4.

Enterprise and Product / Service Description

 Provide an overview of your business idea and a detailed description of your product or service.
Explain what inspired you to choose this line of business.

MOLA is the acronym of Mobile Light Accessory and it is an accessory for phones that enables you to
carry a cable built in a case, so you don’t struggle carrying two things to get you phone charged. It is
directed for people that are always busy or that a very productive life, so they don’t struggle with this
problem. It was mainly inspired by the whole team since we are all users and we are always looking how
to make human life easier.

• Explain in what way is your business concept innovative, and what innovative features your product
or service offer.

The business is innovative because as the world is constantly developing it tends to make things more
and more complicated, but the main goal of our product is to make thigs easier for the end user, and we
achieve this goal by making out product as simple and easy to use as possible. We have not encountered
a product that has the same characteristics. We add a USB cable into a conventional case, with the
advantages of carrying around a USB cable and having protection for your phone.

• Describe what market needs and customer expectations your product or service will be fulfilling. –
COTE

• Customer expectations

The market needs a product that makes it easier to keep their phone charged at all times. Conventional
battery backup needs to charge, so it adds an extra step, we as the product developer try to make thigs
simpler and useful, by just making a phone case with a small charging USB cable. Some of the
requirements of the customers are described above and how will they be fulfilled.

A good performance does not break, that is ensured through the overall thinness of the case, that is no
less than 2mm.

The good flexibility in order to get in and out the cable in a safe way, and this is ensured through the
correct selection of the material that will be used, flexible polystyrene resin.

The cable should be easy enough to grab, and this is ensured through an additional cavity and a string to
pull it easily.

To be in different presentations and is easy accomplished because we can paint the resin very easily
with different colors and patterns.

The case proving a well-tested cable to charge their phones.

5 Marketing and Sales Plan

• Describe your potential market and list the important features that make your product or service
worth having (design, functionality, reliability, usability, other). – COTE

Our potential market is female users around 35-40 years old, high educated, full time job, have an above
average income and like to have prestige through brands.

Some of the points that are to be consider in the design of the product are the following:

 The product design has to me as simple as possible, jet stylish. It will come in different colors
 The design measure should not be less of the measures of the iPhone X.
 The case should have wide opening for the usage of the buttons.
 The cavity for the USB cable should be the smallest possible to make sure it does not give up
portability.
 The case should not cover the touch display.
 The case should not break (overall thickness no less than 2mm.)
 The case should be har but flexible enough (polystyrene resin.)
 The cable cavity should be not too loose or too tight.
 A well-tested cable.
7 Financial Analysis / Schedule

• Provide a summary of the key financial components and indicators and show the viability of the
Business Plan (breakeven point, NPV, TIR, etc.). – COTE

For the analysis of the viability of the project we first made some calculations on the expenses that will
occurring for the installation of the project, and of the firsts months, these are presented below.
Estimated
CONCEPT Initial Costs expenses
month
Salary Cable 40
Renting 4000 4000 Resins 20
Publicity 40,000 10,000 Packing 5
Resin 32000
Molds 120,000 No Case Month 1600
Dispensers y accesories 6000 5000
Sealer 11000 Operators 2
Process WS 5000 Hours in a shift 9 8
Finish productWS 5000 Work days 20
Plastic boxes 3000 Pieces per mold 5
Rack 8600
Cable 64,000
Packing 8000
Security equipment 1500
Polisher 8000 200
Internet 800
Celphones 4000
Accountant 5000
Operators 12000
Quality assurance external
1000 1000
audits
Other expenses 2000
$ 219,100.00 $ 142,000.00
Unit cost $ 88.75
Price $ 250.00

As we can see the main monthly expense will be those that are needed directly as a raw material for the
product.

