Business Plan for 700 Grams Aerial Vehicle

This business plan outlines the development and production of a 700 Grams Aerial Vehicle for commercial purposes. It includes market analysis, competitive analysis, financial forecast, and plans for external funding. The objective is to produce high-quality aerial vehicles at an affordable price to meet the growing demand in various sectors.

BUSINESS PLAN FOR 700 GRAMS AERIAL VEHICLE
[Author Name(s), First M. Last, Omit Titles and Degrees]
[Institutional Affiliation(s)]

Introduction
The main objective of this project undertaking is to develop an aerial robot (700 Grams Aerial
Vehicle) that is fit for human applications in different fields. The production is intended to be in
large scale and for commercial purposes as well as other suitable aerial platforms (Klooster, et al
2014). This project is intended to be carried out in the largest city of Switzerland, EHT Zurich
partnering with two important industrial companies basically from the Silicon Valley. This
industry has become successful due to growing demand and support of state. The figure below
gives a sample representation of the most basic-model of Aerial-Vehicle (Barton, et al., 2014).
Fig. 1: The image of an Aerial-Vehicle
This technological concept has got a number of applications, for instance carrying out research,
military and law-enforcement (Antebi, 2014). The cost of production is expected to be as low as
possible and ensure high quality.

Market and Customers, Market Size and Trend.
The business project targets customers from six different sectors like researchers who rely on this
platform, military department, lawyers, photographers, mining department and specialist in
agricultural-surveillance activities. The market is expected to increase in the near future and the
company will embark on a massive expansion plan to other regions in Switzerland and the rest of
other countries. There has been a limited growth in production trend of these aerial-vehicle robot,
that is 4 aerial-vehicle were produced in previous years and this grew to about 22 aerial-vehicle
in a given year from 2010. The business therefore the business intends to increase its production
beyond this to meet the growing demand for its customers. The future outlook of the business
seems to be very bright and one of the key success indicators is the pricing strategy of the
product that will kept affordable to customers. The business will also focus on small population
to ensure that its growing demand does not exceed its supply of aerial-vehicle in a given period.
The business in long term will focus larger market and increase its productive capacity to double
digits by the year 2030. This will be achieved by setting up proper marketing objectives and
carrying out serious advertisement campaigns. The business also intends to increase the size its
market by formulating key short-term and long term-policies.
Table 1: Showing yearly projected number of target customers
Target customers/Year 2019 2020 2021 2022 2024
Lawyers 2 4 8 12 20
Military department 5 7 10 15 25
Researchers 5 7 10 18 30
Agricultural surveillance experts 3 4 6 10 16

Photographers 4 5 6 10 14
Mining department 1 3 6 10 15
Total 25 30 36 75 120
Source: Projections from previous statistical data in Zurich
Target market and customers.
The business will be established in Zurich which is the largest city of Switzerland. The city of
Zurich is located in the northern part of the country along river Limmat closer to lake Zurich.
The population of Zurich city is approximately above 380,500 persons. This population is never
constant and increased by 19,500 in the recent past since the year 2000. Currently, about 1.9
million people live in the metropolitan-region whereas about 1.1 million people stay in Zurich-
agglomeration. Owing to this population, it evident that a good percentage of people stay in the
metropolitan city hence it is very economical to access customers. Other raw materials are also
readily available that will make the production affordable. This city comprises of many financial
institutions, that is 82 out of 208 have main headquarter in the city meaning that there many
commercial activities taking place.
Table 2: The estimated population trend in Zurich city
Year 2000 2005 2010 2015-2017
Approximated Population Size 340,500 360,578 380,500 402, 762
Source: United Nations
Statistics in the past few years have indicated a considerable growth in population since 2000. By
2030, population is expected to be high hence the need to expand.
Competitive analysis and Estimated market share

Being the fact that this market has remained lucrative in the past, a country like India has made a
triumphant entry in the market. The existing competitors like U.S army has invested a lot in this
technology. These competitors have been able to make the market to become a competitive space
for new innovation and invention. The business is therefore expected to develop high standard
and quality aerial-vehicle at an affordable price to enable it enter the market easily. This means
the business will invest a lot in market research and make technological adjustments where
possible.
SWOT-Analysis
Strengths
A competitor like U.S army is well established and invested a lot of capital in technology to
enable it develop new designed helicopter drone with very high-quality cameras. India is
considered to be very aggressive and has huge demand for aerial vehicles and was able to
produce its aerial vehicle after a short time. These are some of reasons that gives the competitor a
competitive advantage.
Weaknesses
There exists a lot of bureaucratic controls and use of big human experiments in U.S aerial-
vehicles industry hence posing serious challenges. Poor quality drones made in India has lost
many lives. Therefore, the business is expected to capitalize on these weaknesses by making
processes simpler and producing very high-quality aerial-vehicles.
Distribution Strategy

The business is expected to have its main depot in Zurich city and opening up other small outlets
outside that will equipped with displays for various agents.
Finance forecast (Profit and Loss)
Table 3: Sales Volume projection for 3 years
Years 1 2 3
Aerial-Vehicle sold 25 30 36
Source: Projections from previous statistical data in Zurich
Table 4: Sales-Revenue
Details Sales-Revenue Unit-Price Number
Outlet-price-estimate $ 2,000 $ 2,000 1
Device-price-estimate $ 19,500 $ 1,300 15
Total $ 21,500
Profit and Loss A/C
700 Grams Aerial-Vehicle Co. Ltd
Proforma Income Statement
Year 1 Year 2 Year 3
Sales Revenue ($) 537,500 645,000 774,000
Variable cost ($) ¿5,00) (30,00) (36,000)
Fixed Cost ($) (85,000) (85,000) (85,000)
Net Profit Margin ($) 427,500 530,00 653,000
Financial forecast (Cash flow)
700 Grams Aerial-Vehicle Co. Ltd

Proforma Statement of Cash flow
Details Year 1 Year 2 Year 3
Opening Cash Balance ($) 0 174,000 654,000
Net Profit ($) 427,500 530,00 653,000
Capital invested ($) (320,000) 0 0
Borrowed loan ($) 100,000 (50,000) (50,000)
Equipment acquisition ($) (33,500) 0 0
Closing Cash Balance ($) 174,000 654,000 1,257,000
Break-Even Analysis
Break Even Point (BEP) = ¿Cost (FC)
1− Variable Cost ( VC )
Selling Price ( SP )
Year 1:
Fixed Cost = $ 85,000 , Variable Cost per-unit = $ 1,000 and Selling Price-per unit = $ 21,500
BEP =
85,000
1− 1,000
21,500
BEP = 85,000
0.9535
BEP = $ 89,145.25
Figure 1: Break-even point analysis

External Funding
It is expected the for the business to carry out its operations well and also to increase its level of
productive capacity, a grant assistance worth of $100,000 will offered. This grant will be paid
into two-folds. The payment will made in two years after start of the business. That is, first-half $
50,000 in year 2 and last half $ 50,000 in year 3 for better and further expansion of the business.
Conclusion
The company believes that it has found a market-niche for 700 Grams Aerial-Vehicle where it
will become successful. Through this the company will embark on future plans to edge out its
competitors by producing quality and affordable flying-robots that matches various needs of
customers. Grant-assistance from investors is needed.
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