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Tommy Rodriguez Nicholas Dora Xionan Jia Jisheng Pan Chia-Yi Liaw

EXECUTIVE SUMMARY Bicycle accessories industry is about $2.4 billion market. It will continue to grow by 20% in the next 10 years with the increased awareness of utilizing bicycle to commute in cities and urban areas. Target market size of is about $1,824,000,000. Given the current available bike safety gears in the accessories market, there is only reflective product and indicators that is not apparent and large

enough to increase the visibility on road. In addition, there is urge need for bikers to have indicators to reduce collision accident. Business Concept BeSeen’s solution is to offer high quality, affordable and user-friendly safety gear for pedal cyclist. The BeSeen Vest is a unique wireless control indicator that bicycles can wear while riding on the road. The product consist of a vest with LED lights on the back as shapes of arrows. In addition, users could simply press button and the indicators will shine. By utilizing BeSeen Vest, pedal bicyclers can easily notify pedestrians and vehicle drivers which direction they are heading. Competitive Advantage The main product of BeSeen is the vest with LED lights. It brings the benefits of wireless freedom in a function rich, fashionable package. The major substitute for the BeSeen product is tail lights. It is the most widely-used safety indicator people subconsciously think tail lights is a safety necessary. But the vest is differentiate from the tail light. In addition, BeSeen Vest has larger LED lights which could increase the visibility to those drivers behind the users; it is convenient to wear and reliable to use because its wireless control and lightweight; The price is relatively cheap due to outsourcing manufacture and the combination of existing technology. Target Market From our market research result, BeSeen’s target market will be 760,000 paddle cyclers who is always daily commuters in the U.S.A. 2012 was a solid year for the U.S. bicycle industry, with direct effect sales of $6.1 billion, including retail sales of bicycles, related parts and accessories, through all channels of distribution. It is a great opportunity for BeSeen to enter the market to sell safety gear. Marketing Approach The primary goal for BeSeen’s marketing strategy aims at creating brand awareness for its product as well as raising public need for a safety gear improving paddle cyclers’ visibility on road. The major sales tactics of BeSeen is on direct selling from authentic BeSeen online website. Later on, we will be planning launching to sports retails store. In addition, we market and promote product to consumer by a group of salespeople. Currently, BeSeen focuses on online advertising, banner ads, and video clips. BeSeen’s sale promotion will be established with partners, such as bike rider’s organizations, brand bike retailer and etc. Technology and Operational Issues The technology we apply are LED and wireless control. Because it is a kind of simple vest and uses existing technology, we plan to license the product’s design to a qualified manufacturing company so that it meet our desire and customers’ need. After they are completed, they will be shipped to our 2

warehouse. We will send them to customers and retailers depend on the orders we receive from them. And the product will be very convenient to wear and use for them. Economics The major two revenue streams would be from online direct sales and retails sales. In terms of the cost structure, greater fixed costs consist of salaries for management team and salesmen and minimal variable cost comprise with commissions following by initial startup costs $26,000 in addition, BeSeen obtains lower operating leverage which less error made in forecast sales. Financial Highlights - Initial Startup costs will be $25,070 - Breakeven occurs in the 5th month of 2nd year of operations - Projected Revenue: Year 1 : $275,954; Year 5: $4,511,248 - Projected Net Income: Year 1: $52,808’ Year 5 : $2,411,807 Financing Need BeSeen does not required a substantial investment due to low startup costs and first year expenses. The company will only require an investment of $200,000. This amount covers the startup costs the company will endure and allows the cash balance to stay at a high enough level throughout the first years of operation. For this investment the investor will receive 7 % equity in the company. In 2019, Company Value will be $47,197,251. Management Team Tommy Rodriguez, Chief Executive Officer (CEO); Mr. Rodriguez is an innovator, entrepreneur and student of emerging markets and sales. Nicholas Dora, Chief Financial Officer (CFO); Mr. Dora is an accounting major at SU and will be pursuing a master’s degree in accounting at SU as well. Xiaonan Jia , Chief Marketing Officer (CMO); Miss Jia is Studying Marketing and Public Communications during her undergraduate study in Syracuse University. Jinsheng Pan, Chief Operation Officer (COO): Mr. Pan is a supply chain management and marketing management double major at Syracuse University. Amy Liaw, Chief Information Officer (CIO): Miss. Liaw is an IT and Finance major at Syracuse University with information management experiences.


