Starting A New Venture – MGMT 6630

Business Plan:
3D Additive Manufacturing
Technologies, Co. – 3-DAMTM

Joe Ott
7-18-2012
1. BUSINESS CONCEPT
1.1. INTRODUCTION / EXECUTIVE SUMMARY

This business plan will outline the scope and make-up of the 3-DAMTM company, the market, competition, and
financial outlook of the proposed company. The business name of the company to be formed will be “3D Additive
Manufacturing Technologies, Co.” otherwise known as 3-DAMTM. This name comes from a combination of the two
common names for the technology the company is based upon, “3D Printing” and “Additive Manufacturing”.

“With 3-DAMTM comes manufacturing freedom!!” – Joe Ott

The initial location of the first office should be located in Houston, TX. According to (Kotkin, Dec 2011) Forbes
Magazine4, this is currently the largest center of manufacturing in the US.

3-DAMTM will utilize the technologies of additive manufacturing and offer a “KinkosTM” style of service and
manufacturing to customers.

From ASTM Designation: F2792 – 10 - Standard Terminology for Additive Manufacturing Technologies 2,
additive manufacturing (AM), n—process of joining materials to make objects from 3D model data,
usually layer upon layer, as opposed to subtractive manufacturing methodologies, such as casting, forging,
and machining. Synonyms: additive fabrication, additive processes, additive techniques, additive layer
manufacturing, layer manufacturing, and freeform fabrication. It can encompass metals, polymers, and
electronics and apply to a range of structural and functional materials as well as components for an array
of defense and energy applications.

Why pursue additive manufacturing? There are many benefits in using additive manufacturing to make hardware
over conventional manufacturing5:
 Design flexibility
 No tooling constraints
 Allows complex models
 No hard tooling required
 No material lead time
 Automated process
 Reduced development expenses
 Faster concept design to functional component
 Reduced manufacturing costs
 Near wrought material properties
 Reduced product life cycle cost
 Reduced manufacturing time: hours/days/weeks vs. months
 Minimal secondary machining - near-net shape part
 Additive manufacturing is an emerging industry.

Some of the difficulties with additive manufacturing are:

 New technology – not everyone is familiar, technology evolving
 High barriers to entry – initial high start-up costs for equipment
 Material properties are still being defined
 Technical and process models are limited

3-DAMTM projects that it will be able to generate approximately $340,000 in sales in the first year of operation, in
its first store. This is projected to grow by 12.5% per year per store to $2,343,000 by YR3 as the company opens its
5th store. As 3-DAMTM will be in its initial growth phase it is not expected to make profit over the first 3 years as
the focus will be on explosive growth to the key manufacturing centers in the US.
The keys to success for 3-DAMTM will be focusing on the following core attributes:
 Flexibility – providing solutions for variety of customer and their unique requirements.
 Adaptability – have technology and capability for variety of needs.
 Sustained Growth – have capacity where and when a customer needs it.
 Technical “Know-how” – have understanding of how to use additive manufacturing technology to provide
best results.
 Speed – providing solutions faster and more efficient than anyone else.
 Funding – have cash and capital to sustain growth and profit.

The technology has such potential that President Obama announced a Pilot Institute for Manufacturing Innovation
in March 20126. As described in the announcement, "The pilot institute will host centralized, openly accessible
capabilities, the infrastructure needed to support advances in manufacturing (housed in one or more facilities)
through development, demonstration and evaluation of product and process technologies relating to the
technology area (additive manufacturing)."

This business plan was developed using SmartPlan Generator version 1.510
1.2. BUSINESS IDEA

“3-DAMTM is manufacturing freedom” – 3-DAMTM slogan

The business idea behind 3-DAMTM is to cross additive manufacturing technology with the “KinkosTM” concept. The
company will create business centers of excellence where people can bring or transmit, by web/email, a design
concept (usually in form of a CAD model) and have the design fabricated in a hours to days into a useable or near
usable part. Business would staff trained engineers and technicians to assist customers in selecting the correct
technology to manufacture their hardware. Staff would have the necessary skills to providing modifications to
designs to use additive manufacturing machines to make best part possible, set-up and operate machines, and
recommend / coordinate necessary post processing. All necessary raw materials and machines would be stored at
each store location.

1.3. BUSINESS MODEL

The business is envisioned to be a Sole Proprietorship during the initial start-up phase. The business would initially
target a small volume of jobs, applying a medium margin. As the business develops it would expect to grow into
medium volume with a medium margin.

A large market exists for this style of business. Additive manufacturing can compete/complement against all
traditional manufacturing methods (castings, forgings, machining, etc.) and many industries, such as automotive,
tooling, aerospace, medical/dental, hobbyist, could utilize additive manufacturing.

It is envisioned that customers would contact a local 3-DAMTM business center to initiate a job. A job may consist
of a request to assist in engineering an additive manufacturing solution as well as create some parts/hardware to
the customer’s necessary specifications. Additional post processing may also be required and would be
coordinated with outsource processing suppliers.

As part of a Diversification Growth Strategy 3-DAMTM would practice Forward Integration by getting in front of the
customer; the customer is the primary focal point. The customer would pay a fee for evaluation and non-
reoccurring engineering to evaluate as well as prep a part(s) for build. Additionally, a developmental build may
require 1-3 test builds to ensure necessary results. The customer would additionally be charged for materials,
machine time, and technician time to make hardware. Finally, a customer would be required to pay for any post
processing necessary that customer elects for business center to perform (this may be outsourced to strategic
partners and would be a facilitation fee in addition to supplier fees).

1.4. BUSINESS GOALS

The growth of 3-DAMTM will be of primary importance to the business’s success. To assist in growth the first two
years will be spent establishing a solid foundation.

2 years of operation:
 Increase market share – establish 4 stores in largest US manufacturing locations (Houston, TX; Milwaukee,
WI; Seattle, WA; San Antonio, TX)4
 Increase market penetration over time – continue to grow each store’s revenue at least 12.5% yearly (this
is the industry’s expected growth rate from 2011 to 2020).
 Expand the number of clients - commercial, residential, government, and industrial markets
 Establish new pricing incentives and promotions
 Build long lasting quality partnerships
 Establish relationships with local advertisement agencies (weekly/monthly flyers, radio, television, news
 papers, classifieds, college campuses/websites, Face-book, personal webpage)
 Join Committee F42 on Additive Manufacturing Technologies 1
6 years of operation:
 Increase market share – establish a store in 10 major US cities. Have plan developed to have 50 stores in
major US cities by 10 years of operations.
 Increase market penetration over time – continue to grow revenue at least 12.5% yearly, per store.

1.5. KEYS TO SUCCESS

The key to success for 3-DAMTM will be focusing on the following core attributes:

 Flexibility – providing solutions for variety of customer and their unique requirements. This will be
achieved by understanding each market’s unique needs (part sizes, quality level, common materials, etc.)
 Adaptability – have technology and capability for variety of needs. This will be achieved by procuring
additive manufacturing machines that initially will be able to serve the needs of the majority of markets.
 Sustained Growth – have capacity where and when a customer needs it. By targeting major
manufacturing cities and business and residential centers, 3-DAMTM will be at the fingertips of industry. By
taking internet and phone orders can provide service worldwide.
 Technical “Know-how” – have understanding of how to use additive manufacturing technology to provide
best results. Will train and educate sales engineers and operators in various additive manufacturing
technologies. Will provide continuing education as technologies change and mature.
 Speed – providing solutions faster and more efficient than anyone else. This will be achieved by
streamlining the store’s infrastructure using lean concepts and software integration. A lean value chain
will ensure post processing turn time is minimized.
 Funding – have cash and capital to sustain growth and profit. Aggressively campaign for funding via
government and private investment.

