start up business plan project report children assistants

HANOI UNIVERSITY OF SCIENCE AND TECHNOLOGY
School of Information and Communication Technology

Start-up Business Plan

PROJECT REPORT

Children Assistants

Instructor

MSc. Le Tan Hung
MSc. Le Duc Trung

Students

2011 2017 – Ngô Xuân Quý
2011 1648 – Đỗ Trọng Huy
2011 1768 – Tạ Thanh Lương
2011 1352 – Trần Vũ Duy
2011 2157– Vũ Văn Tùng
2010 2512 – Vương Mạnh Tùng


Contents

2


1.

Executive Summary
a. Company Profile Summary
We are Children Assistants. We provide solutions for the development of children under 10 years
old through by toys connected to fastest and most efficiency Management System.
We start up with 6 ICT students: Vương Mạnh Tùng, Vũ Văn Tùng, Trần Vũ Duy, Ngô Xuân Quý,
Trần Trọng Huy, Tạ Thanh Lương, from Hanoi University of Science and Technology (HUST).

b. Market Research Summary
As you know, children are always the future generation of the original and national growth. So,
undeniably, they has become the most cared people in the society. In addition, the first times of
human life is the most incredible period to broaden knowledge and develop personalities. By
bringing better living standard, we directly make a decision about beautiful future for our children.
However, in Vietnam as well as eastern countries, in term of tradition, the age of under 10 years
need to focus more on physical growth than that of mental and characteristics.

c. Marketing Summary
Nowadays, Vietnamese families need products having two functions as entertainment and
education. It would be a toy which will get data through by children’s activities and then summarize
statistics, giving their parents some advices about suitable solutions to motivate better growth in
both physical and mental.

d. Finance Summary
The main revenue come from selling intelligent products like children toys with the range of price
between 50 -150$.
First Year projections are targeted for 20,000 - 25,000 $.
By Year two, sales are projected to double to 50,000 - 65,000 $ with expenses just under
$13,200.

2.

Product and service
Children Assistants provide three services and products including:
1. “Monterssori” teaching devices: It helps children practice related to lessons which directly develop

children’s sensors and characteristics.
2. Coures: provide parents understand and know How to teach children
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3. Reports: After finishing courses, parents use them to judge children

3.

Market Research
a. Industry Profile & Outlook
Nowadays, toys market moves to a strong transformation. In the past, the majority of
Vietnamese products were imported from China, approximately 90%, and now this figure
decrease significantly. However, it is hard to compare the satisfaction of market on Chinese
products than others because of lacking of diversity, creativity and even outdated design. In
the addition, the limitation of insurance leads to non-synchronized production with the prices
being always higher than 15% that in Chinese with same design.
It is fact that all Chinese products are made from plastic and rubber, affecting directly
children health, which leads to psychological concerns. This has become an great opportunity
for local businesses for creating new security toys such as wood.
And, after a long time analyzing local market, we has developed a high applicability
toys made from wood, safe material.

b. Local Market
The initial focus will be in providing courses about using products and lessons related to
develop children in both physical and mental.

c. Key Competitors / SWOT Analysis
• Other companies

Strengths –
o

Big trademark

o

Stable input and output market

Weaknesses –
o

Limitation education application in toys

Opportunities –
o

Develop a new product to adapt market

Threats –
o

Lacking of information from customer take time and price to satisfy with market demand.

4

• Children Assistants

Strengths –
o

Friendly products with variety of design with colourful and safety

o

Non-poisonous – Made by Wood

o

Non-profit sophisticated software to management

o

Mental development

o

Provide new teaching methods for parents

o

Interaction between the production and the customer

Weaknesses –
o

Can be perceived as too niche

o

A new product with very little history

o

Take time to create market belief

Opportunities –
o

Providing new teaching method in schools

o

E-commerce is still new market

Threats –
o

Outdated statistics

o

Risks from online business

d. Target Market

Young parents have children under 10 years old in modern urban.

e. Keys to Success

4.

•

To develop an extensive online lessons for parents new teaching methods.

•

Always listen and change to adapt market demand

•

Idea is key success

Sales & Marketing
a. Pricing Strategy
5


The main revenue come from selling intelligent products like children toys with the range of
price between 50 -150$ or services allow customers to trial using products before making decision to
buy in 1 month.
Besides special service only provide for children schools with encourage price by 70% original
one.
First Year projections are targeted for 20,000 - 25,000 $.
By Year two, sales are projected to double to 50,000 - 65,000 $ with expenses just under

$13,200.

b. Marketing Strategy
Children Assistants is committed to building a new teaching methods, advance, friendly and
efficiency through by diversified toys.
Our Slogan “

c.