COMPANY, CONCEPT & PRODUCT Mission Statement BeSeen Company provides high quality and affordable safety gear for bicycle riders. We focus on research, development and promotion of safety awareness on riding and bicycles with our BeSeen products.

Company BeSeen Company will organize as an LLC due to the flexibility and protection it provides. With this level of protection personal assets will not be at risk, only the capital and assets invested into the company will be liable. The LLC will be formed in Wyoming due to the tax benefits of the state. Moreover, Wyoming also maintains some of the lowest fees of any state, such as manufacture fee and cost. We plan to commence operation in the first quarter of 2015 as detailed plans have organized. Five members and one consulting advisor established BeSeen Company in February 2014. We observe the large group of bicycle riders in the United States, and discover the instant need for safety on the road. Motor vehicle drivers are not aware of whether the cyclists are turning right or left or even stopping. The idea is to develop a product that helps increase the user’s visibility. Concept BeSeen is here to provide significant safety to bicycle riders in order to decrease the number of accidents in the road. With an obvious visible indicator vest, riders can easily indicate the direction they are going and as a result they will attract the attention of motor vehicle drivers. Our target market with BeSeen is bicycle rider in highly congested roads. By introducing our flagship product BeSeen we plan on helping riders get more visibility on the road and reducing head on collisions with other vehicles. Product Mix The product will consist of a vest with LED lights attached to the back in the shape of arrows, pointing left and pointing right. A waterproof switch that will be hooked around the handlebar will wirelessly control the lights. A rechargeable battery pack will power the vest and a small button cell battery will power the switch. To accommodate a user that is wearing a backpack there will also be an option of securing the lights to a backpack. In order to make BeSeen more flexible, there will be plastic latches that can be hooked around most backpacks and allow the user to experience a safer ride regardless of what they wear. The vest will also naturally be reflective so even when a rider is not using directional lights they will still be more visible. For ease of use the vest will be able to fold into a small area and placed in a pouch on a majority of bikes. Moreover, for those users that want to use the vest even during the daytime the lights will be a bright yellow/orange color that will stand out easily.


BeSeen Clamp

BeSeen Vest



Entry and Growth Strategy We enter the bicycle accessories industry by raising the awareness of existing safety issues among motorcyclists and bike riders. The company will start with New York City as our first market. Later on, we will expand to other States in the East Coast. After year three we plan to reach the most important States in the country. Furthermore, by year three, after gaining market acceptance, we aim to be awarded major contracts with Sporting Goods Retailers. In the fifth year, we will promote our business in several major cities in Canada and Europe. In the meanwhile, the company will be working on developing improved products. Helmets, jackets and frontal facing lights will be part of our R&D portfolio. Part of our growth strategy expanding into new markets. The new market would be adapting our concept into motorcycles. We will still focus heavily on safety accessory because we believe in safety’s importance towards and we want to provide customers a more comfortable and protected experience.


INDUSTRY ANALYSIS Bicycle accessories industry is a widely available market in the world, including regional markets of Europe, North America, Asia-Pacific and etc. The market of bicycle accessories is enlarging significantly due to the change of people’s lifestyle, the increasing awareness of safety and numerous regulations. The segments of the safety gears include reflective devices, protective pads, head protection and so on. For NAICS, there is not a specific number that belongs to bicycle accesso-

ries industry. In order to estimate the relevant market, BeSeen choose sporting goods stores’ NACIS code 45111 . This industry has been growing rapidly in the last decade because of the increasing in bicycle sales according to National Bicycle Dealers Association. Although competition in the parts manufacturing industry in the US is relatively high, the size of the aftermarket is about $2.4 billion for bicycle accessories. (Bloomberg Business Week 2013) Structure of the Industry The bicycle accessory industry is relatively fragmented. The traditional protection includes helmets, pads for different parts of body and etc. There are multiple brands are in this industry currently, such as ICON, EVS and FOX. However, most of their products aim at protecting riders’ head. In other words, none of these famous offers a product functions like BeSeen, which is an indicator of bike riders’ direction. Critical Success Factors in the Industry Technical innovation It is no doubt that technical innovation plays a crucial role in every industry. It can totally and dramatically alter the industry landscape. Apple is an excellent example. For BeSeen, in its industry, technical innovation is very important, but it is more about provide greater safety and protection to customers. The basic product in BeSeen is a special vest. BeSeen launches this product by ingeniously using existing technologies and put them together in novel way so that it could works very well. The main two technologies BeSeen applies are LED lights and Wireless controlling. Moreover, because of his good and unique design, it is more comfortable to wear and more convenient to take. It will bring consumers a new experience. Manufacturing outsourcing With development and improvement around the world with information media, communication way, quality of global distribution and manufacturing, and also capabilities of product producing and designing, a lot of companies are gaining more synergies by outsourcing parts or all of their supply chain. Most of them outsource to Asia to take advantage of cheaper labor and adequate infrastructure. BeSeen will do it as well. BeSeen plans to outsource all manufacturing things to some factories in China so that the company could decrease overhead cost of running manufacturing and develop internal task force and use them more efficiently. Furthermore, BeSeen focus more on core competence, improve service and brand development.


