Project Brief: Analysis of Easy Eddy Modular Board Startup

This project brief analyzes the Easy Eddy Three-Piece Modular Paddle Board (SUP) startup, funded by a Kickstarter campaign, focusing on its potential in the Australian market. The project identifies market drivers like Australia's suitable surfing conditions and growing surfboard sales, while also acknowledging constraints such as fluctuating demand and competition. The brief proposes using Porter's Five Forces and competitive analysis to evaluate the market and recommends researching demographics and target markets. Financial projections, including cash flow and profit and loss statements, are provided. The project also highlights risks like product delays and patent issues. It emphasizes the need for additional information regarding funding, patent status, sales projections, and product differentiation. The project concludes with a personal development plan that outlines objectives such as understanding startup establishment, applying analytical tools, and analyzing financial statements, aiming to enhance consulting skills and industry knowledge.

Running head: PROJECT BRIEF OF EASY EDDY MODULAR BOARD
PROJECT BRIEF OF EASY EDDY MODULAR BOARD
Name of the Student
Name of the University
Author Note

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PROJECT BRIEF OF EASY EDDY MODULAR BOARD
Introduction
This project brief is prepared to conduct an analysis of the various aspects related to the
setting up and distribution of the Easy Eddy Three-Piece Modular Board (SUP), a product which
is being funded by the Kickstarter campaign. This involves understanding the nature and
specifics of the product, identifying project drivers and constraints, forming a project proposal,
outlining the financial aspects of the project and identifying further information required to
provide appropriate guidance to the client. Further questions are formed to gain clear knowledge
about the client’s business that is required for the project. A pitch is made to the client about the
relevant skills that I bring to the table which are required for providing a successful consultation.
This report concludes with a personal learning development plan about the objectives set up
before the assignment and things learned after completing the assignment.

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Table of Contents
Abstract........................................................................................................................................1
Introduction..................................................................................................................................3
Brief Overview.............................................................................................................................3
Project Drivers and Project Constraints.......................................................................................3
Project Proposal...........................................................................................................................3
Project Related Information.........................................................................................................4
Relevant Skills and Experience....................................................................................................4
Personal Development Plan.........................................................................................................4

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PROJECT BRIEF OF EASY EDDY MODULAR BOARD
Brief Overview
The Easy Eddy Three-Piece Modular Paddle Board (SUP) is a surfing board available for
sale and is being funded through the Kickstarter campaign. The major selling proposition of this
product is its convenience and portability (Miquel-Romero, Caplliure-Giner and Adame-Sánchez
2014). Other benefits available from the product like a carry strap, aluminium paddle and rolling
case on discount. The shipping of the product is expected to begin in six to eight weeks after the
end of the Kickstarter campaign. The main objective of the consultancy project is to provide
Easy Eddy with recommendations about how the client should set up, market, sell and maintain
their ongoing operations in Australia, while taking the potential issues and competition into
consideration.
Project Drivers and Project Constraints
The main drivers of this project are the scope and growth of surfing business in Australia.
The weather and the geographic conditions of the country, combined with a coastline of more
than 35877 kilometres are extremely suitable for surfing (Cleden 2017). It is similar to the US
market in terms of both size and the behaviour of the market. Sales of surfing boards grew by a
margin of 15% in the month of April 2019 in all retail stores, which was the highest since April
2007 (ASB, 2019). They also grew at 2% in the month of June. This shows a trend of growing
demand for surfing boards. Some of the constraints that the business could face are the nature of
fluctuating demand for surfboards and extreme competition among the current start-ups
operating in the Australian market (Bogle, 2019). Even though the product deems itself to be
innovative, there are not many aspects which can be deemed to be unique to the product. Any
incapability to survive initial losses may impact the long-term business of the company.
Project Proposal
The main research and analysis that are required to comment on this project are Porter’s
Five Forces Model and Competitive Analysis of the other products being sold. This provides the
business with an idea of where it stands in the market when pitted against its competitors
(Kulicke 2014). The data required for identifying the potential market of the product in Australia
are the demographics of Australia, target market research of the most successful surfing
companies and the scope for growth in the market. In Northern Australia, surfing is not possible
in most of the areas due to the coral reefs subduing the tidal waves. Hence, the potential market