2. THE COMPANY
2.1. LEGAL STRUCTURE AND OWNERSHIP

3-DAMTM will be listed with the Internal Revenue Service as a sole proprietorship and will be privately owned. The
principle owner (and equity shareholder) will be Joe Ott. Minor equity shareholders will be silent partners based
upon funding investment agreements but will not be greater than 49% equity holding.

2.2. BOARD OF DIRECTORS/SECRETARY

Joe Ott will chair the board. As principle owner/CEO/CTO, Joe will have complete oversight and responsibility for
the company. As owner/CEO/CTO Joe will get paid upon the company making a profit in both cash and ownership
equity, to be set aside in an account for use if equity sold to investors. Payment will be determined after all other
monthly debts accounted.

Additional Board members would be advisors from various investment/venture capital groups.

2.3. ACCOUNTANT

Accounting and Human Resources will be outsourced to a 3rd party company and overseen by the CFO. The
company will be responsible for all day to day accounting and human resources activities, including accounts
receivable and payable, health and dental care, 401k management, and taxes, etc.

2.4. TECHNOLOGY TEAM will consist of a materials expert, a technology and processes researcher, and a Training
and Quality expert.
2.5. BRANCH MANAGEMENT – oversee local offices and sales functions.
 Board of Directors

CEO / CTO

CFO Technology Team Branch Managers

Figu

Accounting / HR

Figure 1. – Basic Organizational Structure

3. PRODUCTS / SERVICES
3.1. PRODUCT AND SERVICE SUMMARY

3-DAM will provide the following products and services:

 Plastic and metal parts and concepts, produced in a few hours or days, using additive manufacturing
technologies. Individual parts or part pieces will generally be as up to as large as the build chamber of
each machine allows and as small as the accuracy of the technology allows. The initial materials that will
be available for customers’ parts will be limited to those qualified by the vendor the anticipated plastic
and metal machines allow. Through technology development 3-DAMTM will look to grow this list.
 Evaluation and modification of designs/CAD and concepts for application to additive mfg.
 Coordination of post processing. Initially post processing will be outsourced. As 3-DAMTM grows it is
anticipated that machining/post processing resources will be added to the product and services summary
for each store.
 Metrology center – accurate measurement evaluation through surface and dimensional scanning using
laser and light machines.

3.2. THE CUSTOMER

The target customers are everyone from local hobbyist and enthusiast to large Fortune 500 companies needing
unique part developed and produced. There are many companies looking into using additive manufacturing to
improve their capabilities. GE, Pratt & Whitney, Boeing, and Lockheed-Martin are some larger companies all
looking to improve manufacturing by “printing” parts.

The current market doesn’t have local “to-go-to” places where customers can easily contact/interact with
someone who will help them take advantage of additive manufacturing for their requirements. All competition is
located in a few select locations and they provide services internationally to customers, usually targeting large
business. There is no one place to get all your materials and additive manufacturing methods and post-processing
under one roof.

3-DAMTM would provide a place for customers to have one-stop-shopping for their manufacturing. Customer(s) can
contact the business center by phone, web, or face-to-face. Sales engineers would be available to help customers
work through product development and iteration until the final product is ready. Pricing would be evaluated
based upon the necessary amount of engineering and development to make hardware, material considerations,
and post processing requirements.
Some of the unique benefits of a "Kinkos" style of additive manufacturing would be 5:
 Reduced Weight Structures - components no longer constrained by tooling definition/capability
 Integrated Part Consolidation - advanced single-piece designs
 Improved Performance - advanced features can be combined into designs
 Embedded Features – integral to part
 Tailored Materials - functionally gradient alloys, metal-composite components
 Speed - Additive manufactured parts often have weeks to months lead time reduction, in comparison to
parts mfg. by castings or forgings.
 Tooling - Additive manufactured parts often do not require tooling to be completed.
 Expertise - customers would have access to people with expertise in taking concept ideas from initiation
to final delivery.

Pictures courtesy of Rapid Quality Manufacturing5

3.3. COMPETITION

Other companies trying to adopt the “Kinkos” model are:

1. Mydea Technologies – digital model shop and an additive manufacturing and rapid prototyping provider.
http://www.mydeatechnologies.com/ (See Appendix 1).
Owners: Michael Siemer
Annual Sales: $520K
Competitor’s distribution channel: Internet
Competitor’s marketing strategy: Internet Sales
Products and Services: Product Development & 3-D CAD Modeling, Rapid Prototyping/Additive Fabrication,
Subtractive Rapid Prototyping, Rapid Tooling & Manufacturing
Competitors price strategy: mid to high cost.
Fees:
Design & Engineering
3-D CAD Modeling, 2-D to 3-D CAD Conversion, Reverse Engineering - $50/hr
Senior Product Design and Design for Assembly & Manufacturability - $100/hr
Rapid Prototyping & Production – By Quote
Rapid prototyping costs are driven by the size, materials and other factors.

2. Shapeways – 3D Printing company for designers and Do-It-Yourselfers. Helps people make and sell their items.
http://www.shapeways.com/ (See Appendix 2)
Owners: Peter Weijmarshausen
Annual Sales: $1.90M
Competitor’s distribution channel: Internet
Competitor’s marketing strategy: Internet Sales, Arts and Crafts forums, Web sales of clients’ products, Do-It-
Yourself market.
Competitors price strategy: Low to mid cost.
Products and Services: Tutorials, Shapeways Lab, Software, Metals and plastic fabrication, Online Sales.

The following companies are a selection that specialize in additive technology and would be competition for their
prospective sub-fields:
Morris Technologies - http://www.morristech.com/ – Selective Laser Sintering (SLS) metals
C&A Tool - http://www.catool.com/ – SLS metals and machine shop
Paramount Industries – http://www.paramountind.com/ - Stereolithography (SLA) and SLS of plastics
Materialise - http://manufacturing.materialise.com/ - a Belgian firm that uses additive manufacturing to make a
range of products, including medical devices.

3.4. PRODUCTION AND DELIVERY

The following are the anticipated costs considerations to produce the products and services 3-DAMTM would offer.
• Evaluation and Non-Reoccurring Engineering - Service cost is the salary of the sales engineer, the technician
labor per hour, and any machine time and materials cost to develop the builds and post processing
requirements.
• Make parts on-site - Cost of overhead, machine cost per hour, labor per hour for technicians, materials costs.
Additional cost is cost of any special handling concerns
• Post Processing - Service cost is the salary of the sales engineer plus, for internal processing: the technician
labor per hour, and any machine time; for external suppliers - cost of operation by suppliers
• Distribution will be accomplished using services such as FedEx and UPS to move hardware. In-process
hardware will be shipped overnight express between post processing centers. Shipment to the customer will
be express or overnight at the customer’s desire and billed accordingly.
• Costs will be minimized with implementation of lean manufacturing concepts to minimize holding costs,
turn time, etc. and value chain management for external suppliers.
3.5. TECHNOLOGY

The following technology is necessary for 3-DAMTM in order to create an output. These will be key technologies
that will enable 3-DAMTM to be competitive and maximize turn-time while keeping quality. These technologies are
generally very expensive capital investments. Additionally, these machines take up floor space and must have
special environmental controls / PPE. It will require significant investments to procure initial machines and supplies
and floor space.

