Recently, I visited a school for hearing impaired children and during our discussion, it was difficult for the school to participate in evacuation drills since the students cannot hear the emergency calls.
I realized a potential product and opportunity that would be helpful during events like these and even so if a real disaster strikes, God forebid.
The product is a flashing red arrow placed in front of the students pointing to the exit and a control switch. This is the initial version of the product.
A pilot study is conducted on the current school. The school install signs in the rooms and a control switch in the office of the headmaster. A students’ orientation shall be conducted, informing the students of the emergency procedure. A disaster drill is perforned and evaluates if the emergency procedure and product is useful.
The pilot study will cost a few thousand pesos which this proponent is willing to invest.
Later the actual business implementation, (please note I am currently employed and cannot give 100% of my time).
Initial target is 12 signs at P2,000 per sign production cost, including materials and labor. The signs shall be sold at P5,000 pesos each and for every 5 signs sold, 1 sign is given free to institutions that teaches hearing impaired persons.
At 10 signs, the potental gross sales is P50,000 and the 2 signs given free. The production cost for the 12 signs is P24,000, so the net income is P26,000.
This amount will be used to pay loans interest, if any; and give honorariums to stakeholders.
Funding for the initial the business implementation is P24,000. This is a small amount and can easily loaned from friends with charitable hearts, which hopefully will not charge any interest.
The product shall be distributed physically. A web page shall be developed documenting the product and the pilot study and a customer page for customer relations and after sales support.
Later versions will automate some functionalities, such as sensing vibration for possible earthquake detection. Remote control can be added. In both cases, microcontroller equipment can be used such as the Arduino and its add-on components.
For later versions, a bigger start-up capital is needed. This product will have new the ‘Internet of Things’ functionality and a distinctive advantage among similar products.
The new product will shift the business model and needs the fulltime participation of the proponent. Target consumers will be changed as well as the channels and relationship models.
The consumer segment will target a wider commercial market as well as the government sector. Initial target is at 50 units per month. The social target of 5 units sold to 1 unit free. The production of 60 units costs P120,000 per month. A 3 month production buffer is proposed or P360,000 to start the project. Given a P140,000 for company start-up cost, an initial seed money of P500,000 is needed. If the loan interest is 12%, interest will beP5,000 or around P47,000 monthly loan repayment .
Revenue is P250,000 minus production cost P100,000 minus P47,000 loan repayment minus P25,000 for other expenses and P50,000 overhead labor for a 3 person office; marketing, staff and the proponent; the net monthly income is P28,000 for the first year and P75,000 for the succeeeding years, at the same target.
The possible impact investors will be the government in terms of grants; and from business angels with low interest loans plus consulation. Banks will be last since they charge high interest.
Social impact shall be determined once the pilot study is conducted and included in the success story. The potential impact can be tremendous, both in marketability and of being a social entrepreneur to help hearing disabled persons.