Brand development Brand is everything. A good company always has a great brand and brand strategy. The three top most popular brands are Apple, Microsoft and Coca-Cola. Everyone knows them. But BeSeen is a new start-up company. The safety gear company which has more successful brand development in market has a bigger market share. One of the most important tasks BeSeen need to do now is developing its brand. To successfully position BeSeen’s brand, the company first should understand what core value, like integrity, quality, convenience and etc. And the company will start a research involving the target customers, strength and weakness of the company, competitor and etc. Moreover, BeSeen will provide a unique, attractive image and an effective, quick message to the relevant and potential customers and market. Channel access Channel is how the product gets from a company to customers. Channel in this industry can be various. It could be physical, and it could be web/mobile. Most companies in the industry use both of them. They play a big role in delivering a firm’s faith, serious attitude toward product, service spirits into market, and also in delivering good products, great service, and core value to customers. For BeSeen, the first channel access will be its own website. The company will sell products directly to customers online. At the same time, the company will also take efforts to reach local bike shops and smaller retailers. One year later, BeSeen will market and promote product to chain retailers such as Sports Authority and Walmart. These three channels will take BeSeen further establish its market share [8][9]. Key Ratios


MARKET RESEARCH AND ANALYSIS After segmenting the market the clear choice is recreational and commuter cyclers. Recreational refers to those riders who use their bicycle for short length trips and for leisure. In the other hand bicyclist commuters refer to those who ride for their work. These markets seem to be the most suitable given the features of our product. Since we are a startup we came to the conclusion that our best course of action would be to pursue a more attainable market.

BeSeen’s customers are bicycle riders who live in major cities across the US. Customers would be a people who live in major cities and use their bicycle as the main source of transportation. We chose these segments of cycler’s because they are the ones that would benefit the most from the products features. Since the bicycle is their primary means of transportation, these customers would be willing to pay premium price (Survey: Appendix) for a device that enhances their safety. When they use their bicycles with a straight posture they take full advantage of the products features. Heavy traffic bicycle commuters are used to traveling through congested roads with heavy traffic coming from all directions. These people are not being seen by motor vehicles and constantly fear the treat of collision. Usually, they leave their bicycles in bike-racks and need a versatile and removable solution. These characteristics that these city cyclers posse qualify them as our main target consumer. Our target customers have in common: ●

Claim they are not being seen by motor vehicles

Feel threaten by heavy traffic commuting

Use bicycle racks to lock their bicycle

Our survey helped us clearly define the specific type of bicycler that we would be targeting. We won't be targeting cyclers that use their bicycles for exercise and fitness. Due to the nature of the posture the bicycler takes when riding, the lights won’t be as visible as for commuters. Understanding how bicycle consumers think has helped us define our customer segment. That being said, we will first focus on commuters and secondly on recreational users. Across the world, more than 10,000 bicyclers die each year. The Pedestrian and Bicycle Information Center claim that in 2010 in the US, more than 50,000 injuries were reported due to straight up collisions with motor vehicles. In the US alone, 618 bicyclists died after colliding directly with a motor vehicle. Our research showed that the states with the highest number of bicycle commuters are New York, Pennsylvania, District of Columbia, Illinois, Oregon, and California [15]. Definition of Relevant Market The relevant market of BeSeen is the safety gear for bicycle. BeSeen Company provides high quality and affordable safety gear for customers in order to increase the safety when people ride on the road and decrease the number of accidents on the road. At the beginning of our business, BeSeen will focus on the


market of bicycles. Its initial primary target market in the first year is the top 10 bike-friendly cities, which have the biggest population of bicycle commuters. Base on the research of the market, we found that people would like to buy reliable and convenient safety product. Market Size and Trends According to our market research, there were 18.7 million bicycles sold in 2013 in US. The number of people who are interested in bicycling and the number of cities that promotes bicycles as a cleaner and more sustainable way of transportation is increasing. However, along with the sustaining increasing, the safety issue is getting more and more frequent so that safety gear is kind of product people would buy when they choose bicycle as their commute way [12].


