ChangeSymptum Cycles

Business Plan:Mitch AngusVladimir Borisov

Overview

Overview•Industry

•Insight

•Market

•Competition

•Operations

•Financing

The Beginning to an End of an AgeUnreliability

Industry

IndustryDivision DMajor Group 37: Transportation Equipment Industry Group 375: Motorcycles, Bicycles, And Parts 3751 Motorcycles, Bicycles, and Parts

The Problem

The ProblemA traditional external system relies on:•User set-up•Maintenance•Compatibility and quality of parts

The chance of a standard gear system shifting correctly is 26%

External gear systems are prone to the elements

Drive System

The Symptum Solution

A standardized Drive System •That will reduce the overall weight•Offer a shift reliability better than the standard 26%•Will be significantly less expensive to manufacture

Symptum’s internal drive system is more efficient then anything out there today on the market.

Uniqueness

Unique Value Proposition•New standard in mountain biking•A more durable, reliable and cost effective product•Ease of rebuilding and modifying •No gears will be required for shifting.•Will use a variable system. •Symptum will pre-select 27 gear ratios to be shifted by a rapid shift mechanism.•Ability to offer an infinite amount of gear ratios within its range. •Creates a more balanced bike distributing the weight towards the center of the bike.

The Standard

Standard External Gear SystemA standard gear systems chances of shifting correctly is less than half than that of an internal gear system. Requires constant maintenance. Exposed to the elements.

•Over time major wear will occur.

•Possibility of potentially damaging beyond repair.

•Gear selection is severely reduced.

The Proposed Design

Variable sheave pulleys are widely used mechanisms in many industrial settings and CVTs.

• Shifting

• Belt slippage

• Size

Shortcomings of existing designs

Market Summary

• 6 Billion Dollar Industry in the US.

• Bike Industry is growing at a rate of 6.4%.

• Headquarters will be located in Portland, Oregon.

• Portland regularly ranks at the top of Bicycling Magazine’s list of the best cycling cities.

• Portland’s bicycle-related industry was worth $60 million in 2007.

• Nation’s highest % of workers who commute by bike, about 3.5%.

• The market is increasing yet stable and will continue to thrive with popularity in the sport starting to increase.

Target Market

Target Market• Active, passionate bike riders ages 15-50

• Aggressive, active and entertaining lifestyle while seeking high quality of perfection and reliability.

• Discretionary income

Marketing & Sales

Marketing Technique•Word of mouth & viral marketing will play a large role in Symptum’s business.

•Sponsoring events & promoting products at conventions.

•A team vehicle that shows up to local events.

•A team of sponsored riders to ride Symptum bikes at events and hand out advertising products.

Competition

CompetitionThe bicycle industry is divided into 4

different distribution channels.

I. Specialty 49% II. Full Line 8%

III. Other 6% IV. Mass Merchants 37%

NicheHaving a standardized internal drive system will set us apart from the competition.

OperationsOperations

Where the Money Comes FromMoney to Start

• 3 Initial investments• March $111,000• July 160,000• February 150,000

Product

• Manufacture and sell and line of race specific mountain bikes with an integrated variable drive system.

• Local bike retailers can purchase at a premium.

• Customers can purchase from authorized retailers.

Questions

QuestionsQuestions