1 | I. EXECUTIVE SUMMARY Description of Franchise: FLEETedu is a convenient service that introduces relevant skills and technological equipment to aspiring students and adults interested in the competitive workforce where technology is present at every corner. By providing a mobile fleet of buses equipped with your choice of five revolutionary products, brought to you by our partners, we collaboratively teach and inform attendees at booked events on the endless possibilities that 3D printing, laser cutting, programming, etc. can help you. Overview of Industry: Jobs in IT are skyrocketing; they are expected to grow 6.1% annually from 2010-2020. With this rapid increase in jobs, starting an IT career in college is no longer early enough. Students are now beginning in high schools to stay capable and sharp. FLEETedu, brings the latest in innovation & revolutionary technology to events, schools, and corporate bonding to your door. Demographically FLEETedu will target people between the ages of 14-70, in communities where the median wage is $75,000 a year. FLEETedu will be teaching our target group how to use and apply new technology to the real world. Psychologically we are targeting people with a natural curiosity towards revolutionary ideas, an interest in tech, and interactive learning. Geographically we are targeting territories, specifically the Silicon Valley (including Palo Alto) and Fremont areas, where technology is thriving and we have the potential to find other start up businesses to partner with and showcase at our events. Proposed Promotion: When we first open for business in San Jose most of our time and energy will be spent in promotion to establish our name out in such a large territory, including Palo Alto and Fremont. To strengthen our grasp on these cities, I have split advertising between personal & non-personal categories. Personal Non-Personal ● Flyers to District --> Trickling downward toward teachers ● Word-of-Mouth advertising ● Refer a friends,earn Extra Tech ● Get another event, Waive Transport Fee ● Internship --> Scholarship (10% Profit) ● Business Cards/ Stickers ● Website / Email Blast ● Social Media ● Maker Movement San Jose ● Radio Station MPR Ad Proposed Financing Plan: The franchise fee for FLEETedu is listed as $20,000 dollars. During the first year of operations FLEETedu will have a gross profit of $370,273or $187,671 after salaries, rent, insurance, scholarships etc.; after three years sales are projected to be at $461,599 a year, or $248,979 after expenditures. During our first year, we will take out a $60,000 dollar loan at 5% interest that will be paid back by the end of the fourth year, at $15,000 a year.
Transcript
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I. EXECUTIVE SUMMARY
Description of Franchise:
FLEETedu is a convenient service that introduces relevant skills and technological equipment to
aspiring students and adults interested in the competitive workforce where technology is present at every
corner. By providing a mobile fleet of buses equipped with your choice of five revolutionary products,
brought to you by our partners, we collaboratively teach and inform attendees at booked events on the
endless possibilities that 3D printing, laser cutting, programming, etc. can help you.
Overview of Industry:
Jobs in IT are skyrocketing; they are expected to grow 6.1% annually from 2010-2020. With this
rapid increase in jobs, starting an IT career in college is no longer early enough. Students are now
beginning in high schools to stay capable and sharp. FLEETedu, brings the latest in innovation &
revolutionary technology to events, schools, and corporate bonding to your door.
Demographically FLEETedu will target people between the ages of 14-70, in communities where
the median wage is $75,000 a year. FLEETedu will be teaching our target group how to use and apply
new technology to the real world. Psychologically we are targeting people with a natural curiosity
towards revolutionary ideas, an interest in tech, and interactive learning. Geographically we are targeting
territories, specifically the Silicon Valley (including Palo Alto) and Fremont areas, where technology is
thriving and we have the potential to find other start up businesses to partner with and showcase at our
events.
Proposed Promotion:
When we first open for business in San Jose most of our time and energy will be spent in
promotion to establish our name out in such a large territory, including Palo Alto and Fremont. To
strengthen our grasp on these cities, I have split advertising between personal & non-personal categories.
Personal Non-Personal
● Flyers to District --> Trickling downward
toward teachers ● Word-of-Mouth advertising ● Refer a friends,earn Extra Tech ● Get another event, Waive Transport Fee ● Internship --> Scholarship (10% Profit)
● Business Cards/ Stickers ● Website / Email Blast ● Social Media ● Maker Movement San Jose ● Radio Station MPR Ad
Proposed Financing Plan:
The franchise fee for FLEETedu is listed as
$20,000 dollars. During the first year of operations
FLEETedu will have a gross profit of $370,273or
$187,671 after salaries, rent, insurance, scholarships etc.;
after three years sales are projected to be at $461,599 a
year, or $248,979 after expenditures. During our first
year, we will take out a $60,000 dollar loan at 5% interest
that will be paid back by the end of the fourth year, at
$15,000 a year.
