Business Plan

Dustin Duerr, Rob Westerlund, Jake Bredemus

Agenda
 Business Introduction
 Overview of Market / Industry / Competition
 Strategic Positioning & Risk Assessment
 Marketing Plan
 Operations & Technology Plan
 Management & Organization
 Short-Term & Long-Term Goals
 Financials
 Exit Plan
 Questions
Business Introduction
Overview of Market

 Halo Technologies, chosen to reflect the halo of

protection our customers will enjoy
 We will protect our brand by trademarking the
trade name “Halo Technologies” on both a state
and national level.
- Halo Technologies
- HaloTech
- HaloShield
- HaloKey and HaloLock
Business Introduction

Mission Statement

Halo Technologies’ mission is to provide peace of mind,

confidence and security to individuals and organizations by
empowering our customers with the ability to locate and
track unique and valuable possessions and to monitor the
location of loved ones.
Business Introduction
Form of Business
 Halo Technologies will form as a Limited Liability
Corporation
 The advantages this corporate structure offer…
 Limiting personal liability
 Avoiding double taxation
 Streamlined administrative requirements
 Flexibility in sharing profits

 The Officers of this LLC would be Rob Westerlund as

President, Dustin Duerr as Vice-President/Corporate
Secretary, and Jake Bredemus as Treasurer.
Business Introduction

Products and Services

 More than just a tracking device or a slick new app.
 We provide a comprehensive system of tracking the
location and history of any device purchased by a
consumer and properly operated.
- HaloTech
- HaloShield
- HaloKey
- HaloLock
Business Introduction

Location and Geographical Information

 Halo Technologies will be created in the state of
Minnesota and at the time of start-up will be housed in
the Bonestroo Building in Roseville, Minnesota.
 Our initial location of operations will be in the Twin
Cities area with a focus on our market through the Best
Buy stores.
Overview of Industry
Demographics/Geographics
 Our major demographic is a subset of the smartphone
market
 Business Insider stated the following statistics:
 Comscore says 114 million Americans used smartphones in
July, 2012
 Flurry reports that there are at least 165 million active
Android and Apple iOS devices in the U.S. and that they
are used by 78% of the adult population (age 15-64).
 The vast majority of the primary smartphone market, U.S.
adults between 18-54, already have smartphones.

Overview of Industry

Demographics/Geographics

The demographic of our customers

 Male or female

 Age18-45,

 Who has at least one child

 Household income $75,000 to $150,000 a year

 Owns a smartphone.

 Urban, suburban, and ex-urban users.

Overview of Industry
Lifestyle and Psychographics
 Female or male
 Embraces new technology,
 Readily uses social media and smartphones
 Enjoys using technology to keep in touch with friends, family, and
the whereabouts of their family and possessions
 Access their news information online
 Shop online
 Early adopters who like to try out new technology,
 Recognize its value earlier than others
 Share their findings online with those within their social circle
 Trend-setting, socially responsible, security-minded, and insightful.
Overview of Industry

Purchasing Patterns
 First buy our products due to the loss of a valuable
possession or temporary loss of a child or elderly adult.
 They will pass along their findings to those in their
immediate network of friends and social contacts.
 Over the next five years they will buy other products from
us between five to ten times
 Our customers will first see our products in major retail
outlets, later finding links to our website online through email
banners, and will predominately buy our products online.
 Utilize smartphones in order to track those transmitters’
signals.
Overview of Industry

Buying Sensitivities
 Our average customer is not as sensitive to price as they are
to quality.
 Product works extremely well in serving its intended purpose
 When tracking children, parents will be much less concerned
with the price than they are with its feature of being able to
see the location of their children when they are out of their
field of vision.
 Most sensitive to is Quality, Product Features, Reliability, and
Customer Service.
 Less sensitive to is Brand Name, Packaging, Store Location and
Store Décor, and a Maintenance Program.
Overview of Industry

Market Size and Trends

 The market size of our tracking devices is a large

subset of all American smartphone users
 140 million smartphone users in the United States with
that number growing every year
Overview of Industry
Competition
The Competition

Personal Locator Device(s), an industry projected to grow to over $22 billion

dollars within the next five years.

 iTrack,
 Wherify
 uLocate, and LoJack
 GTX Corp
 Connexion2

Halo Technologies' Personal Locator Devices (PLDs) are smaller and more
easily concealed, less expensive, uniquely programmable for individual
needs, and more user-friendly than our competitors' products.
SWOT Analysis