Competitors Over the past three years, there have been three companies that have tried to make safety-oriented products for cyclists in order to improve their visibility on the road. One of them is called Zackees; the concept is a glove that has signals lights that are activated by pressing your fist. That concept is the one that has the most similarities to our product because of the design of the signal lights and the features it offers. This product is priced at $79 which we consider to be expensive and out of reach for our customer segment. Amphipod is a company that focuses on developing bike safety equipment. They currently offer a line of products that help the user increase their visibility by using only reflective technology. Furthermore, there’s another company called Helios Bars, the essentially transformed the handle bar by adding some LED lights in order to improve the visibility. The handlebars have LED lights in each of the sides and they function as signal lights by pressing a button. It also has a big LED light facing the front, which works like a beam light to improve how much the rider can see the road. This company focuses on creating only handlebars for a small percentage of bicycles, they also have to be installed and range 14

from $200 to $300 dollars, making it a high-end product. Torch Helmets is creating similar products to our concept. They are offering helmets that have big LED lights that help the rider appear visible to other motor vehicles. The torch helmet is priced at $200. Overpriced and out of the reach to this customer segment. It seems that these companies are opting to use Bluetooth and LED’s in order to improve their invention and keep them up to date with new trends. Bluetooth connectivity allows the users to easily connect their mobile devices with their products. Because Bluetooth is on the cutting edge of technology it would make sense for us to use it as our way of pairing. LED lights are low cost and have one of the lowest energy consumption rates of small lights available. We will focus on using this kind of technology to keep our cost low and take advantage of this innovative technology. The companies previously mentioned all started with the help of crowd funding platforms like Kickstarter.

Market Segmentation and Target Market BeSeens’ primary market is bicycle commuters in big cities across the US. The market size for commuters is $30,400,000. The size of our secondary market is $216,000,000, which covers recreational users and commuters. 18.7 million people ride their bicycles every day, but not all of them fall under our target market.


Future Growth Potential The potential for growth of our company is promising given the nature of our product. Our technology can be adapted to different types of transportation vehicles to improve the safety of the user. Future Market Europe is moving towards green technology and cleaner alternatives to fossil fuels. Bicycles have become the norm of transportation in major European cities. According to The Guardian, there are over $20 million sales in 2011 in European Union [19] Given this trend the company firmly believe Europe would be its second major market. Another way of expanding our company would be by entering the motorcycle industry. In the US alone 290,000 people commute every day by motorcycle. This creates a brand new market for us with a similar product. This product will have several variations and must be made different for specific types of motorcycles.



Revenue Drivers & Profit Margins Projected Revenue Years 1-5 ($) BeSeen’s first five years of operating revenue are displayed below. The company’s main revenue driver will be sales of their safety vest to the target market of cyclists.

Fixed & Variable Cost Structure

Variable Cost


Operating Leverage BeSeen’s cost structure is proportioned relatively evenly between fixed and variable costs. The 5 year sales projection estimate that the cost of goods sold and sales commissions comprises 43.8% of the company’s total costs. Thus, BeSeen will have a low operating leverage according the cost structure described above. The projected break-even point will occur in the fifth month of the second year, after which BeSeen will experience revenue growth and become profitable as a company. Once BeSeen breaks even the company will continue to grow rapidly and experience large profits very quickly. Start-Up Costs

Break Even Chart


Profit Durability BeSeen will have very durable sales given the size of the target market and current growth rates. Cycling, and more specifically commuting via bicycle, is something that is present all around the world and will be for the foreseeable future.


MARKETING PLAN Definition of Relevant Market BeSeen is in the bicycle safety gear industry. The company provides high quality and affordable safety gears for customers in order to increase the safety when people ride on the road and decrease the number of accidents on the road. At the beginning of our business, BeSeen will focus on the market of bicycles. Its initial primary target market in the first year is the top 10 bike-friendly cities, which have a big number of biker base and excellent facilities. Base on the research of this market, we found that people would like to buy reliable and convenient safety product. That is where our real market is.


