I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a brand new medical device designer and manufacturer, established in 2022 as a C corporation by two college friends. The friends, [Founder’s Name] and [Founder’s Name], developed a cutting edge device during graduate school that has since been improved and FDA approved.
This technology helps solve medication compliance challenges observed and experienced by [Founder’s Name] and [Founder’s Name]. It works by automating the dispensing and refill of medications, as well as providing automatic reminders when it is time for a dose. The device will be available in three versions, intended for the consumer, elder care, and travel markets. Products are customized to meet the needs of each of the three markets.
Helping patients with medication compliance is the bottom line goal of [Founder’s Name] and [Founder’s Name] at [Company Name].
Products Offered
[Company Name] produces three versions of its medication dispenser. These devices have various features specific to their respective markets, and all dispensers feature smart connections. These devices have been approved by the U.S. Food and Drug Administration.
Customer Focus
[Company Name] serves consumers of all ages. The demographics of current and potential clients and customers of our clients are as follows:
- 131 million people in the U.S. use prescription drugs
- 53% of all Americans aged 18 to 34
- 62% of those aged 35 to 49
- 75% of those aged 50 to 64
- 87% of those aged 65 to 79
- 91% of Americans aged 80 or older
[Company Name] recently entered into a contract to supply a 25-location regional pharmacy chain.
Management Team
[Founder’s Name] and [Founder’s Name] comprise the management team of [Company Name], and are in the process of securing additional management and staff personnel.
[Founder’s Name] holds a graduate degree from Florida State University in engineering. She is the CEO of the C corporation and her primary occupation is to present the vision of [Company Name], while encouraging major corporate relationships with retail pharmacies across the United States. She is a former regional sales manager for a major medical device corporation, with a track record of 10 years in that role, garnering over 25M in sales.
[Founder’s Name] holds an MBA degree from University of Alabama, with a focus on corporate strategic management. He is a former sales representative for a major medical device corporation, with a track record of 15 years in that role, garnering over 20M in sales.
Success Factors
[Company Name] is positioned in several ways to become a well-established corporation for the following reasons:
- Founders are highly-experienced in the medical device industry
- Founders have a contract to supply 25 retail pharmacies, which have a combined total of more than 100K customers
- Founders have patented these medical devices
- [Company Name] has a track record of continuous improvement to the original product, as technology progresses
- Founders have staff with experience in medical device manufacturing
Financial Highlights
[Company Name] is currently seeking $430,000 to launch. Specifically, these funds will be used to build on property, pay salaries, market services, and pay for research and development, including prototyping and concept modeling, as follows:
- Manufacturing center design/build: $150,000
- Working capital: $120,000 to pay for salaries, and overhead costs until [Company Name] reaches break-even
- Concept modeling, prototyping, and CAD-drawn sampling: $80,000
- Patenting and Trademarking: $50,000
- Marketing, advertising, customer presentations: $30,000
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
