A multi- media business plan blog for the Amni-Nik®
Tuesday, July 28, 2015
Investing $$
Hi Judith this post is for you.
It is hard for me to know what you are thinking as far as an investment. 10k, 20k, 50k or were you thinking 500 or $1000 ?
From my perspective 20k is probably a fair amount for 2 or 3% of the company.
That basically means I think this is a million dollar idea, but as you can see from the rest of the blog , this is more then an "idea".
The basic flow of any invention is:
Idea
engineering
patent
more engineering
regulatory (FDA)
working prototype
clinical test of prototype
more engineering for mass manufacturing
sales
distribution
marketing
sales----this is where one hopes payback and renewing sales start to pay for future manufacturing, pay back original investment and beginning to pay a profit.
While the figures below are rough they are within range and conservative.
We are at mass manufacturing right now and this is an expensive phase
1) the mold $9000
2) unit price is 12 cents but minimum order is 40k units $4,800
3) sterile packing and validation, we are waiting for final price on this and expect .35 cents per unit $14,000
So we are at almost 30k to get 40k units this is a slim margin if we are wholesaling around 1$, here is where volume counts because in future the cost of the mold is not calculated . Or said another way the larger the first order the lower the per unit.
Then we have marketing costs , this means going to conferences and they are easily 6k a pop with travel, hotel and sample give a ways/ swag.
So let's say we need 50k to get through this phase to get to sales, we have 5k in the bank, hope to raise 5k by crowd funding and either an investor will come along or we will take a loan.
I figure I have into early October to raise all of it because even when we pay half the cost of the mold it takes a while for them to cut it.
So lets say when we get up to speed and we sell 500,000 devices in a year, they cost .50 cents (the cost is likely to go down at that volume) to make and we sell for $1 wholesale we have 250,000 profit (minus additional expenses)- of course we have to make 500,000 more, but eventually we are going to get ahead of it - increase the profit through reduced manufacturing costs.
The full market share is 1.5-2.5 mil,
It is hard for me to know what you are thinking as far as an investment. 10k, 20k, 50k or were you thinking 500 or $1000 ?
From my perspective 20k is probably a fair amount for 2 or 3% of the company.
That basically means I think this is a million dollar idea, but as you can see from the rest of the blog , this is more then an "idea".
The basic flow of any invention is:
Idea
engineering
patent
more engineering
regulatory (FDA)
working prototype
clinical test of prototype
more engineering for mass manufacturing
sales
distribution
marketing
sales----this is where one hopes payback and renewing sales start to pay for future manufacturing, pay back original investment and beginning to pay a profit.
While the figures below are rough they are within range and conservative.
We are at mass manufacturing right now and this is an expensive phase
1) the mold $9000
2) unit price is 12 cents but minimum order is 40k units $4,800
3) sterile packing and validation, we are waiting for final price on this and expect .35 cents per unit $14,000
So we are at almost 30k to get 40k units this is a slim margin if we are wholesaling around 1$, here is where volume counts because in future the cost of the mold is not calculated . Or said another way the larger the first order the lower the per unit.
Then we have marketing costs , this means going to conferences and they are easily 6k a pop with travel, hotel and sample give a ways/ swag.
So let's say we need 50k to get through this phase to get to sales, we have 5k in the bank, hope to raise 5k by crowd funding and either an investor will come along or we will take a loan.
I figure I have into early October to raise all of it because even when we pay half the cost of the mold it takes a while for them to cut it.
So lets say when we get up to speed and we sell 500,000 devices in a year, they cost .50 cents (the cost is likely to go down at that volume) to make and we sell for $1 wholesale we have 250,000 profit (minus additional expenses)- of course we have to make 500,000 more, but eventually we are going to get ahead of it - increase the profit through reduced manufacturing costs.
The full market share is 1.5-2.5 mil,
Sunday, July 19, 2015
Launch of crowd funding
We launched the crowd funding on my birthday 7/16/2015
Initial reception was very heartening
now the hardwork of ....getting it ready for mass market
Oh and we incorporated as BirthTec in NY as the MaryGold llc in DE name seemed to be holding us back.