Market Size and Trends According to National Bicycle Dealers Association [20], there were 18.7 million bicycles sold in 2012 in US. Furthermore, it is a new trend for people start enjoys cycling as a pleasant and environmentalfriendly way for commuting purposes. For example, based in NYC Department of Transportation commuter cycling grew by 13%. However, along with the steady increase in bike commuters, the safety issue is rising and safety gear is one of the most effective solutions to this problem. [21] Market Segmentation and Target Market BeSeen’s target market is pedal cyclists who ride bicycles for commuting purpose over frequently. According to National Bicycle Retailer Association, in year 2012, bicycle’s direct effect sales is $6.1 billion, including retail sales of bicycles, related parts and accessories, through all channels of distribution. There has also been a trend toward more bicycle retailers selling used bicycles. BeSeen’s Features and Competitive Advantage The main product the BeSeen vest, which is the combination of multiple existing technologies. There LED lights at the back of the vest in shape of an X and the light is connected with the front handle bar, which is light up in shape of an arrow to provide vehicle drivers behind them an indication what their next motion will be. The product is very light and convenient to carry. Pricing BeSeen’s pricing strategy is based on its original cost, comparison with its competitors and how much people are willing to pay for it according to the company’s primary research. The price of BeSeen will be $59.99. It is relatively low compared with the industry average. Also, the company is trying to use the low price as a competitive advantage in the market. For example, ackees Bike Glove Turn Signal, which improves runners and cyclists’ visibility on the road, is priced at $75. According to the company’s primary market research, over half of the participators are willing to pay over $ 80 for a safety gear which can improve visibility. Sales Tactic The major sales tactic of BeSeen Vest is on direct selling from BeSeen’s official website, local bike and accessory shops such as Syracuse Bicycle and Advance Cyclery, and chain retailers. For the first years, five founders of the company will function as sales representatives to promote the brand to bike shop in New York City. Starting from the second year, BeSeen will hire two salesmen with the following qualification:


• 3-4 years sales experiences • Knowledge about product function • Strong communication and presentation skill • Organizational and multitasking skills • Proficient in social media and Microsoft excel BeSeen provide training program including understanding the function and usage of the product, marketing strategies as well as how to launch company brand name into market. With the annual base salary of $35,000 plus bonus, the position of sales agent will be challenging but rewarding as the product sales increase later in years. Also the number of sales representatives will be increasing with the business’s expansion from east coast to west coast, and finally abroad. Advertising and Sales Promotion BeSeen’s advertising strategy is closely related to its distribution channels and target customer segments. Advertisement will be de developed to raise public awareness on the potential danger of not being see on road as well as how BeSeen functions as not only an essential safety gear, but also a symbol of a bikers’ identity. The primary advertising platform BeSeen uses is Google Ad Words in order to catch the general population to those who are interested in buying safety gears. At the same time, BeSeen will put online banner will be put on BeSeen’s official website, bike and accessory retailer’s website, Ecommerce platform, biker’s organization and clubs to search the niche market of customer who already have experience buying safety gears. BeSeen’s sale promotion will be establish with multiple partners, such as bike rider’s organizations, brand bike retailer and etc. Due to the fact it does not have a large awareness in public yet, the first thing is that BeSeen needs to utilize different channels to catching bike riders’ attention and get them interested. Cycling organizations and bike retailer have a large existing customer base so providing a discount would definitely attract more people to learn or buy BeSeen. Customer Service and Warranty A customer service representative will be available during office operation hours from Monday to Friday. The representative will be responsible for responding to customers’ suggestion, complaints and advices as well as handling return and exchange product service. BeSeen is highly focusing on product quality which a quality assurance process will take place before shipping out to customer. We commit 100% Satisfaction Guaranteed, Order Ship within 24 hours and Quantity Discount Pricing. 23

We see the importance of promising to stand behind the product. Every BeSeen Product comes with one year warranty and exchange policy when customer is not satisfied with product or there is any damage to the product. We will require customer to obtain prior authorization from customer service.


DESIGN & DEVELOPMENT PLAN Development Status and Tasks BeSeen has promised to deliver quality with lower cost BeSeen Vest to end user, which the company decides to outsource to a Chinese manufacturer, Zhuanjiao HOME, an experienced and reliable manufacturer. The product will cost $9.13 to develop. This cost includes both raw materials and manufacturing costs. In order to meet company’s mission, we focus on product quality assurance in terms of quality and safety testing at the end. In addition, before large production, we expect to have five prototypes and evaluate any improvements or problems. BeSeen Safety will further take steps to market our product in terms of attending trade shows and advertise on sports magazine, website as well as networks.