Powder Bed Technologies - Powder Bed is the distribution of thin layer of powder (metal or thermoplastic) and
uses an energy source to sinter/melt the powder into solid form. Powder Bed Technologies offer high resolution,
medium volume, small to medium sized part capabilities. Two common methods are:
 Selective Laser Melting – laser beam power source in an inert atmosphere (nitrogen or argon)
 Electron Beam Melting – electron beam power source in a heated, vacuum environment

Deposition Technologies – Metal is introduced via powder nozzle or wire feed into an energy source directly at the
build location, which melts to metal into solid form. Deposition Technologies offer lower resolution, lower volume,
larger sized part capabilities. 3 common methods are:
 Laser Powder Deposition – laser/power nozzle combination
 Laser Wire Deposition – use of a continuous feed wire and laser energy source
 Electron Beam Wire Deposition – use of continuous feed wire and EB energy source

Specialized Software – (CAD/CAM, 3D model analysis, project/customer management) will be required to

seamlessly integrate customer models between additive mfg. platforms and required post processing
technologies.

Pictures courtesy of EOS (http://www.eos.info/en/home.html), Arcam (http://www.arcam.com/), and Optomec

(http://www.optomec.com/)
3.6. REGULATORY ISSUES

Additive Technologies are generally considered "Green Technology". But due to the fine particle size of powders
used in manufacture special PPE and air filters will be required. Inert gases, such as argon, will be used in the
manufacture of 3D parts. This may require a permit.

Other regulatory considerations will be protection of Intellectual Property of customers. As this technology can
easily be used to copy designs, infringement must be evaluated and considered 7. Also, product liability should be
accounted for and proper insurance ($1Million minimum) carried in the case of a bad part causing damage to
persons or property7 or litigation.

3.7. FUTURE PRODUCTS

New products/services will need to be included in the 3-DAMTM portfolio in the future. As the additive
manufacturing technology continues to grow and change the company will need to grow and change with it. This
will require yearly review and evaluation of existing and new technologies. An evolving plan will be managed by
the Technology Team to review current technology capabilities, requirements, and customer needs and feedback.
Recommendations will be made to 3-DAMTM management for necessary re-tooling and development on a
quarterly basis. New machines may be leased or bought outright.

Among the current considerations for individual store growth the following will be of primary importance to round
out the business concept and should be incorporated with-in the first 2-3 years.
 Tool and Finishing Shop – a tooling and finishing shop is envisioned to be a necessary post processing
requirement for the current portfolio of additive manufacturing technologies and market needs. While
the current plan is to outsource the addition of a machine and finishing shop would provide the necessary
steps “under one roof” that 3-DAMTM needs for the “Kinkos” business concept.
 Stress Relief, Heat Treat, HIP – these are also additional post processing steps necessary to provide metals
customers what they need for their specific requirements.
 Grow metrology center – the metrology (measurement) center will be the focal point in each store where
production validation and quality will be evaluated for each part produced. Ensuring accurate
measurements and testing will be critical to customer satisfaction.

As the company develops it is expected that Intellectual Property will be developed. This will most likely be in
form of integrating software that manages models from customer delivery through final product, and materials,
machine and process capability and expertise. As necessary, patents and trade secrets will be filed and licensed as
opportunities are found.

4. THE MARKET
4.1. MARKET ANALYSIS

From A FRAMEWORK FOR REVITALIZING AMERICAN MANUFACTURING11, “In 2008 manufacturing produced $1.4
trillion in national income, making it one of the largest sectors in the American economy. The National Association
of Manufacturers has estimated that, ‘every $1.00 in manufactured goods generates an additional $1.37 worth of
additional economic activity - more than any other economic sector.’ This also helps create jobs – one study found
that each job in manufacturing supported three jobs in the rest of the economy. American manufacturing has been
among the most successful in the world. Figure 2 (below) demonstrates that U.S. manufacturing output began to
increase most rapidly after 1994, propelled by rapidly increasing productivity. This improvement is unmatched by
any other G7 country.
Picture from A FRAMEWORK FOR REVITALIZING AMERICAN MANUFACTURING11

A sub-category of manufacturing, additive manufacturing had a total of market size of $1.7 billion worldwide in
2011, according to a new industry report from Wohlers Associates Inc. Wohlers Associates said the additive
manufacturing industry has grown in double digits for 15 of its 24 years. The industry declined by 9 percent in
2009, because of the recession, but then rebounded in 2010 to grow 24.1 percent, to $1.3 billion. New advances in
metals and design tools are fueling new businesses to do additive manufacturing, the report said. Thirteen
companies in Europe now make additive manufacturing systems, and Wohlers said Europe is a hotbed of metal-
based AM equipment. Direct manufacturing—using additive manufacturing to make finished products, not just
prototypes—has grown from virtually zero in 2003 to 24 percent of the industry’s total revenues in 2011.”

Emerging Industry
Additive manufacturing can be considered an emerging industry in the US. From A NATIONAL STRATEGIC PLAN
FOR ADVANCED MANUFACTURING12, the National Science Foundation states that “Advanced manufacturing is
emerging as an especially potent driver of future economic growth. A distinguishing feature of advanced
manufacturing is its continual improvement in processes and rapid introduction of new products. It is this
paradigm-shifting aspect of advanced manufacturing that has the most potential to spin off entirely new industries
and lead to production methods that are most likely to “stick” in the United States because they are hard to
imitate.

The technology has such potential that President Obama announced a Pilot Institute for Manufacturing Innovation
in March 20126. As described in the announcement, "The pilot institute will host centralized, openly accessible
capabilities, the infrastructure needed to support advances in manufacturing (housed in one or more facilities)
through development, demonstration and evaluation of product and process technologies relating to the
technology area (additive manufacturing)."
4.2. TARGET MARKET SEGMENT

Competitors are targeting select markets in plastics or metal or both, with low to medium scale production. No
operation is looking to bring all the pieces together. 3-DAMTM will target this market. Potential Customers can be
divided into 3 categories:

Small Businesses -
 2+ years old (generally wouldn't be start-ups in their first year)
 Income - Have manufacturing costs >$1000 per part.
 Need - need fast parts made, short runs
 Education - do not need to be educated in how to make the parts but need to understand hardware end
requirements.
 Work - manufacturing, research, engineering, automotive, etc.
 Geographical location - in key starting cities, some internet sales.

Large Business -
 2+ years old
 Income - Have manufacturing costs >$1000 per part.
 Need - need fast parts made, short runs, development iterations
 Education - do not need to be educated in how to make the parts but need to understand hardware end
requirements.
 Work - manufacturing, research, engineering, automotive, etc.
 Geographical location - in key starting cities, some internet sales.

