3. The Problem Traditional external bicycle gear shifting reliability depends on User set-up Compatibility of parts The chance of a standard gear system shifting correctly is 26% External gear systems are prone to the elements Maintenance Quality
4. Symptum’s Solution A standardized Drive System That will reduce the overall weight Guarantees a 98% chance of shift reliability Symptums internal drive system is more efficient then anything out there today on the market. Will be significantly less expensive to manufacture. Frames will be lighter, more durable and reliable.
5. Mission Statement Symptum Cycles has one ultimate motivation- Change. To be the premiere provider by offering a product that uses the most advanced technology available to assure a more effective and purely exceptional product design. Making performance and perfection a standard.
6. Business Concept Drive System No gears will be required for shifting. Will use a Infinitely Variable Planetary Drive System. Symptum will pre-select 27 gear ratios to be shifted by a rapid shift mechanism. Ability to offer an infinite amount of gear ratios. Creates a more balanced bike distributing the weight towards the center of the bike.
7. Standard External Gear System A standard gear systems chances of shifting correctly is less than half than that of an internal gear system. Requires constant maintenance. Exposed to the elements. Over time major wear will occur. Possibility of potentially damaging beyond repair. Gear selection is severely reduced.
8. Symptum Internal Drive System Requires little to no maintenance. Not exposed to the elements. Will be similar in weight. Shifts more reliably all of the time.
9. Opportunities All bikes will be made from an Easton proprietary aluminum tube set. Use Hydro-forming and CNC Machining to strengthen and reduce weight in frame designs. Our standardized internal drive system will allow for precision shifting of 98%. They will be designed and handcrafted in the United States.
10. The Team President Mitch Angus: Avid sponsored bicyclist competing The National Off-Road Bike Association, Oregon Bike Racing Association, Canadian Cup, Washington, Idaho, Montana Mountain Bike Series. COO Meagan Terrell: Recreational bike rider Entrepreneurship Major, Experience with startup companies
11. Market Summary 6 Billion Dollar Industry in the US. Bike Industry is growing at a rate of 6.4%. Headquarters will be located in Portland, Oregon. Portland regularly ranks at the top of Bicycling Magazine’s list of the best cycling cities. Portland’s bicycle-related industry is worth $63 million. Nation’s highest % of workers who commute by bike, about 3.5%. The market is increasing yet stable and will continue to thrive with popularity in the sport starting to increase.
12. Target Market Active, passionate bike riders ages 15-35 Aggressive, active and entertaining lifestyle while seeking high quality of perfection and reliability Discretionary income
13. Competition Bicycle industry is divided into 4 different distribution channels. Specialty 49% II. Full Line 8% III. Other 6% IV. Mass Merchants 37% Niche Having a standardized internal drive system will set us apart from the competition.
14. Marketing and Sales Word of mouth & viral marketing will play a large role in Symptum’s business. Sponsoring events & promoting products at conventions A team vehicle that shows up to local events A team of sponsored riders to ride Symptum bikes at events and hand out advertising products
15. Operations Local bike shops will be utilized to sell our products. Symptum has no physical retail stores. Bikes designed at Symptum Cycles, sent to manufacturing plant for assembly, sent back to Symptum Cycles once completed Parts to be assembled onto frames will be sent to Symptum Once a distributor purchases a bike Symptum will send them the frame and parts to be assemble on the bike and then sell the bike to the end user
16. Goals and Objectives Year 1 First 6 months design gearbox Acquire patents Second 6 months market testing phase Year 2 Introduction in to market 350 bikes, $900,000 sales Year 5 $3,000,000 in sales International Sales & 1% of market Acquisition/ Buy out investors
17. Risks and Rewards Design might not meet expectations Market Acceptance of the internal gearbox Valuation- Year 5 is $923,404.36 at a 30% discount rate
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19. Financing Required Capital October- $97,500 February- $150,000 August - $100,000 Willing to give up 39% of equity
20. Exit Strategy Year 5 acquisition – First Investor- $1,550,000 Second Investor- $400,000 Buy out investors at 5x their initial investment First Investor- $750,000- Year 5 Second Investor- $500,000- Year 6