Ini$al'Financing' (Month'0)''

Product' Presenta$on' (Month'2)'

Product' Development' (Month'7)'

Tes$ng'and' Troubleshoo$ng'


Marke$ng'and' Sales' (Month'11)'

First'Sale' (Month'13)'

Difficulties and Risks ! In the process of product development, possible difficulties might occur is the wireless technology and charger mistaken. With the dedication of manufacturing, the problem should be terminated from quality assurance test. With the risk of limited time constraints and budget, the accomplishment of product development might occur with some uncertainty. Since the product will be manufactured in China, shipping duration time is another risk for future as mass production takes place. Product Improvement and New Products In the future, we plan to add more features to improve its safety functionality. For example, an electronic ring bell or speaker is in our consideration based on the fact currently that the vest only provide a signal to vehicle driver behind users. The electronic ring bell or speaker could be an indicator for other bike riders and vehicle drivers from the opposite direction from the BeSeen user. At the same time, the speaker could be used for playing music and other entertaining purposes. Additionally we will provide more options of colors so that the BeSeen vest can be a fashionable choice too. At the same time, if there’s a positive feedback in our market research, we also plan to develop a new product aiming at motorcyclist market. According to our previous market research, there is also a concern for visibility problem for motorcyclists on road. However, due to the consideration in motorcyclists’ personal preference, the vest will be a simpler design and it will be incorporated into the motorcycle’s brake system instead of its original handlebar controller. Another new product BeSeen Safety plan to develop to a sticker light which users could attached to their bags, hats and etc. One side of the sticker light will bw in velcro and the other will be LED lights. It will be designed in different sizes, shapes and with various colors’ LED lights. Costs The research and development cost for BeSeen vest is relatively low, around $5000 since it is based on the incorporation of existing technologies. Another part of BeSeen’s initial investment will be cost of the designing an efficient logistical system. Being manufactured in China, BeSeen’s warehouse will be in New Jersey which will allow us to complete our mission of reaching our customers in a timely manner, it’s crucial to have an effective supply chain system to support the business’s operation. The final part of the initial investment will be the cost of designing and implementing the company’s web-


site. The cost of this procedure will be around $10,000. In order to complete daily business tasks BeSeen will also require approximately $10,000 worth of office equipment. Finally, BeSeen will need $70 to file for an LLC Altogether BeSeen will start up with costs of about $25,070. Proprietary Issues Company name: We decide the company’s name is BeSeen. As a new company getting into safety gear industry, we want to let customer have a great first impression when they look at our name and let them know that we devote our full attention to our product to solve customers’ potential danger on road. Trademark: BeSeen Cycle is created by initial founders. There is a cycle with black and yellow. It means your need be concerned and your safety be seen. The research has done show there is not similar trademark in the market.


OPERATIONS PLAN Operations Strategy, Operating Model and Cycle BeSeen is in the process of negotiating with Chinese companies for manufacture of BeSeen vest. Given the nature of our product, we will see seasonal changes in sales especially around the summer time.

BeSeen is mostly concerned with the period between orders placed from retailers and the ability of the manufacturer to be able to produce the quantity and then deliver in a timely matter. In the front end of the cycle, BeSeen’s salesperson will contact retailers such as Dicks Sporting Goods and and place their order into the system. Once in the system, the back end, BeSeen will work with the manufacturer to ensure that the quality and all descriptions of the order are taken out correctly as the order flows downstream. The final stage is delivery and ensuring the customer receives exactly what they ordered. Geographic Location BeSeen’s executive office will be located in Brooklyn, New York City. Opening operations in Brooklyn will give the company a convenient access to Manhattan endless business opportunities with more growth potential. Its proximity to customers and retailers will help the company establish its brand and company more quickly. On the other hand, office in Brooklyn will be a lower expense with equal opportunities. BeSeen’s warehouse is located in New Jersey. First of all, due to the fact New Jersey is very close to New York City, executive office has a very convenient and easy access to the warehouse so that it could achieve an effective communication. Moreover, it is fast if there is any shipment coming from warehouse to office. Secondly, compared with the rent in New York, it costs cheaper. Thirdly, since the improvement of transport, infrastructure and logistic in New Jersey, BeSeen could take advantage of them to support better service to customers. Facilities, Equipment, and Improvement BeSeen plans to lease an office space in Brooklyn, NY which is 550 Sq. feet for 5 years. It costs about $1700 per month ( It is supposed to be found in June 2014. And there will be a room for five founder to complete jobs and handle daily tasks. Founders bring their own laptops and the company will buy a desktop computer for salesperson and customer service. Besides, other support furniture and utility will be fitted in order to give them joyful working conditions. The warehouse BeSeen has found in New Jersey is total 500 Sq. feet. It cost about $6000 per year ( The lease will last 5 years. There will be an office room for sender to deal with daily shipments. She will be equipped with a computer so that the office people in Brooklyn contact with her in time and she ships the orders to customer on time. For the improvement, we plan to expand the office space and warehouse in the future in order to attract better talent and improve our storage space. Furthermore, when it becomes necessary, we will open branches in different big cities to make sure our plan are on track.


