240 | HOW TO WRITE A BUSINESS PLAN
-11-G. Company Facilities
DAY INTERNATIONAL, INC., presently occupies a leased facility of slightly over
1,800 square feet at a very reasonable rental. We use this for both manufacturing
and offices. We rent an additional 150 square feet of storage space nearby. There is
no concern for the continuation of the lease on our principal location, as it contains
three yearly options to renew at the same rate, plus a percentage increase equal to the
yearly increase in the consumer price index. The existing space is adequate to support
production of at least 400 Kinet-O-Scrolls per month. Nearby space is available for
expansion at reasonable rates when we need it. An adequate work force of assembly
workers and shipping room personnel is available.
Several additions to the corporation’s existing manufacturing equipment are
required. Assuming, however, that the Kinet-O-Scroll production rate does not exceed
400 units per month, these expenditures will not exceed $30,000. When production
increases above 400 units per month, we expect to show enough profit that a bank loan
to finance more equipment will be easy to obtain. We can supply a potential investor
with more details about these estimates upon request.H. Product Development Status
Phillip Court began development work based on the Smith Patent in 2007. The idea was
to develop operational prototypes of both the Kinet-O-Scroll and Kinet-O-Scope to
prove manufacturing feasibility. After design and operation of several early prototypes
of each product, a full set of engineering drawing and parts specifications was prepared
for each in 2008. Parts were procured from suppliers and a number of units assembled.
Next, units manufactured and assembled were subjected to life testing. With some
minor modifications, an operational life of up to 4,488 hours without failure was
achieved for the Kinet-O-Scope. This compares to an expected typical homeowner’s
usage of 1,000 to 2,000 hours. We are confident from these results that with some
minor material changes, which are now in the works, and the introduction of improved
mechanical alignment techniques, which we plan to do soon, a 10,000-hour design goal
is achievable. This is our goal.