First, we projected the sales of the cases according to another selling cases company report of when
they were starting. Then we research the risk percentage of the sector that we are trying to reach which
was 11%, along with the average inflation, the desire investment recovery and the wanted earnings, all
of this to make up the minimum expected rate of return which gave us 47.18 %. Then we perform the
analysis of the Net Present Value and Internal Rate of Return without taxes.

The Net Present value gave us 317K Mexican pesos in the duration of 12 periods, which is a good
indicator that tell us that at the end of the first year the money that it is equivalent today is 317K. We
can also see that the Internal Rate of Return is 125.7%, almost 80% more than the Minimum expected
rate of return which tell us that the business is viable.
 Monthly 0.039316667
Sold units 200 350 350 500 520 600
Period 0 1 2 3 4 5 6
Income $0.00 $50,000.00 $87,500.00 $87,500.00 $125,000.00 $130,000.00 $150,000.00
Outflow $219,100.00 $142,000.00 $142,000.00 $142,000.00 $142,000.00 $142,000.00 $142,000.00
FNE -$219,100.00 -$92,000.00 -$54,500.00 -$54,500.00 -$17,000.00 -$12,000.00 $8,000.00
Sold units 800 1000 1300 1500 1500 1700
Period 7 8 9 10 11 12
Income $200,000.00 $250,000.00 $325,000.00 $375,000.00 $375,000.00 $425,000.00
Outflow $142,000.00 $142,000.00 $142,000.00 $142,000.00 $142,000.00 $142,000.00
Net Cash Flow $58,000.00 $108,000.00 $183,000.00 $233,000.00 $233,000.00 $283,000.00

Net Present Value -$219,100.00 Minimum expected rate of return Internal Rate of Return

Period
1 -$88,519.70 Risk 13.00% 125.704193%
2 -$50,454.59 Inflation 3.78% NPV
3 -$48,545.93 Investment recovery 15.40% -$219,100.00 0
4 -$14,569.93 Capital cost 0.00% -$83,276.50 1
5 -$9,895.59 Wanted earnings 15.00% -$44,654.55 2
6 $6,347.50 Total 47.18% -$40,420.38 3
7 $44,278.48 -$11,412.67 4
8 $79,330.58 -$7,292.13 5
9 $129,336.19 $4,400.46 6
10 $158,444.44 $28,878.21 7
11 $152,450.59 $48,674.41 8
12 $178,160.63 $74,655.64 9
NPV $ 317,262.667 $86,040.33 10
$77,881.93 11
$85,625.25 12
$0.00
Then we did again all the calculations but now with taxes, to see how it behaves, but first we must
calculate the depreciation of the equipment. After that we repeated the same calculations and we got
an NPV of 118K and IRR of 87% which tell us the business viable because the IRR is greater that the
MERR.

MERR 47.180000% Year 1 M. Depreciation $ 1,449.33

Anual 0.4718 Taxes 38%
Monthly 0.039316667
Period 1 2 3 4 5 6
Depreciation 0 $1,449.333 $1,449.333 $1,449.333 $1,449.333 $1,449.333 $1,449.333
Taxable income 0 -$93,449.333 -$55,949.333 -$55,949.333 -$18,449.333 -$13,449.333 $6,550.667
Taxable income tax $0.00 -$35,510.75 -$21,260.747 -$21,260.747 -$7,010.747 -$5,110.747 $2,489.253
Net flow after taxes -$219,100.00 -$56,489.253 -$33,239.253 -$33,239.253 -$9,989.253 -$6,889.253 $5,510.747
Period 7 8 9 10 11 12
Depreciation $1,449.333 $1,449.333 $1,449.333 $1,449.333 $1,449.333 $1,449.333
Taxable income $56,550.667 $106,550.667 $181,550.667 $231,550.667 $231,550.667 $281,550.667
Taxable income tax $21,489.253 $40,489.253 $68,989.253 $87,989.253 $87,989.253 $106,989.253
Net flow after taxes $36,510.747 $67,510.747 $114,010.747 $145,010.747 $145,010.747 $176,010.747