Capacity Levels and Inventory Management The prototype of BeSeen Vest will be developed within two months, which we will market on the website as well as to the local sporting stores and have further corporation. BeSeen once approve preorder receipt, the company will contacts with Chinese manufacturer and immediately produce product and ship to the United State within 2 month at most depends on how many orders BeSeen receives. Approximately, BeSeen Safety holds about 1200 inventories in warehouse for safety stock, online website and ongoing sales in the beginning. Later on, BeSeen will focus on the sales routine and form constant product orders from China with specific time frame. Legal Issues Affecting Operations First of all, the business pays attention to the employment regulations. BeSeen will make a detailed plan for employees’ wages and working time and make sure everyone is satisfied with their working condition. Secondly, BeSeen will continue to strengthen security and privacy to protect the financial and private information for its customers and employees. Thirdly, about the tax reporting deadlines. BeSeen will stick to the rules and pay the tax on time.Finally, because BeSeen outsources manufacturer in China. There are issues involved in foreign regulation. BeSeen must follow those laws and regulations and make sure BeSeen cooperates with the manufacturers by using legal knowledge and proper method.





•  Human% Resource%

•  Outsource%

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•  Website% •  Retailers%



Key Management Personnel BeSeen consists of its five founders; the followings are their brief introduction.

Tommy Rodriguez, Chief Executive Officer (CEO) Tommy Rodriguez is an innovator, entrepreneur and student of emerging markets and sales. Professionally, he is dedicated to assisting businesses in achieving growth through new initiatives and the design and execution of innovative marketing and business development programs. He also has broad experience in real estate and finance. He previously worked at Santander Securities Puerto Rico in the capital markets department and at Tommy Realty Group as a estate agent/analyst. Nicholas Dora, Chief Financial Officer (CFO) Mr. Dora is a senior accounting major at Syracuse University as continuing on CPA master’s degree next year. With number years of accounting experiences on dealing with the financials at organizations on campus which will greatly prepare and assist him in his CFO position at BeSeen. Xiaonan Jia , Chief Marketing Officer (CMO) Miss Jia is specialized in marketing and communication areas. Studying Marketing and Public Communications during her undergraduate study in Syracuse University, she also has abundant experience working in marketing and public relations agency. Her years in Edelman, the world well-know PR agency, will support her function as the Chief Marketing Officer at BeSeen.


Jinsheng Pan, Chief Operation Officer (COO) Mr. Pan is a senior student majors in Supply Chain Management and Marketing Management at Syracuse University. His responsibilities include supervising the daily operation of the company and the process of production. His expertise will be applied to help BeSeen to produce better products and services while increasing profits. Also, he will assist CMO in understanding market trend and drawing up market strategy more correctly and timely. Amy Liaw, Chief Information Officer (CIO) Amy Liaw is a senior student majors in IT and Finance at Syracuse University. With the working experience at Performline Inc, She is dedicating for responsibility of managing infrastructure and implementing strategies to troubleshoot problems as a Chief Information Officer at BeSeen. Also, she will support functional integration and make the company more cost efficient while collaborating with CFO, Nicholas Dora. Management Compensation and Ownership Each member of the management team will be receiving a salary of $30,000 per year. This will allow for as much money as possible to go back into the business in its early stages of existence. The company will be held privately in its early stages and will make the decision on going public after a few years of existence. In terms of ownership, the company will be split between the five management employees and investors, exact amounts will be discussed with interested investors. Investors


Employment and Other Agreements, Stock Option and Bonus Plans Besides the original five shareholders, BeSeen Safety will hire two salespeople to be in charge of B2B sales and a customer service representative. Salespeople will be provided a $30,000 annual salary and 5% sales commission while another part-time staff will be hired with base salary of $ 25,000. Bonus will be issued base on that year’s profit and every employee has equal access to get bonus. Additionally, stock will only be provided to five founders in the first five years. After five years, the top management team may consider other stock options.



