Involved Homes LLC | Application Preview
Involved Homes LLC is seeking government grants to support the launch of its innovative smart home products, particularly an automated shower cleaner. The founder has already invested $7,000 of personal funds and requires an additional $27,000 to cover critical startup expenses, including research and development, mass production molds, and initial inventory. The business plan aims for substantial growth within 12 months, targeting a profit margin of $30 per unit sold at a retail price of $50, which could elevate annual revenue to over $1,000,000.
The first year focuses on launching the product and establishing a market presence through crowdfunding and partnerships with home appliance manufacturers. In subsequent years, the plan includes expanding the product line, increasing national distribution, and exploring international markets. The ultimate goal is to build a strong brand, enhance customer experience, and diversify revenue streams.
Involved Homes stands out in the rapidly growing smart home automation market due to its commitment to simplifying daily tasks for busy families. The unique approach to addressing consumer needs, combined with innovative technology and a strong brand mission centered on work-life balance, positions the business favorably against competitors like iRobot and Samsung. Overall, the application emphasizes the potential for significant financial returns while aligning with consumer values focused on quality family time.
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General Information
Business Registration Number: L23000360953
Location: Davenport, FL, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: Less than $100k
Open to Loans: YES
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Funding Usage
I am self-funding the start-up of Involved Homes and have already invested $7,000 of my own money in setting up the business infrastructure and product testing. I have $27,000 more in spending that is necessary to get my first inventory order to market. With $15,000 I can cover the development costs, the prototype costs, and the mass production mold costs. I intend to continue self-funding, using Kickstarter, and taking pre-orders to fund the remainder of my business launch costs. Smart home products are high margin and are in high demand currently, if I can get this product to market it will easily pay off initial investments or any loans within a few months based on terms. One-time expenses prior to launch day: Research and Development: $6,000 Mass production mold cost: $7,500 Initial inventory order of 1000 units at $8 per unit: $8,000 Freight shipping from China to the US: $4,000 Trademarking process: $1,500
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Business Plan
My next 6 months business plan is to sell my initial 1000-unit inventory at $50 retail with a cost of $17 per unit total. That will leave me at $33,000 in profit to reinvest into Amazon pay-per-click ads and Facebook ads as well as place my next inventory order for 2,000 units and scale up from there. This model allows me to double my inventory each order. By the 3rd order of 4,000 units I will have enough inventory to hit 3.000 units per month of sales which extrapolated out over 12 months is >$1,000,000 in annual revenue. My target goal over the next 12 months is to grow the business to 100 sales per day at $30 profit per unit, and $50 revenue per unit, resulting in an annual revenue of $1,100,000. I do not intend on taking any payout of the business for the first 12 months. After crossing the $1,000,000 revenue threshold I intend to quit my current full-time job and run the business full-time and begin to hire staff to grow further. Year 1: Establish Market Presence Product Launch: In the first year, focus on successfully launching the Automatic Shower Cleaner and gaining a foothold in the market. Leverage crowdfunding campaigns and marketing efforts to create brand awareness. Strategic Partnerships: Form alliances with home appliance manufacturers and retailers to expand distribution channels. Product Expansion: Begin R&D for new automated household products to diversify the product line. Year 2: Expand Product Line New Product Releases: Introduce a range of smart home automation products, including a robotic vacuum cleaner and automated kitchen appliances. National Distribution: Expand distribution nationally through partnerships with major retailers and e-commerce platforms. User Base Growth: Concentrate on building a loyal customer base through excellent customer service and user engagement. Year 3: International Expansion Global Reach: Start exploring international markets to tap into the growing global demand for smart home automation. Research and Development: Invest in ongoing product development to stay at the forefront of technology and innovation. Year 4: Enhance Customer Experience Subscription Model: Introduce subscription services for software updates, maintenance, and customer support. App Integration: Improve the user experience by enhancing the mobile app's features and functionality. Sustainability: Consider eco-friendly product options and emphasize the importance of sustainability. Year 5: Strengthen Brand and Diversify Revenue Streams Brand Building: Invest in marketing and advertising to solidify brand identity and reputation. Commercial Market Entry: Explore opportunities in commercial settings such as hotels and apartment complexes for B2B revenue streams. Acquisitions: Consider acquiring or partnering with complementary businesses to expand the product range and market presence. Public Offering: If the company's financials are strong, evaluate the possibility of going public for additional capital to fuel further expansion. Throughout these five years, it's crucial to focus on customer feedback, technology trends, and changing market dynamics to adapt and remain competitive. Regularly reassess the business plan and financial projections to ensure alignment with growth objectives. Growing Market Demand: Investors should consider Involved Homes LLC due to the increasing demand for smart home automation and time-saving solutions. As busy lifestyles become the norm, there is a significant market eager for products that simplify daily chores, making the company's offerings highly relevant and in demand. Innovative Technology: Involved Homes distinguishes itself through its innovative and user-friendly automated household products. The brand's commitment to cutting-edge technology and ease of use positions it well to capture a substantial share of the smart home automation market. Strong Brand Mission: The company's dedication to simplifying lives and promoting more quality family time resonates with consumers. Investing in Involved Homes not only offers potential financial returns but also aligns with a brand mission that emphasizes the importance of work-life balance, a factor that can attract socially conscious investors.
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Self Identified Competition
The first Involved Homes product is an automated shower cleaner (think of an automatic soap dispenser mixed with a robot mopping robot). There really isn't a current competitor marketing this product. iRobot Corporation: iRobot is a well-established brand known for its Roomba robot vacuum cleaners. They also offer other smart home cleaning products, such as the Braava jet mopping robots. Ecovacs Robotics: Ecovacs is another major player in the home robotics industry. They produce a range of robot vacuum cleaners and window cleaning robots. Their products are known for their affordability and smart features. Samsung Electronics: Samsung, a global electronics giant, offers a wide range of smart home appliances and devices. They have robot vacuum cleaners, smart washing machines, and other household products that compete in the home automation space. Keep in mind that the competitive landscape can change over time as new companies enter the market and existing ones evolve. Continuous market research and analysis will help you stay updated on your direct competitors and emerging players in the industry. Involved Homes is different because I am not approaching this business as a way to sell products. I'm trying to make busy parents' lives easier so they can enjoy more of their time with their children. I'm a busy father, a regional manager at my current job, I'm a college student pursuing my MBA, I'm a veteran, and I'm starting a business. I know how hard it is to feel like there are not enough hours in the day and how I wish I could have more time with my children. I am solving people's life problems by freeing up their time with easy-to-use automation of tasks they didn't want to do already. By focusing on who and not what, I am building a base of loyal brand followers. That gives me an excited population for product launches, will generate more positive reviews, and means I can charge a higher premium price without having to fight a price war to the bottom.
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