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II. DESCRIPTION AND ANALYSIS OF THE BUSINESS SITUATION
A. Rationale and marketing research
The highest growing fields and jobs in the United States involve technology. Exactly one third
of the top 30 fastest growing jobs, according to Boston.com, involves a form of technology or requires a
technological background. In some high schools and middle schools around the nation, academies have
sprung solely to keep up with the new age including, but not limited to, STEM (Science, Technology,
Engineering and Mathematics), the Business academy, Medical, etc. As months progress and technology
is improved the youth today must be prepared to hit the job market, however these types of skills can not
come from the class alone, it requires a hands on approach.
“The benefit of information technology is that it empowers people to do what they want. It lets
people be creative. It lets people be productive. It lets people learn things they didn't think they could
learn before, and so in a sense it is all about potential.”- Steve Ballmer, former CEO of Microsoft.
FLEETedu introduces relevant skills and technological equipment to businesses owners and students.
Schools around the nation can no longer afford to send students on field trips due to financial reasons and
business cannot afford to attend expos. FLEETedu brings these educational trips to you by providing four
hours’ worth of interactive workshops to introduce 3D printers, laser cutting, and programming/modeling.
Primary Research Secondary Research
➢ Observation:
○ Approx. 20% of people asked
for business cards
○ Approx. 90% of attendees
were between 16-40
➢ Survey:
○ 85%:people attending events
had technological curiosity
○ 96%:stated FLEETedu booth
and/or Bus was informative
➢ Interview:
○ (6/6 of interns)Made Interns
feel prepared for a
○ (6/6)Did not regret their
experiences at events/work
➢ City of San Jose Census:
○ City Wide median household income
is $76,794
○ 37.5% of 25-34 year olds have a
Bachelor's degree or higher
➢ Bureau of Labor Statistics:
○ Since 2003, IT employment has
grown 37%
○ Between 2000-2010, industry output
has increased 4.6% annually
○ 2010-2020 Computer system is
expected to grow 6.1% annually
design
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B. Introduction:
FLEETedu is a corporate owned and newly franchised innovation delivery system. FLEETedu is
a mobile fleet of refurbished city buses that are remodeled to include a digital arts lab with equipment
sponsored by our partners. Schools, corporations, and festival coordinators can then register to have us
visit their site and educate people on their choice of five new technologies such as 3D printing, one of the
disruptive prototyping technologies that will revolutionize the market and workforce, opening new career
and educational opportunities in schools and tech businesses. The FLEETedu team organizes, promotes
and staffs the events as well as suit up buses for a three to four hour session full of interactive exhibits and
events ranging from flash exposures to equipping people with
these new products. Advisors working at the events are interns
who have knowledge and experience based around one or
more specific pieces of equipment, as they progress they move
up in ranks and represent more advanced equipment such as
laser cutting and CNC routing.
C. Self-analysis:
As an entrepreneur, I have positioned myself to excel
as a franchisee. I interned at FLEETedu, where I learned to
fix, operate, and speak on the behalf of our partners, such as Type-A (startup 3D printing company), at
events at schools and festivals. I am a proud student of the San Leandro High School Academy of
Business & Finance, where students are taught how to start, market, and finance a business in a business
environment. I am also the Vice President of the San Leandro High School DECA Chapter, an
international business competition.
These experiences have enabled me to be a co-founder and manager of Pier 15, the San Leandro
High School Academy of Business & Finances student store. All of the profits go towards a scholarship
for our senior and future senior Business students.
During my high school career I have completed three business plans and a sales training manual,
the first business plan reached the finals for NFTE’s (Network for Teach Entrepreneurship) Bay Area
World Series of Innovation, the second for a custom Longboard Sole Proprietorship, a rebranding paper
for the Bal Theater, taking first at DECA’s Northern California competition & sixth place at the DECA
California State, and a sales training manual for a Lenovo IdealPad Y500, gaming laptop. Advance
placement classes such as Computer science, Physics, and Calculus, have enabled me to establish a solid
foundation to represent and build FLEETedu in another territory.
