Business Plan for Little Brother

By Shamil Patel

This document sets out a business plan for Little Brother, a hypothetical firm in the business of brokering real time data from motor vehicles. It reviews threats and opportunities; presents a series of statements relating to Little Brother's vision, mission, values and objectives; and sets out its proposed strategies and goals.

Download the financials spreadsheet

Threats & Opportunities

This business plan addresses the following key threats and opportunities for Little Brother:

Threats:

• Privacy issues with data
  
• Costs exceed revenues for government transportation infrastructure budget, threatening infrastructure application of technology
  
• Enrollment in engineering and technical programs is declining; personnel issue
  
• Federal transportation R & D budget has not increased in 25 years
  
• Venture capital is yet to be determined
  

Opportunities:

• Technology already exists to capture and record vehicle data
  
• Numerous potential implications for data (traffic, traveler info, fleet control, roadway maintenance, weather)
  
• Scale and use of U.S transport system, specifically highway system, is vast.
  
• New construction techniques permit replacement and upgrading of facilities with less disruption
  
• Potential to save time, money, lives
  

Vision

The promoter's vision of Little Brother in 3-4 year's time is:

Little Brother will be operating from a 5000 sq. ft. unit near Pittsburgh, PA. It will have annualized sales of $10 million. It will employ 35 people mainly engaged in R and D, marketing, support and admin. Little Brother will offer 3 core products and provide added-value services to a large customer base throughout the 5 market segments. Little Brother's offerings will be technically advanced and offer many clear-cut advantages and improvements over competitors' possible offerings. Little Brother will continue to expand through organic growth and acquisitions in related technology/market segments.

Mission Statement

The central purpose and role of Little Brother is defined as:

Little Brother harnesses the data gathered by a vehicle's on-board sensors. This data will be obtained from private motorists' vehicles, fleet-dependent businesses, emergency service vehicles, roadway agencies, and broadcast stations. Little Brother will analyze the data gathered from these sources to find ways to improve the areas of traffic control, traveler information, infrastructure (management, maintenance, and construction), fleet control, and weather and environmental modeling.

Corporate Values

The corporate values governing Little Brother's development will include the following:

• Little Brother operates in accordance with the highest standards in all relationships with customers, suppliers, environment and the community.
  
• Little Brother fosters a climate that encourages innovation and diligence amongst staff and rewards accordingly.
  

Longer-term business objectives of Little Brother are summarized as:

• Little Brother will develop the most advanced vehicle information and communications technology and use the acquired data to produce viable solutions for the problems in the areas of interest.
  
• Little Brother will establish lucrative, long-term contracts with the target consumers.
  

Key Strategies

Little Brother will pursue the following critical strategies:

• Seek new market segments/applications for products.
  
• Pursue strategic alliances with complementary players.
  
• Conduct Outreach/Recruitment program to attract top tier personnel.
  
• Make presence known and declare potential benefits via advertising, Internet, trade shows.
  

• Locate new premises in/near Pittsburgh, obtaining $15/sq.ft./month lease.
• Start participating in trade shows and markets.
  
• Pursue strategic alliances with complementary players such as On-Star or vehicle manufacturers.
  
• Create and strengthen online presence via web-site and web advertising.
  

Little Brother will achieve the following key targets over the next 3-4 years:

• Achieve sales of $10 million by 2005
  
• Report annualized profits of $2 million by 2005
  
• Secure 10% of each market segment by 2005
  
• Become the largest supplier of vehicle sensor data within 3 years
  
• Undertake an IPO by 2005
  
• Employ 35 people including 30% technically qualified by 2005
  
• Have sales offices or agents in 5 key markets before 2005
  

Strategic Action Programs

The following strategic action programs will be implemented:

• CEO: Develop contacts to raise venture capital in specified time frame.
  
• Technical Director: Review R and D resources and scope for technical alliances - expand with arrival of venture capital.
  
• CFO: Recruit marketing director and personal for marketing/sales staff.