Hobbyists -
 Age - 16 years or older
 Income - able to afford part costs between $100 and $2000.
 Need - generally have a concept they want to make or need a replacement part for one that broke
 Gender - male and female
 Education - majority expected to have some college and / or trade school
 Work - professionals and trades
 Geographical location – key US manufacturing centers / cities, some internet sales.
Potential Customer Year 1 Year 2 Year 3 CAGR

Sm. Business 100 513 677 61,30%

Lg. Business 10 52 68 61,48%

Hobbyists 310 1 590 2 098 61,29%

Total 420 2 155 2 843 61,30%

Figure 3. – Expected Number of Customers in Each Market Segment - Expect average growth of 12.5% per year
per store.

4.4. MARKET NEEDS

The current US manufacturing market is still recovering from the 2009 recession and outsourcing due to
Globalization. TJ McCue from his May 2012 article in Forbes9 states with “financial hardships for many American-
based manufacturers, additive manufacturing technologies offer a way for companies to get started on a
shoestring”. Additive is the solution for America’s manufacturing gap with the rest of the world.

Also, the current additive manufacturing market doesn’t have a local “to-go-to” place for customers interested in
taking advantage of the technology. All competition is located in a few select locations and they provide services
internationally to customers. There is no one place to get all your materials and additive manufacturing methods
and post processing under one roof. Additionally, there is a need for fast development and production of
small/short runs.

4.5. TRENDS

This is a growing market. Technology growth and development of processes and materials will play a big role in
market. Standards and regulation will provide direction for the industry and technology. “The March 2009 RAM
workshop, resulted in 26 research recommendations. Among them13:
1) Produce a new foundation for CAD systems to overcome modeling limitations associated with building AM
parts,
2) Create closed-loop and adaptive control systems with feed-forward and feedback capabilities for AM
machines,
3) Develop and identify sustainable (green) materials that are recyclable, reusable, and biodegradable,
4) Develop training programs with certifications for industry practitioners,
5) Develop and adopt internationally recognized standards, such as those initiated by ASTM International, and
6) Establish a national test bed center with AM machines and expert users to leverage equipment and human
resources in future research.”

4.6. GROWTH POTENTIAL

According to TJ McCue in his Mar 2012 Forbes Magazine8 article he states, “Additive Manufacturing, aka 3D
Printing, will reach $3.1 billion worldwide by 2016 and $5.2 billion by 2020.” If 3-DAMTM can capture even 1% of
this market that would be $31 million dollars in revenue. 5% growth in revenue the next year would result in
$32,550,000 of revenue, per store.

5. THE INDUSTRY
5.1. INDUSTRY ANALYSIS

From A FRAMEWORK FOR REVITALIZING AMERICAN MANUFACTURING11, “A sub-category of manufacturing,

additive manufacturing had a total of market size of $1.7 billion worldwide in 2011, according to a new industry
report from Wohlers Associates Inc. Wohlers Associates said the additive manufacturing industry has grown in
double digits for 15 of its 24 years. The industry declined by 9 percent in 2009, because of the recession, but then
rebounded in 2010 to grow 24.1 percent, to $1.3 billion. New advances in metals and design tools are fueling new
businesses to do additive manufacturing, the report said. Thirteen companies in Europe now make additive
manufacturing systems, and Wohlers said Europe is a hotbed of metal-based AM equipment. Direct
manufacturing—using additive manufacturing to make finished products, not just prototypes—has grown from
virtually zero in 2003 to 24 percent of the industry’s total revenues in 2011.”

5.2. DISTRIBUTION

Business would staff trained engineers and technicians to assist customers in selecting the correct technology to
manufacture their hardware. Staff would have the necessary skills to providing modifications to designs to use
additive manufacturing machines to make best part possible, set-up and operate machines, and recommend /
coordinate necessary post processing. Agreements would be set up with suppliers to support post processing
requirements initially.

Distribution will be accomplished using services such as FedEx and UPS to move hardware. In-process
hardware will be shipped overnight express between post processing centers. Shipment to the customer will be
express or overnight at the customer’s desire and billed accordingly.
Supplies would be managed with Pull-Systems for the various metals and plastic raw materials. Service
contracts with manufacturers would keep machines running at peak efficiency.
6. SALES
6.1. SALES STRATEGY

It is envisioned that customers would contact a local 3-DAMTM business center to initiate a job. A job would be
evaluated on the spot for low complexity models/hardware and with-in 4 days for complex jobs. Quotations
would be valid for 30 days.

Customer information and projects would be kept in a database. Sales engineers would be able to reference past
jobs to speed up processing of repeat customers. Jobs would look to complete with-in hours for low complexity
low volume jobs to a month for higher complexity jobs.

6.2. PRICE STRATEGY

Pricing would factor in the costs of overhead, materials, and per hour cost for machines and personnel. The
customer would pay a variable fee (set on number of required hours and difficulty) for evaluation and non-
reoccurring engineering to evaluate as well as prep a part(s) for build. The customer would additionally be charged
for materials, machine time, and technician time to make hardware. Finally, a customer would be required to pay
for any post processing necessary that customer elects for business center to perform (this may be outsourced to
strategic partners and would be a facilitation fee in addition to supplier fees). A profit mark-up of 30% will be
added to each job.

6.3. PROMOTION STRATEGY

Sales will be generated through advertisement and campaigns. The campaign will utilize TV, trade journals, and the
internet (web pages, FaceBook, etc.). Highlights of ads will target design freedom, no or low tooling, and speed.
Additionally, small to large manufacturing companies will be approached.
“3-DAMTM is manufacturing freedom” – 3-DAMTM slogan

A marketing group will be selected to assist in the marketing campaign on a yearly contract. A $100k budget will
be set for marketing.

6.4. SALES FORECAST

Sales are based upon forecast for 3 major products/services that 3-DAMTM will provide: Sales Engineering,
Fabricated Metals, and Fabricated Plastics.
Sales were forecasted by projected the amount of sales revenue generated by the average increase in customers
each month times the expected revenue each customer would generate. YR 2 accounts for 4 stores in key cities.
YR 3 accounts for 5 stores in key cities. Expect average growth of 12.5% per year for each store. These numbers
are based upon a best scenario.
Cost of sales is the overhead for the sales engineers and technicians plus an estimated monthly operating cost for
the metal machines of $4000 and plastic machines of $3000.
 Sales
Forecast M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 YR1 YR2 YR3
Sales
Engineering $0 $0 $0 $0 $2,000 $5,000 $10,000 $10,000 $15,000 $18,000 $18,000 $20,000 $98,000 $503,000 $664,000
Powder
Metal $0 $0 $0 $0 $0 $0 $4,000 $12,000 $18,000 $30,000 $40,000 $40,000 $144,000 $740,000 $975,000
Powder
Plastic $0 $0 $0 $0 $1,000 $5,000 $8,000 $15,000 $25,000 $10,000 $20,000 $20,000 $104,000 $533,000 $704,000
Total: $346,000 $1,776,000 $2,343,000
Table 1: Sales Forecast

Sales
Forecast M M M M
Costs 1 2 3 4 M5 M6 M7 M8 M9 M10 M11 M12 YR1 YR2 YR3
Sales
Engineeri $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $30,00 $240,00 $525,00 $620,62
ng $0 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 5
Powder
Metal $0 $0 $0 $0 $0 $0 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $24,000 $70,000 $82,750
Powder
Plastic $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $24,000 $52,500 $62,062
$288,00 $647,50 $765,43
Total: 0 0 7
Table 2: Sales Forecast Costs