Always Be Children’s Friend”

Primary Marketing Activity

Starting to attendant into Vietnamese Market. Steps include:

1. Using the strength of social network such as Facebook, Zalo, some family forum like Webtretho

advertises products.
2. Develop a unique website in order to introduce products as well as provide necessary tutorial

lesson through by visual aids like videos and images.
3. Make a friendly relationship with kid gardens or supermarkets by trial uses. .
4. Create conference about children development applying high-technology toy
5. Build store chain in local modern urban before developing the business net to rural

5.

Operations
a. Location(s)
• Focus on big economy center like Ha Noi, Tp. Ho Chi Minh, Da Nang

• After 2-3 years, develop in others.

b. Website description
Website registers domainname. It is online commercial as well as provide information
about teaching courses for parents
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Website will focus on three main functions:
1.

Online store with showing all products with tutorial. They will be divided into different
purpose about language, age and gender.

2.

Teaching courses provide free for customers. They are also divided into different
demand about age from 0 to 6 years old
The content about
i.

Tutorial by images + video

ii.
3.

Introduction about education method“monterssori”

Summary about the development period through by getting statistic from our products
sold for customers

c. Website development
Website will be developed by high level engineers and have great bandwidth –
withstand approximately thousands connection.
•

Informative: Every information about products will be shown when clicking
each product such as name, name company, material, color, price, suitable
age and especially appear in 3-D image.

•

Security: All trade secure under best online security. In addition, we accept
variety of payment solution including cash and card. We commit shortest
time to deliver products in 1-2 days before paying and re-pay after judging 3
days. All products have 3-6 months insurance.

d. Legal Issues
Children Assistants anticipates the following legal issues:
•

Business licenses

•

Intellectual property (i.e. patents, trademarks and copyright)

•

Contract agreements (partnerships, independent contractors etc.)

Children Assistants is automatically protected by copyright but no patent is being pursued as the
layout and simplicity in the process is what makes the software so effective.

e. Insurance Issues
•

Every trade has pay-bill

•

All products have been written original and insurance.

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f. Human Resources

6.



Children Assistants will have 5 - 10 full time staff.



Children Assistants will have 0 part time staff.



Children Assistants subcontracts work to Hoa Phat for product development and
Protecting Customer Academy to test the product as well as Children Development Center
to analyze statistics. All have extensive experience in their respective fields. They will be
called upon on as needed basis in the future but not as employees but as subcontractors.
This will help keep costs down in the initial stages.

Process/Production
The intelligent toys not only provide high-design product for market but also bring new
education solution for children. We divide into four main group:

7.

8.

•

Language: Focus on thinking language such as the alphabet and number. They will be
suitable with 2-5 years old children.

•

Sensory: Focus on developing abilities related 5 senses of human. They will be suitable
with under 3 years old children.

•

Math: Focus on thinking logic and predict as well as learn some simple mathematics as
add, sub, multiply and divide. They will be suitable with over 3 years old children.

•

Experience: Focus on broadening knowledge about natural thing like animal and plant.
They will be suitable over 1 year old children.

Risk Assessment
•

Not enough initial cost to develop products

•

Sensitive market about new products

•

Risks from online commercial

•

Mistakes in production

Financials
a. Start-Up Costs
The example business plans do not include start-up costs, cash flow or income statement
example content.

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b. Sales Forecast

Key Assumptions for Children Assistants
•

The product of each price is from $5 to 50$

•

Discount 5% for orders > 100 $ , free SIP in whole nation ;

•

First Year projections are targeted for 20,000 - 25,000 $.

•

By Year two, sales are projected to double to 50,000 - 65,000 $ with expenses just
under $13,200.

Year One Sales Forecast (Including Assumptions)
Month 1 – 3500$
-

Register website host ,domain , design website to introduce about company and
productions : 1000$

-

Produce sample toys to evaluate quality and mode of products : 2000$

-

Advertising campaign : 500$

Month 2 - 6000 $
-

Start producing more woody toys , base on marketing trend : 4000 $

-

Hire employee : 2000$

-

Website maintain : 100$

Month 3 - $10000
-

Series productions are produced

-

Sale to market various toys

-

Support products for garden children , supermarket

Year Two Sales Forecast

Base on finance situation and profit from One year , company will have reasonable policies

c. Cash flow
d. Income Statement

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