BUSINESS PROJECT: Distribution of sanitizers of cell phones in Asia

I start business project:
Distribution of disinfectors of cell phones in Asia.
I attract investments and partners by the end of 2015.
I start this project in 4. quarter 2015.

1. Expanded description of the project
The disinfector for cell phone kills 99,9% of microbes, viruses and bacteria. The first gadgets appeared 2 years ago, in 2012. At the moment 2 producers in the USA are we known: Cellblaster and Phonesoap. The first already has a distributor in China (but not active), at the second isn’t present so far. In China similar devices aren’t made. I will begin a work on advance of production in Shanghai, then in other large Chinese cities, and also in Hong Kong and Singapore.
In general initially was planned to begin the project in Moscow with free of charge to distribute gadgets in all restaurants of the city and actively to be advertized on “Gorbushka” and other specialized shopping centers. But the understanding came that the ruble exchange rate and economy of Russia is changeable. Stability and size of the market of Asia is more interesting!
Our major customers in Asia: online and offline retailers (80%), final buyers (20% of sales).
Business in 5 steps:
1. We employ the project manager, the Chinese with knowledge of English and with experience in distribution of electronics in China.
2. We meet producers of devices and we agree to become the exclusive distributor in China.
3. We involve performers for offline of advance and active sales.
4. We reach profitability.
5. We extend on other cities offline presence.

2. Marketing
The main emphasis on distribution offline and online to retailers
the site + advance of the site for Asia visitors
direct sale offline: mini-stands with promoters in:
shopping centers
large food stores
hospitals, medical establishment, stomatology
kindergartens and schools
expensive restaurants and KTV (karaoke)

3. What resources we need?
The project manager – Chineseman with knowledge of English and with experience in distribution of electronics in China.
Performers for offline of advance and for direct sales (promoters on racks)
0 USD registration of firm in Hong Kong and representations in Shanghai
0 USD creation of the site
0 USD the budget on Internet advance (in a month)
45000 USD purchase of devices (500 pieces)
2500 USD for purchase of 10 mini-stands, leaflets (one-time expenses )
1200 USD rent of 10 places (in a month)
1200 USD a salary for promoters (in a month)
2200 USD a salary for the project manager (in a month)
The project will be open within 6 business projects at once, under them the back-office and firm therefore parts of expenses at this project it won’t be simple will be created! Look details on the web site in the section “General Concept”

4. Plan for sales and profit
Detailed plan of sales and exit to payback here:
For the 3rd month, from the moment of hiring of the Project manager, we reach operational payback.
Monthly expenses: 4600 USD
Sales on months: 10, 30, 60, 90….. devices
Profitability point:
60 devices in a month, for the 3rd month of work, at purchase price of the device in 90 USD and a margin of 100%
The general plan – to sell a batch in 500 devices in 6 months. And 1100 more devices in 6 months.

5. What risks has the project?
Human factor. The head won’t have enough competences to realize the project or quickly to reach operational payback or he will want to be engaged in this business. Or competitors will entice him.
Competitors can appear very quickly.
Factor of zero demand.
Perhaps we won’t be able quickly to reach payback since demand will be rather low, sale of devices can be tightened and the got profit will be so as expenses.
Factor of “the first wave”. The first sales in retail will take place remarkably, but then sales can stop since devices in shops will be low in demand.
As dough, before purchase of 500 pieces,
It is possible to agree with several tens shops in Shanghai and to give on realization to them and to look at demand.
It is rather dangerous in respect of the competition if demand it is valid quite good. We are not producers!
It is possible to lease 10 places in shopping centers, to make racks, to employ promoters and to look at result in 2-3 weeks of sales, and in which places it is more expedient to be engaged in direct sales. But a rate is on distribution.
When the scheme of distribution is debugged, it will be possible to be engaged in other gadgets, for example: Narrative Clip Memoto Lifelogging.

On all questions write:
Yurlov Aleksandr Vladimirovich