Sales Year 1 Year 2 Year 3

Sales Engineering 98 000 503 000 664 000

Powder Metal 144 000 740 000 975 000

Powder Plastic 104 000 533 000 704 000

Total sales 346 000 1 776 000 2 343 000

Direct costs, sales

Sales Engineering 240 000 525 000 620 625

Powder Metal 24 000 70 000 82 750

Powder Plastic 24 000 52 500 62 062

Total, direct costs, sales 288 000 647 500 765 437
Table 3: Sales Forecast and Costs by YR
Figure 4. - Sales monthly

Figure 5. - Sales yearly

7. THE MARKETING PLAN
7.1. MARKETING PROGRAMS

As part of a Diversification Growth Strategy 3-DAMTM would practice Forward Integration. As the customer is the
focal point for the business model, 3-DAMTM offices will be targeted close to the customers. Customers will be
contacted through advertisement and campaigns. The campaign will utilize TV, trade journals, and the internet
(web pages, FaceBook, etc.). Highlights of ads will target design freedom, no or low tooling, and speed.
Additionally, small to large manufacturing companies will be approached.
“3-DAMTM is manufacturing freedom” – 3-DAMTM slogan

A marketing group will be selected to assist in the marketing campaign on a yearly contract. A $100k budget will
be set for marketing. The marketing campaign will start in June 2013 and continue through December 2013.

7.2. PARTNERSHIP

The business would initially depend upon partnerships and/or cooperation with machine shops, until the machines
and technicians can be funded and added to the services 3-DAMTM can provide.
Alliances and partnerships can also be formed with engineering and industrial firms looking to outsource their
manufacturing work or traditional machining houses can’t make the parts their customers’ desire.

8. MANAGEMENT AND EMPLOYEES

8.1. MANAGEMENT TEAM AND KEY PERSONNEL

CEO / CTO
Joe Ott will perform as CEO/CTO. Joe will have complete oversight and responsibility for the company as well as
technical authority. At 37, Joe is nearing completion of his MBA and MSME degrees. Joe has experience in additive
manufacturing, specializing in the aerospace industry and requirements. Joe has extensive project management
qualifications and is a registered Engineer-In-Training (EIT) candidate in the state of MA. Joe currently works at
Pratt&Whitney as an Integrated Product Team Lead for the Engineering Integrated Solutions Group / Engineering
Innovation Center.

CFO
The CFO will be hired after the company is funded. The CFO should have the following qualifications:
Under the direction of the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) has direct oversight of
the following reporting line: Accounting, Accounts, Communications, Purchasing, Printing & Duplicating,
Information Management, Management Information Systems.

The CFO has overall management responsibilities for Fiscal and Business Services and has legal responsibilities as
the internal auditor for the company. This position is accountable for the development and implementation of
fiscal systems, budgeting processes, financial reporting, and fiscal policies and procedures.

Ten years of progressively responsible leadership positions with at least five years’ experience in manufacturing
and/or start-up csompany accounting at a managerial level. Familiarity with healthcare reimbursement systems.
Successful track record in the management of people, budgets, systems, and processes. College graduate with
major in Accounting/Finance. MBA and/or CPA required.

Accounting and Human Resources

Accounting and Human Resources will be outsourced to a 3rd party company and overseen by the CFO. The
company will be responsible for all day to day accounting and human resources activities, including accounts
receivable and payable, health and dental care, 401k management, and taxes, etc. The company should have
experience with accounting and HR in all US states. It would be preferred if the company has experience with
start-up companies.
Technology Team – Materials Engineer, Technology Researcher, Training/Quality
The Technology Team will have responsibility for moderately complex engineering projects, and will work
independently or with cross-functional disciplines on key tasks associated with a project. Serves as consultants,
providing technical information and engineering recommendations that assist various projects and processes and
materials. Also coaches and trains less experienced engineers and technicians. Contributes effectively towards
team goals and influences the work group and works beyond routine nature of tasks utilizing specialized
knowledge to support internal and external customers. Can be assigned as Technical Leaders for large projects or
multiple small projects.

Material Engineer: Provides material selection and related manufacturing process recommendations to improve
quality, performance, cost reduction, product reliability, and/or standardization through analysis of designs and
problem solving techniques.
Preferred Qualifications
• M.S. in Materials Science / Metallurgical Engineering or equivalent degree from an accredited university
• Basic knowledge of polymer component design in transportation applications
• Non-destructive testing experience or certification. Basic knowledge of ferrous metallurgy, heat treating, and
failure analysis

Technology Researcher: Reviews and evaluates additive manufacturing technologies for application to business.
Participates in the creation, implementation, and administration of vehicle group policies, procedures, and work
instructions. Utilizes the engineering Maturity Model concept to drive personal and regional process and
knowledge development. Understands design, development, and failure analysis through assigned engineering
projects. Applies fundamental engineering practices and decision making for problem solving.
Preferred Qualifications
• M.S. in Mechanical or Project Engineering or equivalent degree from an accredited university
• Manufacturing or additive manufacturing experience or certification
• Project management experience / PMI certification

Training / Quality: Maintains understanding of the varied and balanced needs of cost competitiveness, product
reliability / robustness, innovation, constraints relating to the global availability of material and manufacturing
processes. Local expert in assigned product / process. Educates and manages company Health and Safety:
Complies with requirements of the Quality and Environmental Management Systems.
Preferred Qualifications
• M.S. in Quality and Training or equivalent degree from an accredited university
• Basic knowledge of lean / 6 sigma
• Non-destructive testing experience or certification
• EH&S experience or certification

Branch Manager(s) – oversee branch offices and perform sales

As an outside sales professional, the primary responsibility is to develop new client relationships in the assigned
territory while growing existing relationships with assigned clients. You will sell the benefits of Additive Fabrication
for the purpose of developing a pipeline of qualified prospects, and to achieve your sales quota. Sales will address
manufacturing as well as other traditional additive fabrication needs. Interfacing with and oversee store personnel,
customers, and equipment representatives will be required for ensuring the integration of the product solution
and addressing the customer’s additive fabrication requirements. You will be measured against key performance
indicators and quota attainment on a monthly basis.

PRIMARY RESPONSIBILITIES:
·Through telemarketing, prospecting, account calls, demonstrations and marketing activities, generate demand
and pipeline for assigned products.
·Achieve assigned gross profit target each month by selling solutions to discreet & process manufacturing
companies.
·Investigate and understand the internal business processes of potential clients; and strategize, present and
demonstrate a tailored technology solution.
·Build relationships with key executives (CEO, CFO, and Technology Team) and fellow Branch Managers.
·Hold a technical understanding of customer’s business objectives in order to map a strategy consisting of
machines, materials, training, and implementation as a solution to those business objectives.
·Develop gross profit, revenue & accurate forecast in coordination with CEO.