Since the last post we have gathered positive feedback and data on efficacy and safety.
We have sent the drawings for final engineering with a manufacturing partner
We have tested and finalized for mold making
We have gotten confirmation that the name Amni-nik® is a registered trademark
WE have begun the R&D on another product that will safely address one of the most feared complications in childbirth.
Initial reception was very heartening
now the hardwork of ....getting it ready for mass market
Oh and we incorporated as BirthTec in NY as the MaryGold llc in DE name seemed to be holding us back.
Since the last post we have gathered positive feedback and data on efficacy and safety.
We have sent the drawings for final engineering with a manufacturing partner
We have tested and finalized for mold making
We have gotten confirmation that the name Amni-nik® is a registered trademark
WE have begun the R&D on another product that will safely address one of the most feared complications in childbirth.
Tuesday, February 10, 2015
Birthday!
Feb 10 is the birthday of Amni-nik because it is the date in 2014 that the patent application was first filed, and the date in 2015 we got our first result from a user. The device worked and they loved it!
Saturday, January 31, 2015
Twice as long...
I posted Nov 4 that the prototype was ready.... and I had the devices to ship out to clinical sites January 15th. It seems on one hand ridiculously long and yet the patent was filed Feb 10 last year, so less then one year from idea to prototype is not bad. The good news is that ....it might have taken longer. Now the last day of Jan and as far as I know it has not been used yet. More waiting.
Last week I wrote to see if everyone had sterilized the device and gotten it ready to use. I got the following encouraging responses below:
I really like the design and I think it's going to be so much better than the amni hook and the amni cot....I am thrilled to have this new tool and will certainly try it as soon as I feel the need for AROM.
Last week I wrote to see if everyone had sterilized the device and gotten it ready to use. I got the following encouraging responses below:
I really like the design and I think it's going to be so much better than the amni hook and the amni cot....I am thrilled to have this new tool and will certainly try it as soon as I feel the need for AROM.
Heidi
It looks very good. I think you'll be very successful with this!!
Yetty,
Yetty,
Others commented that it was prepared for use. I am encouraged that no one looked at it and said...oh no way.
Tuesday, November 4, 2014
Proof of Concept
Finally The Working Prototype....wow almost one full year of iterations to get here.
I can finally make a plan with clinical sites to test it and prove it works, or not!
The slightly more complex iteration that I asked another shop to make seems to be on hold. Initially they seemed very excited about partnering but balked at the "market potential" question. It is certainly not a huge market and Oregon just outlawed medically unnecessary inductions.
Yet still over 2 million inductions are performed each year, as well as countless augmentations.
Inch by inch we make progress.
I can finally make a plan with clinical sites to test it and prove it works, or not!
The slightly more complex iteration that I asked another shop to make seems to be on hold. Initially they seemed very excited about partnering but balked at the "market potential" question. It is certainly not a huge market and Oregon just outlawed medically unnecessary inductions.
Yet still over 2 million inductions are performed each year, as well as countless augmentations.
Inch by inch we make progress.
Saturday, October 18, 2014
Where we are now
The Amni-Nik® is a class one medical device.
The Amni-Nik® does not need a formal 'clinical trial'. However we do need to 'prove' the concept and get some useable prototypes into the hands of first users and that is the stage we are at now. We have decided the best way is to make surgical grade stainless Amni-Nik®'s that can be autoclaved. We are excited to see how the Amni-Nik works in the hands of a variety of practitioners in various settings.Our data collection system is in place and we are in contact with clinical sites.
This medical illustration has been very helpful. It inspired the multi-media format of the business plan.This and our logo was done by www.bajemastudios.com
The Amni-Nik® does not need a formal 'clinical trial'. However we do need to 'prove' the concept and get some useable prototypes into the hands of first users and that is the stage we are at now. We have decided the best way is to make surgical grade stainless Amni-Nik®'s that can be autoclaved. We are excited to see how the Amni-Nik works in the hands of a variety of practitioners in various settings.Our data collection system is in place and we are in contact with clinical sites.
Subscribe to:
Comments (Atom)