Projected Balance Sheet
Behind the Estimate
To estimate our growth, we compared our key-ring to Doorbot. Doorbot is the original company before they rebranded to Ring, whose most popular product is their security camera equipped doorbell. We recognize that our products are not completely the same, there are few in our exact niche. Instead, we are comparing based on the fact that Doorbot also focuses on security and doors. They were recently bought by Amazon for over a billion dollars.
Cash Flow Statement & Cash Flow Projections
Projected Income Statement
Maximum Likelihood Growth
When Doorbot launched in 2013, they had $364,000 in funding, which was used mainly to manufacture the product. However, since KeyRing is a much cheaper product to produce, and with high margins, our growth should be similar even without as much funding. Doorbot sold 20,000 units in their first year. Unlike Doorbot, our first year involves the creation process while selling. Thus we decided to think of our second year as if it was Doorbots first year because by our second year, we will also have an efficient manufacturing process. So if we invest our profits into injection molding, we can produce mass orders and exponentially increase our units sold to approximately 20,000 units which is a 400% increase.
10% > ML Growth
Doorbot went onto Shark Tank looking for a $700,000 investment. Although they came back with no offers, the episode alone generated approximately $5 million in sales because everyday consumers realized they wanted the product. We have currently seen success in word of mouth, with many of our customers coming to us after a referral from a previous customer. Therefore, if we can fulfill orders for an organization (B2B instead of just B2C) , the success of producing for an entire educational institution would act as a fantastic marketing opportunity. For example, families living in keycard-accessible apartments may be interested in the product after seeing their child with it.
10% < ML Growth
Shark Tank has a massive reach and was a main factor in Doorbots sudden jump in success. Since we rely more on word of mouth marketing VS something like Shark Tank, we also risk taking a hit if users warn others that we may be a scam. This is possible because we will not have much funding for research and development of our product, which can make our products faulty even if we have enough money to manufacture them. We may be able to prevent this via good customer support and a return policy.