O-Innovation Energy Inc. (O-INNO) invented a reliable car battery booster unit (O-Booster V.1) which is able to keep its charge for more than 5 years. O-INNO has been found around this business idea and has performed a comprehensive market research to understand the needs and potentials of North American auto-parts industry.
The booster units will be manufactured abroad and shipped to Canada for assembly and packaging. The units will be sold starting with 39.99$ and continuing in the third year by 35$ and eventually 30$.
This project will provide job opportunities for 8-10 individuals.
O-INNO’s shareholders have decided to proceed to the production step to gather 506,000$ (66,000$ shareholders’ investment + seeking 440,000$ financial support) in order to produce the total of 30,050 units in the following next two years of its operation start.
506,000$ is required for the following steps during start-up and production:
- Startup & Inventory: 217,000$
- Working Capital: 289,000$
Expenses before break-even is 352,000$ (detailed study is available). These include salaries and wages ($245,500), BDC loan payback ($44,000), Advertising and promotion ($32,000), Commercial Rent ($39,000) and other expenses ($36,000) which will be covered by shareholders ($66,000), 440,000$ financial support and sales of 5550 units. After the break-even point, sales will cover all expenses and by the end of second year, the cumulative cash flow will be $113,000. The gross margin of the second year will be 689,000$.