MINIMUM REQUIRED SKILLS & EXPERIENCE:

·Consistent “Top 10%” performer
·2-4 years of selling experience
·2+ years of sales experience with a manufacturing discipline a plus
·Successful track record
·Computer Skills in MS Office, CRM, Web

MINIMUM EDUCATION REQUIREMENTS:

4-year college degree or equivalent

8.2. EMPLOYEES

 Sales engineers – customer interface, engineers marry up technology to customer needs. There will be 2-
3 per store.
 CAD and Build technicians – modify designs to make technology friendly, operate and run machines.
There will be 1 per machine and two CAD operators per store.
 Post processing technicians - provide any necessary post processing and coordination. There will be one
per store.
 Shipping/Receiving – ship and receive hardware, supplies, etc. There will be one per store.

Personnel M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

CEO/CTO $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666
CFO $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666.67 $6,666
Technology
Team $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000
Branch
Managers $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833.33 $5,833
Sales Eng.
And Techs $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000
Total:
Table 4: Monthly Payroll

Personal Year 1 Year 2 Year 3

CEO/CTO 80 004 80 000 80 000

CFO 80 004 80 000 80 000

Technology Team 240 000 240 000 240 000

Branch Managers 69 996 280 000 350 000

Sales Eng. and Techs 360 000 360 000 1 440 000

Total wages 830 004 1 040 000 2 190 000

Table 4: Yearly Payroll
8.3. FUTURE

3-DAMTM will have 1 initial store in a major manufacturing center of USA. The plan will be to grow to 2 stores by
end of second year. The next goal will be to grow the business to have stores in each of 5 major manufacturing
centers in USA in 5 years. The long term plan will be to grow to have one store in 50 major cities in 10 years.

8.4. KEY FIGURES

We plan to hire 3 sales engineers and 3 technicians and 1 Branch Manager in the first year for the first store.
By year two, we plan to hire 9 sales engineers, 9 technicians, and 3 branch managers to staff 3 additional stores.
We plan to implement an annual training curriculum for each person for updating their technical knowledge.

9. ACTIVITY PLAN
This section describes some activities that will be needed to implement the whole or parts of the business plan.

Order and Install Machines – machines and installation at $1,000,000 a-piece. 1 plastics, 2 metals, 1 metrology
and inspection, 1 oven and autoclave = $5,000,000
Store – 15,000 sq. ft. * $3.523 per foot per year = $52,800. Plus $1,000,000 for upgrades and office requirements.
Equals $1,052,800.00
Hire Accounting / HR - $100,000
Supplies - $100,000
Advertising Campaign - $100,000

Activity Start date Stop date Budget Responsible Department

Order and Install Machines 03/01/2013 06/01/2013 5 000 000 CTO Technology Team

Store 03/01/2013 06/01/2013 1 052 800 CTO CEO

Hire Accounting / HR 01/02/2013 05/31/2013 100 000 CFO CEO

Supplies 03/01/2013 06/01/2013 100 000 CEO CEO

Advertising Co. 04/01/2013 06/01/2013 100 000 CEO Branch Managers

Total 6 352 800

Table 5: 2013 Activities
Figure 6. – Activities Calendar
10. FINANCE AND ECONOMY FIGURES

10.1 STARTUP FUNDING

Start-up Costs

Research Technology 100 000

Research Store Location 200 000

Permits and Fees 100 000

Marketing Study 100 000

Total Start-up Costs 500 000

Start-up funding

Bank Loans 3 000 000

Bank Loans 2 000 000

Other Investors 2 000 000

Grants 2 000 000

Government Loans 1 000 000

Total Start-up funding 10 000 000

Total Equity 9 500 000

Table 6: Start-Up Funding

Figure 7. – Financed Capital vs. Remaining Capital After Costs

The following are “Seed Capital funding expenses” that will be incurred prior to the business starting:
 Research Technology – $100,000 – this is to research the best metal, plastics, and metrology machines
necessary to support the business concept.
 Research Store Location – $200,000 – This is to find and fund the initial store location plus other 3
locations for next 3 stores.
 Permits and Fees – $100,000 – This will fund necessary permits and fees for establishing the store in first
store location.
 Marketing Study - $100,000 – This will fund a marketing study for the Houston, TX area specifically and US
in general to help target large businesses, small business, and hobbyists.

The following describes all the “Start-up through Second Stage” funding (existing and needed) for the project:
 Bank Loans – $3,000,000 – Secured against the procured equipment. Equipment, Real-estate, and Long-
term loans.
 Angel Investors – $2,000,000
 Other Investors – $2,000,000 – Informal Risk Capital, Venture Capital
 Grants – $2,000,000 – SBIR - Phase I and Phase II, Fed, State, Local.
 Government Loans - $1,000,000 – SBA (504, SBA), etc.
Total: $10,000,000
Third stage (growth) funding would be necessary for expansion beyond the first store and would be necessary at
last quarter 2013.

The following describes the long term assets. Depreciation period was calculated at minimum 3 years.
Smartplan10 calculate a depreciation of 1/5 per/year as standard.
Yr1 Yr2 Yr3
Equipment – $5,000,000 $20,000,000 $25,000,000
Real-estate – $1,052,800 $ 4,211,200 $ 5,264,000
Total: $6,052,800 $24,211,200 $30,264,000

The following describes long-term liabilities; debts that would be paid back over a period of more than a year.
Interest Amortization/Yr
Bank Loans – $3,000,000 6% 12/1
Angel Investors – $2,000,000 4% 12/1
Other Investors – $2,000,000 4% 12/1
Government Loans – $1,000,000 3% 12/1
*interest rates and amortization/yr. have been assumed.

Profit and loss expenses – other anticipated costs (short term liabilities) for the operation of your business.

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 YR1 YR2

Accounting /
HR /
Advertising
Services $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $100,000 $200,000
Supplies
(office and
operating) $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $8,333 $100,000 $400,000
Utilities,
Web, IT,
Phone $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $20,000 $96,000
Insurance $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $83,333 $1,000,000 $4,000,000
Maintenance
Plan $0 $0 $0 $0 $0 $100,000 $0 $0 $0 $0 $0 $0 $100,000 $400,000
Total: $1,320,000 $5,096,000
Table 7: Profit and Loss Monthly Expenses
10.2 PROFIT & LOSS TABLE
Year 1 Year 2 Year 3

