200 Current Assets Inventory 2,550 Prepaid Rent 800 Office supplies 1,950 Cash -1,592 Total 5,508 Total 5,508 HelMate’s total Assets are now valued at €5,508 and consist of the following:






fice.





ventory (3,560)







€12,000 a year (€1,000*12 months).

43









€200. The depreciation period will be 3 years. Now we can calculate the an-


value is €200, this means that within 3 years (depreciation period) the equip-


€1,800/3 = €600. Since this is the second year the depreciation = Deprecia-

tion year 1 + Depreciation year 2 => €600+€600=€1,200



ment









44

After the third year of business HelMate’s balance sheet looks as follows:

Ending Balance Sheet Year 3 Fixed Assets Equity Capital Equipment 2,000 Capital 18,050 Deposit 1,000 Retained earnings 25,200 Acc. Depreciation -1,800 Current Assets Inventory 2,550 Prepaid Rent 800 Cash 38,700 Total 43250 Total 43250 HelMate’s total Assets are now valued at €43,250 and consist of the following:






fice.





ventory (3,560)




- Accounts Receivable: This account represents the net profit from sales on ac-

count (for further information see profit and loss budget)



45


€12,000 a year (€1,000*12 months).









€200. The depreciation period will be 3 years. Now we can calculate the an-


value is $200, this means that within 3 years (depreciation period) the equip-


€1,800/3 = €600. Since this is the third year, the depreciation = Depreciation

year 1 + Depreciation year 2 + Depreciation year 3 =>

€600+€600+€600=€1,800


- Service Revenue: Net Profit.


ment









46

6 CONCLUSION

Through the above information, HelMate has provided all necessary information

what the company expects in terms of sales of our HelMate branded helmets. It is

shown, through our profit and loss summary, that in the first year we project to sell

872 standard bike helmets and 318 customized helmets. For the following two years,

we are expecting sales to increase, as more people get aware of the brand HelMate,

and relate this brand with safety and being fashionable for their children. These ex-

pected sales will then allow for us to continue producing more helmets per year with

increasing profits along the lines. Also included in the above document, you can see

what we can expect in the terms of costs through the first years of ownership. We

outline, in detail, where our funds will be distributed in terms of costs and how they

will help increase the value of our company as a whole. The approach and attitude

we have taken towards our young company and with wise monetary distribution have

allowed for us to foresee a profitable future from our company.

In the long planning of our start-up company, HelMate aims to invest retained earn-

ings into own production facilities to ensure our high quality standards as well as to

increase production possibilities. Furthermore, the development of new markets is

one of HelMates main goals for the next decade. As shown in the estimated figures

above, HelMate is very confident to be a successful company.

47

LIST OF REFERENCES

CIA World Factbook, (2012), Birth rate for the Netherlands, Retrieved from: http://www.indexmundi.com/g/g.aspx?v=25&c=nl&l=en

CIA World Factbook, (2012), Birth rate for Germany, Retrieved from: http://www.indexmundi.com/g/g.aspx?v=25&c=nl&l=en

Public transportation in the Netherlands http://www.washingtonpost.com/blogs/wonkblog/post/what-‐we-‐can-‐learn-‐from-‐germanpublic-‐transit/2011/12/04/gIQAfpqkSO_blog.html

Wirtschaftsrechnungen (2012), Anzahl der Fahrradgüter je 100 Haushalte, Retrieved from: Statistisches Bundesamt Wiesbaden, Germany

Mobilität in Deutschland (2008), Fahrradbestand nach Altersgruppen, Retrieved from: Bun-‐desministerium für Verkehr, Bau und Stadtentwicklung, Germany

Forschung kompakt (2014), Fahrradhelmnutzung nach Altersgruppen, Retrieved from: Bun-‐desanstalt für Straßenwesen, Germany

Fietsersbond, (2008), Fietsen in cijfers. [ONLINE] Retrieved from: http://www.fietsersbond.nl/de-‐feiten/fietsen-‐cijfers#1

Appendix I:

Figure 2: Birth Rate for the Netherlands.

Figure 3: Birth Rate for Germany.

Figure 4: Public Transport in the Netherlands.

Figure 5: Amount of Biked per 100 Households.

172

174

176

178

180

182

184

186

188

190

2003 2004 2005 2006 2007 2008 2009 2010 2011



0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 to 6 7 to 10 11 to 13 14 to 17 18 to 29 30 to 39 40 to 49 50 to 59 60 to 64 65 to 74 75 and older

Hund

reds

Bicycle owenership per age Bicycle owenership per age

Figure 6: Bicycle owner per age.

Figure 7: Helmet usage amongst children between 6 to 16

Figure 8: Gas prices in Germany and the Netherlands.

0

10

20

30

40

50

60

70

80

90

100

Percen

tage

Helmet usage amongst children between the ages 6 to 16

6 to 10

11 to 16

Figure 9: Bike rides per person per day.

Figure 10: Break-‐even Analysis

HelMate BP analysis

Standard Customized

Sales price per unit 29,99 39,99

Variable cost per unit 15 20

Contribution Margin 14,99 19,99

Sales mix in units 2 1 3

14,99 39,98 54,97

Weighted-‐average CM per unit 18,32333333

BP units 0 0

HelMate BP analysis

Figure 11: Break-‐even Analysis

Investment Budget

Fixed Assets

Equipement 2.000

Deposit 1.000

Total FA 3.000

Current Assets

Cash 14.250

Inventory 2.550

Office Supplies 1.950

Standard Customized

Sales price per unit 29,99 39,99

Variable cost per unit 15 20

Contribution Margin 14,99 19,99

Sales mix in units 2 1 3

14,99 39,98 54,97

Weighted-‐average CM per unit 18,32333333

BP units 133 50

Prepaid Rent 800

Total CA 19.550

Total 22.550

Figure 12: Investment Budget.