Net Present Value -$219,100.000 Depreciation Internal Rate of Return

1 -$54,352.302 Ind. Machinery 0.1 120000 12000
2 -$30,771.982 Sealer 0.1 11000 1100
3 -$29,607.899 Work Stations 0.1 10000 1000
4 -$8,561.334 Rack 0.1 8600 860
5 -$5,681.103 Polisher 0.1 8000 800
6 $4,372.432 Cellphones 0.333 4000 1332
7 $27,873.113 Plastick boxes 0.1 3000 300
8 $49,589.505 Annual Depreciation 17392
9 $80,577.681 Monthly Depreciation 1449.333333
10 $98,610.071
11 $94,879.717
12 $110,806.308
NPV $118,634.206

Internal Rate of Return

Period

87.171003%
NPV
-$ 219,100.00 0
-$ 52,663.64 1
-$ 28,889.58 2
-$ 26,933.09 3
-$ 7,545.93 4
-$ 4,851.74 5
$ 3,618.10 6
$ 22,347.85 7
$ 38,524.14 8
$ 60,652.79 9
$ 71,920.08 10
$ 67,049.44 11
$ 75,871.59 12
$ 0.00002
We also calculated the profitability index which gave us above 1 (1.2) telling us that the business is
profitable. And finally, we calculate the periods of recovery that gave us a recovery with in the first year,
so we conclude that it is a viable business.
MERR 47.180000% Year 1 M. Depreciation $ 1,449.33
Anual 0.4718 Taxes 38%
Monthly 0.039316667
Period 0 1 2 3 4 5 6
Income PV $0.00 $48,108.53 $81,005.08 $77,940.71 $107,131.81 $107,202.25 $119,015.60
Outflow PV $219,100.00 $136,628.23 $131,459.68 $126,486.64 $121,701.74 $117,097.84 $112,668.11
Period 7 8 9 10 11 12
Income PV $152,684.43 $183,635.60 $229,695.42 $255,007.15 $245,360.39 $267,555.71
Outflow PV $108,405.95 $104,305.02 $100,359.23 $96,562.71 $92,909.80 $89,395.09
Accumulated Income PV $1,874,342.69
Accumulated Outflow PV $1,557,080.03
Profitability index 1.204

Period 0 1 2 3 4 5 6
Accumulated Net Cash Flow -$219,100.00 -$311,100.00 -$365,600.00 -$420,100.00 -$437,100.00 -$449,100.00 -$441,100.00
NPV before taxes -$219,100.000 -$88,519.700 -$50,454.594 -$48,545.930 -$14,569.926 -$9,895.592 $6,347.499
NPV after taxes -$219,100.000 -$54,352.302 -$30,771.982 -$29,607.899 -$8,561.334 -$5,681.103 $4,372.432
Accumulated NPV before taxes -$219,100.000 -$307,619.700 -$358,074.295 -$406,620.225 -$421,190.151 -$431,085.743 -$424,738.244
Accumulated NPV after taxes -$219,100.000 -$273,452.302 -$304,224.284 -$333,832.183 -$342,393.517 -$348,074.621 -$343,702.188
Period 7 8 9 10 11 12
Accumulated Net Cash Flow -$383,100.00 -$275,100.00 -$92,100.00 $140,900.00 $373,900.00 $656,900.00
NPV before taxes $44,278.485 $79,330.579 $129,336.190 $158,444.440 $152,450.591 $178,160.628
NPV after taxes $27,873.113 $49,589.505 $80,577.681 $98,610.071 $94,879.717 $110,806.308
Accumulated NPV before taxes -$380,459.760 -$301,129.181 -$171,792.991 -$13,348.551 $139,102.040 $317,262.667
Accumulated NPV after taxes -$315,829.076 -$266,239.570 -$185,661.889 -$87,051.818 $7,827.898 $118,634.206
Recovery period 10
Before tax recovery period 11
After tax recovery period 11