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for the product should lie in the Southern region of Australia or in a region where the access to
the Southern part is high. As young consumers are more likely to opt for products which are high
on innovation, the market should have a higher rate of younger population. Due to the high
number of competitions that take place annually, the product should promote itself in these areas
due to the vast exposure and potential customers that these competitions will provide. The major
issue of the project is to import the manufactured products from USA while also maintaining
their quality. The information provided in the Kickstarter campaign suggests that the design and
usability of product are not up to the expected level yet. Hence, managing the quality and making
them available for delivery at a short notice is a serious logistical challenge. For a start-up to
establish in a foreign country, the import guidelines and tax regulations of the Australian
government are an operational hurdle which need to be handled effectively.
Projected Cash Flow Statement of Easy Eddy Modular Board
Cash Flow From Operating Activities
Cash received from customers $150,000
Cash paid to suppliers, staff & employees ($10,000)
Cash generated from operating activities $50,000
Interest received $6,000
Interest paid ($15,000)
Taxes ($18,000)
Net cash flow from operations $163,000
Cash Flow from Investment Activities
Equipment purchases ($75,000)
Equipment replacement ($120,000)
Proceeds from equipment sales $3,000
Net cash flow from investment ($192,000)
Cash Flow from Financing Activities

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PROJECT BRIEF OF EASY EDDY MODULAR BOARD
Proceeds from capital contributed $182,166
Proceeds from loans $25,000
Loan payments ($7,000)
Net cash flow from financing $200,166
Net Increase/Decrease in Cash
Cash from beginning of period $0
Total cash at end of period $171,166
Projected Profit and Loss Statement of Eddy Modular Board
Revenue from operations $200,000
Other Income $6,000
Total Net Revenue $206,000
Cost of Goods Sold ($130,000)
Gross Profit $76,000
Expenses
Advertising & Promotion $3,000
Depreciation & Amortization $4,500
Insurance $4,000
Maintenance $2,500
Office Supplies $10,000
Rent $2,000
Salaries, Benefits & Wages $10,000
Telecommunication $1,500
Travel $750
Utilities $1,000
Other Expense
Total Expenses $39,250
Earnings Before Interest & $36,750

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PROJECT BRIEF OF EASY EDDY MODULAR BOARD
Taxes
Interest Expense $15,000
Earnings Before Taxes $21,750
Income Taxes $18,000
Net Earnings $3,750
Some of the risks associated with this project is related to the availability of the product on
demand. In case of any delay, customers can conveniently change to a substitute product, thereby
increasing the pressure on the company to improve its operating efficiency (Sadgrove 2016). As
the company has not received its patent yet, any form of rejection by the Intellectual property
authorities will likely to cause the operations of the company to shut down.
Project Related Information
Some of the project related information that are required to assess the consultancy project
requirements are the import networks being used by the company and their efficiency. Other
required information are related to the amount of funds that are available with the company other
than those accrued from the Kickstarter campaign. This will help in preparing the financial
details of the cost required for setting up a distribution network (Bell 2014). As observed in the
cases of many surfing companies, information is required about the ability of the company to
withstand the fluctuating markets in Australia (Annualreports.com, 2019).
Follow up questions
The questions that I consider relevant to the consultation project and would ask the client
are as follows:
1. What are the funds available to you apart from the money raised through the Kickstarter
campaign and how do you plan to use them?
2. What are the reasons for the delay in obtaining the patent and what is the probability of
obtaining the patent?

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PROJECT BRIEF OF EASY EDDY MODULAR BOARD
3. How many units of the product do you plan to sell in the initial year of the establishment
of operations?
4. How do you think is your product different from the other products available in the
market? What is unique about it?
5. How do you plan to deal with any complaints or defects about the product in a timely
manner?
These questions are necessary because of the absence of the required details in the
Kickstarter campaign. As the client is from a foreign country, the major hurdle that they face
is adjusting themselves to the business environment of the new country (Hohenthal, Johanson
and Johanson 2015). Hence, apart from considering the existing business conditions, the
client also needs to consider all the adversities that he may face after setting up the business.
The above questions are asked under the assumption that the company intends to carry on
their business for a long time and they would also carry out all the business processes by
themselves.
Relevant Skills and Experience
As an individual specialising in conducting research analysis required for consultation on
a project, I possess the necessary skills and experience to conduct Porter’s Five Forces analysis
and competitive analysis of a particular industry. This will enable the client to understand the
requirements of making this project successful and alter their plans accordingly. I will also
enable them to understand the assumptions underlying the project and take suggestions from
them about changing such plans.
Personal Development Plan
The purpose of forming this plan is to stay clear about the objectives behind taking up a
project and form a detailed analysis of the learnings made after undertaking the project. The
main objectives to be achieved before the completion of the assignment were as follows:
1. To understand the mechanism of establishing a start-up in Australia and the activities
necessary to make it a success. This analysis is extremely important because making a
start-up a success is much more difficult than setting up one (Haines 2016). The