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D. Analysis of the business Opportunity, Customer and Location:
The city of San Jose is located in Santa
Clara County. The city has a population of 998,537
(as of 2013), 70% of the population is in my target
market (15-60 years old). San Jose lies on the
Southern coast of the San Francisco Bay and is East
of Palo Alto and West of Fremont in which over
fifty high schools, colleges, and corporations reside.
San Jose is 42% White, 32% Asian, 33% Hispanic,
and 3% African American. The median income for the city is $81,829, roughly $10,000 more
than our expected target market. San Jose is predominantly male, at a 50.3%. Over 83% of the
population has a high school diploma or higher, while close to 40% have a bachelor’s degree or
higher. These numbers ensure high school to college students who are seeking to further their
knowledge and career. As of 2010 to 2020, computer science degrees are expected to grow 4%
annually while science degrees are expected to grow 6%.
E. Proposed organization:
FLEETedu, a P.B.C. (Public Benefit Corporation) a business for profit that is set up for the
communities benefit, is a franchise owned by four business partners and coordinators, formed in 2013
who constantly monitor, update, and expanding their knowledge base and experiences. As an
entrepreneur, to begin business, I must pay the franchising fee of $20,000 (as well as a 7% annual royalty
fee), this includes the preset partners and any other partners that may be connected in the future. I would
then receive training and referrals for possible event opportunities found in San Jose/Silicon Valley area
to kick off FLEETedu, such as Thinktomi, a real time updated textbook. Once we move in and establish
our office in the Creekside Business Park, San Jose, we would interview for the manager and applicants
from neighboring schools for intern positions. Succeedingly, all employees and interns receive
training/seminars in one or more pieces of technology from our partners.
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III. PROPOSED MARKETING/PROMOTION PLAN
A. Proposed product or service: FLEETedu represents 8 different digital fabrications that are brought to events around the
territory though expose, engage, or equip bus packages. These include, but are not limited to:
Product Source Description
3D Printer
Type-A Machines Printer that extrudes PLA filament to
construct 3D designs by depositing small
amounts beginning at the base,upwards.
3D Design
Rhynocoris
Online
3D Designing software used to model art, and upload to 3D
printers, CNC Routers, and Laser cutters.
3D Scanning
Sugar Cube Small cube designed to scan objects to form 3D models
while avoiding extensive 3D modeling experience and
industrial scanners.
Laser Cutting
Full Spectrum
Laser
Fully operational laser that cuts designs with the precision
guided by modeling software.
CNC Routing
Thermwood Guided drill carving out modeled 3D designs and art
instructed by 3D modeling software on wood, cardboard,
Styrofoam, etc.
Motion Capture
Phase Space Strategically placed camera’s design to monitor and track
motion in a given area.
Arduino
Arduino Online Arduino boards receive sketches and burn bootloader design
by programmers through ISP connector.
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B. Proposed pricing policy: (CP: Competitor Pricing)
Product Cost Proposed Price CP -“Mad Science” CP-“Museum of Tech”
Expose Model Visit $317.50 $1,000.00 One Hour Birthday
$225.00 One day Ticket: $20.00
Equip Model Visit $317.50 $1,500.00 Two Hour Birthday
$285.00 Membership: $40.00
Engage Model Visit $417.50 $2,000.00 Three Hour Birthday
$305.00 N/A
(Cost includes employees, gas, etc.) While FLEETedu’s prices are generally higher, compared to Mad Science, FLEETedu offers
triple the amount of time while displaying far more advanced technology. Mad Science targets 5-12 year
olds, contrary to FLEETedu that targets the 14-60 year age group, making itself an indirect competitor.
The Museum of Technology offers lower prices with several interactive workshops; however, their
location does not reach Fremont or Palo Alto, offer new age technology, or the convenience of a mobile
lab.
C. Personal promotion:
The first few months of trade, most of marketing will be done
personally. By reaching out to schools, we pinpointed our target
market by connecting to students and people who are preparing for the
future and potential jobs. This may provide an opening to the
possibility of other potential Tech startup partnerships.
● Emails/flyers: Beginning with school districts and trickling down towards teachers in the San
Jose, Palo Alto, and the Fremont area.
● Word-Of-Mouth Advertising: Advertising resulting from Emails/Flyers/Event Ads
● Internships: Internships will be offered to San Jose State Universities business and computer
science majors, as well as high school students in the area. Interns are awarded 10% of net profit
every year, divided amongst interns.