Sales 346 000 1 776 000 2 343 000

Sale costs 288 000 647 500 765 437

--------------- --------------- ---------------

BTO profit 58 000 1 128 500 1 577 563

BTO profit % 17 % 64 % 67 %

Expenses

Salaries 830 004 1 040 000 2 190 000

Additional Salaries costs 273 901 343 200 722 700

Marketing and activity costs 0 6 352 800 0

Depreciation 1 210 560 6 052 800 12 105 600

Accounting / HR / Advertising Services 99 996 200 000 200 000

Supplies (office and operating) 99 996 400 000 500 000

Utilities, Web, IT, Phone 20 000 96 000 120 000

Insurance 999 996 4 000 000 5 000 000

Maintenance Plan 100 000 400 000 500 000

Research Technology 100 000 0 0

Research Store Location 200 000 0 0

Permits and Fees 100 000 0 0

Marketing Study 100 000 0 0

--------------- --------------- ---------------

Sum direct costs 4 134 453 18 884 800 21 338 300

Financial costs -0 -0 -0

Profits before tax -4 076 453 -17 756 300 -19 760 737

Profit before tax % -1 178 % -1 000 % -843 %

Table 8: PROFIT & LOSS TABLE
Figure 8. - Net profit monthly

Figure 9. - Net profit yearly

Figure 10. - Gross margin monthly

Figure 11. Gross margin yearly

10.3 BALANCE SHEET
Year 1 Year 2 Year 3

Current assets

Liquid assets 1 297 208 -9 265 893 -22 254 593

Sales 346 000 1 776 000 2 343 000

Total current assets 1 643 208 -7 489 893 -19 911 593

Fixed assets

Fixtures and fittings & fixed assets 6 052 800 29 264 000 54 528 000

Acc depreciation fixtures & fittings/fixed assets 1 210 560 7 263 360 19 368 960

Total fixtures and fittings/fixed assets 4 842 240 22 000 640 35 159 040

Total assets 6 485 448 14 510 747 15 247 447

Liabilities

Share capital & risk capital 10 000 000 10 000 000 10 000 000

Accounts payable 288 000 647 500 765 437

Accrued taxes 273 901 343 200 722 700

Long-term liabilities 0 0 0

Balanced profit/loss 0 -4 076 453 3 520 047

Total liabilities & equity capital 10 561 901 6 914 247 15 008 184

Profit for the year -4 076 453 7 596 500 239 263
Table 9: BALANCE SHEET

YR1 YR2 YR3

Current Ratio = 0.16 -1.08 -1.33 *indicates low liquidity

Debt Ratio = 6.43 -0.92 -0.75 *indicates business while taking on more debt is
working out of debt

Debt to Equity = 1.32 *High capital industry/business

Net Profit Margin = -11.78 4.28 0.10 *indicates high initial risk but business becoming more
stabile.

ROI = -0.63 0.52 0.02*indicates high initial risk but business becoming more
stabile.
Generally these ratios are stating that the business will be very risky at the onset due to the high amount of debt
the company will have. This debt will continue to grow as the company expands but the expansion and income
will stabilize the company as it grows out of debt in its first decade.

These ratios can be compared (Appendix 3) against just the initial store. We see the same risk but slower recovery,
though more stability.
10.4 CASH FLOW ANALYSIS
Year 1 Year 2 Year 3

Liquid assets, incoming 10 000 000 6 644 130 -6 790 066

Liquid assets obtained from activities

Sales 346 000 1 776 000 2 343 000

Other earnings 0 0 0

Total earnings from activities 346 000 1 776 000 2 343 000

Other liquid assets obtained

VAT and tax refunds 612 082 2 859 146 2 479 729

Increase in accounts payable 0 0 0

Increase in short-term liabilities 0 0 0

Increase in long-term liabilities 0 0 0

Sale of current assets 0 0 0

Sale of fixed assets 0 0 0

New capital increase 0 0 0

Total liquid assets obtained 958 082 4 635 146 4 822 729

Liquid assets spent

Cash expenditure 2 937 992 13 136 300 9 275 437

Total expenditure from activities 2 937 992 13 136 300 9 275 437

Other liquid assets spent

VAT and tax payments 323 160 721 842 1 253 200

Reduction in short-term liabilities 0 0 0

Reduction in long-term liabilities 0 0 0

Purchase of current assets 0 0 0

Purchase of fixed assets 1 052 800 4 211 200 5 264 000

Total liquid assets spent 4 313 952 18 069 342 15 792 637

Net cash flow -3 355 870 -13 434 196 -10 969 908

Liquid assets, outgoing 6 644 130 -6 790 066 -17 759 975
Table 10. CASH FLOW
11. NETWORK & SERVICE PROVIDERS
11.1 BANK

3-DAMTM will initially work with USAA Bank, located in TX. This is an all purpose international bank that has no
branches, that instead works entirely online.

11.2 ACCOUNTANT

Accounting and Human Resources will be outsourced to a 3rd party company and overseen by the CFO. The
company will be responsible for all day to day accounting and human resources activities, including accounts
receivable and payable, health and dental care, 401k management, and taxes, etc.

11.3 WEB-& WEBHOSTING AGENCY

A web hosting firm will be solicited once a location has been determined for the initial Houston, TX store.

11.4 BUSINESS DEVELOPMENT SERVICE

3-DAMTM will contact the Houston, TX local small business administration business development services upon
business starting.

11.5 ADVERTISING- & MARKETING AGENCY

A marketing group will be selected to assist in the marketing campaign on a yearly contract. The initial marketing
group should be experience in a regional to national campaign, working with manufacturing, and start-up
businesses.

A $100k budget will be set for marketing. The marketing campaign will start in June 2013 and continue through
December 2013.

11.6 INVESTORS & VENTURE FIRMS

11.7 IT PROVIDER

An IT firm will be solicited once a location has been determined for the initial Houston, TX store.

11.8 INSURANCE COMPANY

3-DAMTM will initially work with USAA Bank, located in TX. This is an all purpose international insurance company
that has no branches, that instead works entirely online.

11.9 NETWORKS WITHIN YOUR BUSINESS

3-DAMTM will join Committee F42 on Additive Manufacturing Technologies 1.

3-DAMTM will also network in each city’s chamber of commerce and register with the Small Business
Administration.
REFERENCES:
1. "ASTM International Technical Committee F42." ASTM International Technical Committee F42. N.p., n.d.
Web. 17 July 2012. <http://www.astm.org/COMMITTEE/F42.htm>.
2. "Designation: F2792 − 12a - Standard Terminology for Additive Manufacturing Technologies." ASTM F2792
- 12a. ASTM, 17 July 2012. Web. 2012.
<http://enterprise.astm.org/filtrexx40.cgi?+REDLINE_PAGES/F2792.htm>.
3. "Industrial Space Cost Comparison." Greater Houstono Partnership. Cushman & Wakefield, Third Quarter
2011, 2011. Web. June 2012. <http://www.houston.org/pdf/research/17CW005.pdf>.
4. Kotkin, Joel. "Heavy Metal Is Back: The Best Cities For Manufacturing." Forbes. Forbes Magazine, 15 Dec.
2011. Web. 17 July 2012. <http://www.forbes.com/sites/joelkotkin/2011/12/15/heavy-metal-is-back-the-
best-cities-for-manufacturing/>.
5. Liechty, Eli. "Commercial Benefits of Metals Additive Manufacturing for Aerospace Production." Midwest
SAMPE. Mar. 2011. Lecture. www.midwestsampe.org/content/files/events/.../Metals%20Liechty.pdf
6. "Manufacturing.GOV." National Network for Manufacturing Innovation (NNMI). N.p., n.d. Web. 17 July
2012. <http://www.manufacturing.gov/amp/pilot-institute.html>.
7. Marcus, Adam. "3D Printing: The Future Is Here." 3D Printing: The Future Is Here. The Technology
Liberation Front, 10 June 2011. Web. 17 July 2012. <http://techliberation.com/2011/06/10/3d-printing-
the-future-is-here/>.
8. McCue, TJ. "3D Printing Industry Will Reach $3.1 Billion Worldwide by 2016." Forbes. Forbes Magazine, 27
Mar. 2012. Web. 17 July 2012. <http://www.forbes.com/sites/tjmccue/2012/03/27/3d-printing-industry-
will-reach-3-1-billion-worldwide-by-2016/>
9. McCue, TJ. "Additive Manufacturing Will Change in the Next 5-10 Years." Forbes. Forbes Magazine, 02
May 2012. Web. 17 July 2012. <http://www.forbes.com/sites/tjmccue/2012/05/02/additive-
manufacturing-will-change-in-the-next-5-10-years/>.
10. Smartplan Generator Ver. 1.5- http://download.cnet.com/Smartplan-Generator/3000-2076_4-
10708683.html
11. USA. EXECUTIVE OFFICE OF THE PRESIDENT. EXECUTIVE OFFICE OF THE PRESIDENT. A FRAMEWORK FOR
REVITALIZING AMERICAN MANUFACTURING. Http://www.whitehouse.gov/, Dec. 2009. Web. June 2012.
<http://www.whitehouse.gov/sites/default/files/microsites/20091216-maunfacturing-framework.pdf>.
12. USA. National Science and Technology Council. Executive Office of the President. A NATIONAL STRATEGIC
PLAN FOR ADVANCED MANUFACTURING. Http://www.whitehouse.gov/, Feb. 2012. Web. June 2012.
<http://www.whitehouse.gov/sites/default/files/microsites/ostp/iam_advancedmanufacturing_strategic
plan_2012.pdf>.
13. Wohlers, Terry. "Worldwide Trends in Additive Manufacturing." RapidTech 2009: US-TURKEY Workshop
on Rapid Technologies. Wohlers Associates, Inc, 2009. Web. June 2012.
<http://iweb.tntech.edu/rrpl/rapidtech2009/wohlers.pdf>.
Appendix 1: Mydea Technologies
Appendix 2: Shapeways, Inc.
APPENDIX 3: Single Store (Houston, TX) FINANCE AND ECONOMY FIGURES
TARGET MARKET SEGMENT
Potential Customer Year 1 Year 2 Year 3 CAGR