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analytical skills are necessary to understand the market and avoid repeating the mistakes
of the start-ups which have failed previously.
2. To gain an understanding of the application and necessity of analytical tools required for
analysing an industry environment and knowing how to find gaps in the existing products
in the industry (Dobbs 2014). These skills are considered a must for a graduate to
increase the chances of his employability.
3. Conducting a detailed study of the financial statements of the companies in surfing
business and try to analyse the reasons for their continuous decrease in value despite
making profits on an overall basis (Warren and Gibson 2013). This is an important aspect
to learn because in the practical world of business, value is an often overlooked and
important aspect. Understanding the reasons for its decline is important in keeping the
business relevant for a long time.
4. To understand how to segregate information as relevant and irrelevant by comparing it to
the situation that one needs to work on. This skill is necessary to complete the project in
an effective and complete manner (Obeng 2016). This skill can be acquired by obtaining
an in depth understanding of the situation in hand and gaining a working knowledge of
the technical aspects of a project. This is necessary to complete projects belonging to
different industries and not be limited to a particular industry.
As a member of the team, I intend to contribute in every aspect of the assignment and not be
limited to particular aspects of it. This will enhance my knowledge in the area of consulting a
business and make me competent as a business graduate. The main challenges that come up
during this task are related to the lack of reliable and accurate information. This challenge can be
overcome by interpreting the available information using the knowledge obtained through
referring to the sources of literature and making certain assumptions which are not irrelevant to
the facts in hand. Other problem arises in applying the analytical tools to the situation of the
start-up. The research required to understand the situation of an entire industry is difficult. This
can be overcome by making the objectives clear before beginning work on the project. It makes
the segregation of information an easy process and enables to not deviate from the objectives of
the project.

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PROJECT BRIEF OF EASY EDDY MODULAR BOARD
Conclusion
It can be concluded from the above analysis that the information provided by the client is
not entirely sufficient for providing him with a suggestion on the steps that need to be taken to
set up and distribute his surfboards. Although it is evident that the project has potential to be a
success, further information is required about the financial aspects, operational details and the
effectiveness of the product in the market. The learning objectives of undertaking the project
were achieved to a satisfactory extent and their application should be done properly for the future
parts of the assignment.

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PROJECT BRIEF OF EASY EDDY MODULAR BOARD
References
Annualreports.com. (2019). Billabong International Limited - AnnualReports.com. [online]
Available at: http://www.annualreports.com/Company/Billabong-InternationalLimited [Accessed
17 Jul. 2019].
ASB. (2019). WHY DID THE US SURF & SKATE SPECIALTY SALES GROW BY 15% IN
APRIL? - ASB. [online] Available at: https://asbmag.com/why-did-the-us-surf-skate-specialty-
sales-grow-by-15-in-april/ [Accessed 17 Jul. 2019].
Bell, J., 2014. Doing Your Research Project: A guide for first-time researchers. McGraw-Hill
Education (UK).
Bogle, A. (2019). These 3 Aussie startups are bringing surfing and tech together. [online]
Mashable. Available at: https://mashable.com/2015/06/01/australia-technology-surfing/
[Accessed 17 Jul. 2019].
Cleden, D., 2017. Managing project uncertainty. Routledge.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Haines, T., 2016. Developing a startup and innovation ecosystem in regional
Australia. Technology Innovation Management Review, 6(6), pp.24-32.
Hohenthal, J., Johanson, J. and Johanson, M., 2015. Network knowledge and business-
relationship value in the foreign market. In Knowledge, Networks and Power (pp. 187-224).
Palgrave Macmillan, London.
Kulicke, M., 2014. 15 Years of EXIST" University-based start-up programmes. Working paper,
Fraunhofer Institute.
Martinez-Fernandez, C., Weyman, T., Fol, S., Audirac, I., Cunningham-Sabot, E., Wiechmann,
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global process to local policy responses. Progress in Planning, 105, pp.1-48.

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Miquel-Romero, M.J., Caplliure-Giner, E.M. and Adame-Sánchez, C., 2014. Relationship
marketing management: Its importance in private label extension. Journal of Business
Research, 67(5), pp.667-672.
Obeng, K., 2016. Effectiveness of internal audit in micro financial institutions: Evidence from
selected financial institution in Ghana. Research Journal of Finance and Accounting, 7(12),
pp.63-70.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Warren, A. and Gibson, C., 2013. Making things in a high-dollar Australia: the case of the
surfboard industry.