● Deals and Incentives (offered by FLEETedu based on reference): Get another event or school
to book FLEETedu = waive your transportation fee or offer one extra piece of technology to be
showcased at your next event. Should a business wish to partner, we offer reduced exhibits for
business along with connections to partnered businesses.
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D. Non-personal promotion: Non-Personal promotion is marketing based on indirect communication with the consumer.
● Business Cards/Stickers:
○ Provide contact information along with our mission statement:
“Creating the next generation workforce by delivering a high-impact digital arts and fabrication
experience to corporations, schools, and events through our all-in-one mobile event vehicles.” -
Mission Statement
● Social Media:
○ FLEETedu will manage a Facebook account, with the addition of a Twitter account,
where newsletters on FLEETedu’s progress, newest technological additions, and
Innovation Fridays, Blogging the latest in technology.
○ Instagram, posting pictures and count downs of upcoming events, technology news, and
challenges such as promoting day of code using #FLEETcode and challenging others by
tagging three other people.
● Website:
○ During the first few months people can participate in our Instagram Challenges by
locating things on our website and posting them while tagging us in the picture. Small
profit will be made off of google adsense.
● Email Blast through MPR:
○ 2,000 emails will be sent through MPR each quarter for the second year of operations to
reach out to businesses and people with active interest in education and information.
● TechShop San Jose:
○ FLEETedu would partner with TechShop San Jose to assist in the Maker Movement by
providing seminars and working with students and staff, teach them how to use our
cutting edge technology once every quarter.
E. Place:
Place is the channel of distribution from our service provided to our consumers. A simplified
layout can be represented below:
Partnered Businesses →FLEETedu→Website→Consumer
Partnered Businesses provide display models of product and a seminar to our program captain and interns
on how to work, make repairs, and engage people during events. Consumers go on our website and book
our bus for events, setting dates, which products, and experience package (Between expose,engage, or
equip).FLEETedu will connect with consumers via cities and corporations. By partnering with cities, we
can earn city business contracts and school district involvement (part of the curriculum). Since
FLEETedu targets schools and businesses we will be set up in Creekside Business Park, central San Jose,
to have close connections with schools and businesses.
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IV. PROPOSED FINANCING PLAN
A. Projected first year income statement, UNITS = Average
Payment of an Event
One Year Plan Info Total
Income Sales Units: 263 $394,500
Cost of Goods Sold $4,226.78 (gas) $4,226.78
Gross Profit --- $390,273
Net Profit Before Tax/Royalty $241,565.22
Net Profit After
Tax/Royalty/Scholarship $187,671.70
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B. Projected three-year plan:
Yearly Plan Year One Year Two Year Three
Income Sales $394,500 $430,500 $466,500
Cost of Goods Sold $4,226.78 $4,564.28 $4,900.78
Initial Franchise Fee $20,000 $0 $0
Gross Profit $370,273 $425,935.72 $461,599.22
Expenses
Term Loans $15,000 $15,000 $15,000
Salary of Owner $38,400 $42,240 $46,464
All other salaries $17,400 $19,140 $21,054
Rent $27,360 $27,360 $27,360
Advertising $1,332 $15,400 $15,400
Telephone/Internet $1,140 $1,140 $1,140
Insurance $2,400 $2,900 $3,400
Maintenance $480 $960 $1,440
Damage and Claim $600 $600 $600
Legal Fees $7,200 $7,200 $7,200
California Business License $100 $100 $100
Miscellaneous $396 $396 $396
One Time Expenses
Equipment & Remodel --- $3,450 $3,450
Total Expenses $148,708 $135,886 $139,554
Net Profit Before Taxes $241,565.22 $290,049.72 $322,045.022
Net Profit after Tax/Royalty $187,671.70 $224,630.88 $248,979.16
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C. Capital and repayment plan:
Small Business Loan
Loan Interest Rate Spread
$60,000 5% 4 year / end of 4th Quarter
To be able to fund my business during its first year I will have taken a loan of $60,000 to be paid
off by the end of the fourth year/ The loan will be taken out on top of an interest rate of 5%, every year I
will be paying back $15,000, as well as the interest for the amount stated at the end of each quarter.
Capital Repayment:
Capital repayment is the money an investor will get back based on your investment and the
businesses growth. There are two different ways to invest, start up capital, where you can earn a
percentage more back, or in equity where you can own a percentage of the business and earn that portion