Figure 13: Opening Balance Sheet

Profit-and-loss budget Jan Feb Mar Apr May Jun

Gross profit

Turnover, sales standard 479,84 719,76 1.199,60 1.439,52 1.679,44 2.879,04

Turnover, sales special 219,96 439,92 549,90 879,84 1.319,76 1.759,68

Turnover Shipment 90,00 144,00 225,00 288,00 360,00 576,00

Total turnover, sales 789,80 1.303,68 1.974,50 2.607,36 3.359,20 5.214,72

COGS standard 160,00 240,00 400,00 480,00 560,00 106,00

COGS special 60,00 120,00 150,00 240,00 360,00 480,00

COGS Total 220,00 360,00 550,00 720,00 920,00 586,00

Packaging 100,00 160,00 250,00 320,00 400,00 640,00

Telephone 200,00 200,00 200,00 200,00 200,00 200,00

Server costs 15,00 15,00 15,00 15,00 15,00 15,00

Rent 800,00 800,00 800,00 800,00 800,00 800,00

Business insurance 75,00 75,00 75,00 75,00 75,00 75,00

Marketing 50,00 50,00 50,00 50,00 50,00 50,00

Salary (incl taxes) 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00

Depreciation 50,00 50,00 50,00 50,00 50,00 50,00

Office supplies 162,50 162,50 162,50 162,50 162,50 162,50

Shipment expense 50,00 80,00 125,00 160,00 200,00 320,00

Total Cost 2.722,50 2.952,50 3.277,50 3.552,50 3.872,50 3.898,50

Net profit before taxes -1.932,70 -1.648,82 -1.303,00 -945,14 -513,30 1.316,22

Jul Aug Sep Oct Nov Dec Total Year 1 Year 2 Year 3

3.358,88 3.358,88 2.879,04 1.679,44 2.879,04 3.598,80 26.151,28 29.990,00 38.987,00

2.199,60 2.639,52 1.759,68 1.319,76 1.759,68 2.639,52 17.486,82 21.996,00 82.485,00

684,00 720,00 576,00 360,00 576,00 756,00 5.355,00 8.100,00 12.600,00

6.242,48 6.718,40 5.214,72 3.359,20 5.214,72 6.994,32 48.993,10 51.986,00 121.472,00

1.120,00 1.120,00 960,00 560,00 960,00 1.200,00 7.866,00 10.000,00 19.500,00

600,00 720,00 480,00 360,00 480,00 720,00 4.770,00 12.000,00 15.000,00

1.720,00 1.840,00 1.440,00 920,00 1.440,00 1.920,00 12.636,00 22.000,00 34.500,00

760,00 800,00 640,00 400,00 640,00 840,00 5.950,00 9.000,00 14.000,00

200,00 200,00 200,00 200,00 200,00 200,00 2.400,00 2.400,00 2.400,00

15,00 15,00 15,00 15,00 15,00 15,00 180,00 180,00 180,00

800,00 800,00 800,00 800,00 800,00 800,00 9.600,00 9.600,00 9.600,00

75,00 75,00 75,00 75,00 75,00 75,00 900,00 900,00 900,00

50,00 50,00 50,00 50,00 50,00 50,00 600,00 600,00 600,00

1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 12.000,00 12.000,00 12.000,00

50,00 50,00 50,00 50,00 50,00 50,00 600,00 600,00 600,00

162,50 162,50 162,50 162,50 162,50 162,50 1.950,00 1.950,00 1.950,00

380,00 400,00 320,00 200,00 320,00 420,00 2.975,00 4.500,00 7.000,00

5.212,50 5.392,50 4.752,50 3.872,50 4.752,50 5.532,50 49.791,00 63.730,00 83.730,00

1.029,98 1.325,90 462,22 -513,30 462,22 1.461,82 -797,90 -11.744,00 37.742,00

Figure 14: Profit and loss Budget

Figure 15: Liquidity Budget

Fixed Assets Equity Capital

Equipement 2,000 Capital 18,050

Deposit 1,000 Retained earnings -798

Acc. Depreciation -600.00

Current Assets

Inventory 2,550

Prepaid Rent 800

Office supplies 1,950

Cash 9,552

Total 17,252 Total 17,252

Figure 16: Ending Balance Year 1

Fixed Assets Equity Capital Equipment 2,000 Capital 18,050 Deposit 1,000 Retained earnings -12,542 Acc. Depreciation -1,200 Current Assets Inventory 2,550 Prepaid Rent 800 Office supplies 1,950 Cash -1,592 Total 5,508 Total 5,508 Figure 17: Ending Balance Year 2

Ending Balance Sheet Year 3

Fixed Assets Equity Capital Equipment 2,000 Capital 18,050 Deposit 1,000 Retained earnings 25,200 Acc. Depreciation -1,800 Current Assets Inventory 2,550 Prepaid Rent 800 Cash 38,700 Total 43250 Total 43250 Figure 18: Ending Balance Year 3

business plan helmate_agler_engert_hammill_lowes (1)

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