General Operation Schedule

! Product Design and Development




Highlights of the Financial Statements • Startup costs will be only $25,070, which consists of office equipment, research and development, and initial website development. • BeSeen is scheduled to break even in the 5th month (April) of the second year of business. • The two charts below summarize the income statement and statement of cash flows for BeSeen. Income Statement $5,000,000 ! $4,511,248 !

$4,500,000 ! $4,000,000 ! $3,659,100 !

$3,500,000 ! $2,891,518 !

$3,000,000 ! $2,500,000 !

$2,354,868 !

$2,411,807 !

$2,000,000 ! $1,625,729 !

$1,500,000 !

$1,333,014 !

$1,000,000 ! $500,000 !

$755,874 ! $627,038 ! $275,954 ! $233,956 ! $52,808 !

$1,355,607 !

$731,382 !

$250,792 !

$- ! Year 1!

Year 2!


Year 3!

Gross Margin!

Year 4!

Year 5!

Net Income (loss)!


Cash Flow Ending Balance $5,000,000.00 !

$4,500,000.00 !

$4,000,000.00 !

$3,500,000.00 !

$3,000,000.00 !

$2,500,000.00 !

$2,000,000.00 !

$1,500,000.00 !

$1,000,000.00 !

$500,000.00 !

$- ! Year 1!

Year 2!

Year 3!

Year 4!

Year 5!

Cost Controls BeSeen CFO, Nicholas Dora, will take the lead in terms of generating monthly, quarterly and annual cost reports on behalf of the company. He will also be the leader of determining appropriate costs and the justification for these costs. In the event of budget issues he will use his knowledge of finance to acquire the appropriate loan.


PROPOSED COMPANY OFFERING Desired Financing and Offering BeSeen is approaching equity financing from the angel investors who are private investors who back emerging entrepreneurial companies. With the initial startup cost to cover R&D and fundamental operation expenses as well as covering fixed and variable costs until company achieves breakeven points, BeSeen is looking for total capital investment of $200,000 In return, BeSeen will offer 7% equity stake in the company. In addition, the upfront investment will cover the initial start-up cost and flexible cash account safety in order to hedge the uncertain expense in year one. In conclusion, with the capital investment from angel investors, BeSeen is set to start the business flow.


Capitalization and Use of Funds BeSeen uses the initial investment to cover $25,070 of Research & Development, office equipment, legal fee and website development. BeSeen is needing a $200,000 capital investment from angel investors who is interested in invest in bike accessories industry. Indeed, BeSeen is offering 7 percent to angel investors in return of capital investment. The 7 percent is equivalent to 7 common stocks out of the 100 issued to all owners in the business. Initial Startup Cost

Use of Funds

LLC Filing (Delaware)


Research & Development


Office Equipment


Website Development



Stock PostInvestment

Tommy Rodriguez,CEO


Nicholas Dora,CFO


Jinsheng Pan, COO


Chia-Yi Liaw,CIO


Xiaonan Jia,CMO




Board of Advisors



Investors’ Return and Exit Strategy BeSeen's investor returns will be decided by both the angel investors and five founders. There are two options that seem feasible for the company. • Raise fund for second round financing. At year 5, when BeSeen has already established a client base in North America, the company will start its journey in Europe. With a larger potential target market, people are also willing to spend more money on their safety gears. The second round of financing will be invested in hiring local sales people, advertising and campaign, and establishing a headquarter in Europe. • Be acquired by a big market player in bike industry. According to n the past Monday, April. 21, BRG Sports Inc. sells its Easton cycling business to Chris Tutton, an industry veteran who owns Race Face Performance Products and is a former Easton OEM sales manager [18]. After year five, BeSeen would open to the possibility to be acquired since the company is searching more resources to do research and development. • Furthermore, the company could file for an initial public offering (IPO). This will enable the management team and investors the opportunity to sell stocks and raise more capital for further growth.


Seeking'Seed' Funding'of' $200,000

R&D% 19%% Office%Equipment% 38%%

Website% Development% 39%%

Legal%Fees% 4%%