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Strategic Positioning

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Marketing Plan

Company’s Message

HaloTech’s customer can find peace of mind by using our

products. Whether they are using our products to find a
lost purse or car or tracking the location of a child or
elderly parent, they can know that they now have been
empowered to identify the location of something or
someone they otherwise would not be able to. We are
not just selling tracking devices. We are selling peace of
mind.
Marketing Plan

Marketing Strategy

 Strategic Partner - Best Buy Corporation

 Initial release in the Twin Cities area to test the
viability of selling our product on the national stage.
 HaloTech website to inform our customers of how our
products work, what different ways they can use them,
and to provide customer support.
Marketing Plan

Strategic Partnerships

Best Buy - developed relationships with our target market.

 a broad base of contacts with our market

 868 stores nationwide

 Growing focus on smartphones and accessories

 This partnership would be cultivated within the context of

the Twin Cities in order to test our product, marketing plan,
and market, with an eye towards expansion upon reaching
our primary goals of sales and revenue.
Operations

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Operations

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Operations

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Operations

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Technology Plan

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Technology Plan

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Short-Term Plans

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Long-Term Plans

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Organization

President
Rob Westerlund

V.P. Production V.P. Finance V.P. Sales V.P. Marketing V.P. HR V.P. R & D V.P. I.T.
Dustin Duerr Jake Bredemus Rob Westerlund Rob Westerlund Dustin Duerr Dustin Duerr Dustin Duerr

Director of
Plant Manager Sales Manager
Finance

Customer
Sales Force
Service
Organization

President – Rob Westerlund

 25 years of experience in management, creative/critical
thinking.
 NBC studios in Burbank in Management Training
 The Walt Disney Company and The Disney Channel
 Provided leadership and pastored at churches in Twin
Cities
 Manager at Anthem College
 College instructor at several colleges in the Twin Cities
Organization

Vice-President of Finance – Jake Bredemus

 3M
 United Health Care
 Responsible for raising capital for our production
operations, coordinating financial matters for corporate
finances, for sales and invoicing, and for future growth
for the organization.
Organization

Vice-President of Operations – Dustin Duerr

 Dustin’s ten years of experience of managing a large

work force and running a major corporate branch
 Rainbow Foods Branch Manager
 Direct the day to day operations involving Human
Resources, Production, R & D, and IT.
Financials
 Sales & Revenue Forecast

 Costs of Goods Sold

 SG&A Expenses

 Financing Needs

 Profitability (Income Statement)

 Cash Flows & Break Even

Financials

 Unit Sales Forecast

 Staged regional integration
 Estimating 25 units sold per store

 13.6% sales growth per year (GPS.Gov, 2013)

Financials

 Pricing
 Halo Key (GPS) :
 Retail Price $175
 Best Buy Purchase Price: $87.50

 Halo Lock (Blue Tooth):

 Retail Price $80
 Best Buy Purchase Price: $40

 Halo Shield (GPS Application):

 Monthly Subscription Fee: $10
Financials

 Revenue Forecast
 Assuming 7.5% price decline / year for Hardware
 Halo Lock and Halo Key Devices
 Assuming 90% retention rate on Halo Shield
subscriptions
Financials
Financials
 Costs of Goods Sold
 Halo Key (GPS) : $57.97 / unit
 Manufacturing Costs: $50
 Shipping: $5.21
 Exclusive Royalty: $2.76

 Halo Lock (Blue Tooth): $26.47 / unit

 Manufacturing Costs: $20
 Shipping: $5.21
 Exclusive Royalty: $1.26

 Halo Shield (GPS Application): $100 / device / year

 GPS Gate Fee: $10 / month / device
Financials
 Gross Profit 33%
 2014: $179k to 2015: $1.8M
 CAGR – 58.6%
Financials

 SG&A
Financials

 Financing
 $317,000 startup
fees
 $30,000 owner
contributions
 $230,000 financing
required
 Loan
 5 year loan @ 8.5%
 $4,662 / month
Financials
Financials
Financials
 Break Even : January 2016
Exit Plan
 Exit Plan : Acquisition in 2019

 Who?
 Garmin, Magellan, Lowrance

 Why?
 Profitable in second year
 Break Even in 2016
 $2.8 million in profits over 5 years
 Capture over 3% of GPS market
 Future growth opportunity (Retailers, Geographic, Industry
trends)
Conclusion

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Questions?
Title

Questions?