232 | HOW TO WRITE A BUSINESS PLAN
A. Introduction
After several years of development work, DAY INTERNATIONAL, INC., is ready
to market two unique electronic devices, both of which use the same patented
new technology. This technology utilizes computerized optic displays to create
a programmable message. In commercial application, this is valuable in creating
commercial signs and displays that use a scrolling technique to attract and inform
customers. As a recreational product, computerized optical displays using this
technology can be made to respond directly to music and voice patterns. In other
words, full-color visual displays result from sound. This product application is
particularly attractive to young people.
Extensive market research suggests a large market for both the commercial
(Kinet-O-Scroll) and the recreational (Kinet-O-Scope) applications of this product.
The commercial programmable sign market already exceeds one million dollars in
the United States and is sure to grow quickly. Many units are purchased by retailers
for what amounts to instant in-store advertising. In this application, the retailer can
program a sign with information on that day’s specials, and presto, he has created
his own attractive electronic display. The product, which is described more fully in
the accompanying Product Description (Section E, below), has several features not
now commercially available, including a wide choice of type styles. It will also have a
substantial price advantage over other products now on the market. The consumer
recreational market for this product is not fully tested, but there are a number of
exciting potential uses (see Section E, Product Description).
DAY INTERNATIONAL, INC., is incorporated under the laws of the state of California
and is ready to begin operations. The founders have spent several years of hard work
preparing for this time and have made substantial personal investments. They are eager
to proceed. However, because their personal financial resources are not adequate to
manufacture and distribute sufficient units, they are prepared to offer a one-third
share of the corporation for an equity investment of $75,000. The enclosed financial
projections demonstrate that if projections are met, there will be a very profitable
return for the investor.-3-