Sm. Business 100 113 127 6,16%

Lg. Business 10 12 13 6,78%

Hobbyists 310 350 395 6,25%

Total 420 475 535 6,24%

SALES FORECAST
Sales Year 1 Year 2 Year 3

Sales Engineering 98 000 110 250 124 032

Powder Metal 144 000 162 000 182 250

Powder Plastic 104 000 117 000 131 625

Total sales 346 000 389 250 437 907

Direct costs, sales

Sales Engineering 240 000 270 000 303 750

Powder Metal 24 000 27 000 30 375

Powder Plastic 24 000 27 000 30 375

Total, direct costs, sales 288 000 324 000 364 500
Sales monthly

Sales yearly

EMPLOYEES
Personal Year 1 Year 2 Year 3

CEO/CTO 80 004 80 000 80 000

CFO 80 004 80 000 80 000

Technology Team 240 000 240 000 240 000

Branch Managers 69 996 70 000 70 000

Sales Eng. and Techs 360 000 360 000 360 000

Total wages 830 004 830 000 830 000

STARTUP FUNDING
Start-up Costs

Research Technology 100 000

Research Store Location 200 000

Permits and Fees 100 000

Marketing Study 100 000

Total Start-up Costs 500 000

Start-up funding

Bank Loans 3 000 000

Bank Loans 2 000 000

Other Investors 2 000 000

Grants 2 000 000

Government Loans 1 000 000

Total Start-up funding 10 000 000

Total Equity 9 500 000

10.2 PROFIT & LOSS TABLE

Year 1 Year 2 Year 3

Sales 346 000 389 250 437 907

Sale costs 288 000 324 000 364 500

--------------- --------------- ---------------

BTO profit 58 000 65 250 73 407

BTO profit % 17 % 17 % 17 %

Expenses

Salaries 830 004 830 000 830 000

Additional Salaries costs 273 901 273 900 273 900

Marketing and activity costs 0 6 352 800 0

Depreciation 1 210 560 1 210 560 1 210 560

Accounting / HR / Advertising Services 99 996 100 000 100 000

Supplies (office and operating) 99 996 100 000 100 000

Utilities, Web, IT, Phone 20 000 20 000 20 000

Insurance 999 996 1 000 000 1 000 000

Maintenance Plan 100 000 100 000 100 000

Research Technology 100 000 0 0

Research Store Location 200 000 0 0

Permits and Fees 100 000 0 0

Marketing Study 100 000 0 0

--------------- --------------- ---------------

Sum direct costs 4 134 453 9 987 260 3 634 460

Financial costs -0 -0 -0

Profits before tax -4 076 453 -9 922 010 -3 561 053

Profit before tax % -1 178 % -2 549 % -813 %

Net profit monthly

Net profit yearly

Gross margin monthly

Gross margin yearly

10.3 BALANCE SHEET

Year 1 Year 2 Year 3

Current assets

Liquid assets 1 297 208 -1 068 693 -3 427 343

Sales 346 000 389 250 437 907

Total current assets 1 643 208 -679 443 -2 989 436

Fixed assets

Fixtures and fittings & fixed assets 6 052 800 5 052 800 4 052 800

Acc depreciation fixtures & fittings/fixed assets 1 210 560 2 421 120 3 631 680

Total fixtures and fittings/fixed assets 4 842 240 2 631 680 421 120

Total assets 6 485 448 1 952 237 -2 568 316

Liabilities

Share capital & risk capital 10 000 000 10 000 000 10 000 000

Accounts payable 288 000 324 000 364 500

Accrued taxes 273 901 273 900 273 900

Long-term liabilities 0 0 0

Balanced profit/loss 0 -4 076 453 -8 645 663

Total liabilities & equity capital 10 561 901 6 521 447 1 992 737

Profit for the year -4 076 453 -4 569 210 -4 561 053
10.4 CASH FLOW ANALYSIS
Year 1 Year 2 Year 3

Liquid assets, incoming 10 000 000 6 644 130 -201 497

Liquid assets obtained from activities

Sales 346 000 389 250 437 907

Other earnings 0 0 0

Total earnings from activities 346 000 389 250 437 907

Other liquid assets obtained

VAT and tax refunds 612 082 1 961 333 891 638

Increase in accounts payable 0 0 0

Increase in short-term liabilities 0 0 0

Increase in long-term liabilities 0 0 0

Sale of current assets 0 0 0

Sale of fixed assets 0 0 0

New capital increase 0 0 0

Total liquid assets obtained 958 082 2 350 583 1 329 545

Liquid assets spent

Cash expenditure 2 937 992 8 826 800 2 514 500

Total expenditure from activities 2 937 992 8 826 800 2 514 500

Other liquid assets spent

VAT and tax payments 323 160 369 411 381 349

Reduction in short-term liabilities 0 0 0

Reduction in long-term liabilities 0 0 0

Purchase of current assets 0 0 0

Purchase of fixed assets 1 052 800 0 0

Total liquid assets spent 4 313 952 9 196 211 2 895 849

Net cash flow -3 355 870 -6 845 628 -1 566 305

Liquid assets, outgoing 6 644 130 -201 497 -1 767 802

YR1 YR2 YR3
Current Ratio = 0.16 -0.10 -1.5 *indicates low liquidity
Debt Ratio = 1.62 3.34 0.76 *indicates store is working out of debt
Debt to Equity = 1.32 *High capital industry/business
Net Profit Margin = -11.78 -11.74 -10.42 *indicates high initial risk but business working toward
stabilizing.
ROI = -0.63 -2.34 1.78 *indicates high initial risk but business becoming more
stabile.