buisiness plan-tewelllinkedin

Entrepreneurship

06-0137-0023

(24) Pages

AquaCool Technologies LLC

Table of Contents

Part I—Executive Summary ................................................................................... Page 3

Part II—Description of Proposed Business ........................................................... Page 4

Part III—Objectives of the Business ...................................................................... Page 5

Part IV—Proposed Business Strategies ................................................................. Page 5

Part V—Product(s) and/or Service(s) to be Provided .......................................... Page 7

Part VI—Management and Ownership of the Business ...................................... Page 9

Part VII—Marketing Analysis ............................................................................. Page 10

Part VIII—Financial Analysis .............................................................................. Page 13

Part IX—Supporting Documentation .................................................................. Page 16


Part I—Executive Summary

By developing innovation, and targeting key markets while providing advanced solutions,

AquaCool Technologies LLC (DBA AquaCool) will generate $270,000 of revenue by the first

year. A loan of $70,000 is being requested to acquire an inventory and to pay off the first year’s

major operating expenses so the business can focus on the essentials to start off and succeed.

The loan breakdown and predicted cash flow statement are described in Part VIII of this plan.

The business is a Limited Liability Company with Matthew Tewell as the Owner and General

Manager. Initially, the business will support a total of seven employees and five departments.

These include Engineering, Accounting, Sales, Service, and Shipping and Receiving. These all

report under one General Manager.

AquaCool focuses on small niche markets within the 21.7 billion dollar computer hardware

industry. Responding to opportunity, AquaCool has developed the Bare Die Mount product

family, a one of a kind solution for a common computing problem: overheating. By taking

advantage of selling online using eBay, Amazon, and an Ecommerce website, AquaCool will

appeal to both business and computer hobbyist markets that seek upgrades to their computer

systems. The eBay storefront and website home page design is located in Part IX–9.2.

All computers need cooling solutions, high performance systems such as the ones our target

markets use, need high performance options that AquaCool delivers. AquaCool’s competitive

edge derives from identifying the weaknesses of the competition, and responding to them with

better strategies. This strategy includes placing quality over quantity with item listing, item

category management, and extensive search engine optimization.

AquaCool’s business model incorporates the use of three elements:

1. Original hardware designer and vendor

2. Specialty computer hardware resale

3. Service, support, and installation

The business will mainly be sustained through designing new and original hardware. Hardware

resale through our stores will also be necessary to optimize usage of the marketplaces and to

further finance the business. Services are additionally offered as a solution to computer novices

that desire our professional and expert installation of our products.

The company logo is located in Part IX–9.2.1.


Part II—Description of Proposed Business

AquaCool Technologies LLC is a business startup to be owned and operated by its founder,

Matthew Tewell. It was formed to fill the market’s demand for quieter and cooler running

computer systems. The business utilizes an Ecommerce website and several online marketplaces

to sell specialty computer hardware and services for all types of systems. Usage of phone and

web orders processed through a secure merchant credit card processor, PayPal, and an AR charge

system will also be necessary. Through this flexible system we can deliver a wide range of

products to our clients that rely on computer systems for their business and recreational needs.

2.1 Business Model

Currently, there are three aspects of the business:

1. Original hardware designer and vendor

2. Specialty computer hardware resale

3. Service, support, and installation

As a computer hardware vendor, AquaCool will design original hardware such as the innovative

solution that solves a common problem with computing, the Bare Die Mount (details located in

Part IX–9.1.1). These products start by being designed from AquaCools’s engineering

department using CAD/CAM software. The approved drafts are sent to a domestic manufacture

for production. After production the units will be shipped through an industry standard freight

process. This process is outlined in Part IX–9.1.4). Finally, the products are ready to be

individually packaged and received via the inventory management software.

As a specialty computer hardware reseller, products are purchased through various distributors to

be resold through our marketplaces. This specialty hardware includes computer cooling

hardware and appearance accessories. Reselling hardware provides the business with cash flow

and return customers to further finance the business.

AquaCool also provides service, support, and installation through the Ecommerce website and

the eBay store. Typical services include Installation and Performance work. The services are

mainly offered as a solution for computer novices for professional installation and service.

2.2 Company Locations and Management

2.2.1 Corporate Headquarters

- Youngstown, Ohio

2.2.2 Management

- Privately held Limited Liability Company


Part III—Objectives of the Business

3.1 Mission Statement

AquaCool is built on the theory that information technology services; network consulting,

graphic arts, and engineering, are not inherently a do-it-yourself prospect. Business

professionals whom may not be system experts often rely on information technology as the

backbone of their business. These clients need to find quality vendors of reliable hardware to

substantiate their organization’s needs.

3.2 Vision Statement

Providing business clients with the loyalties of a business partner with the economics of an

outside vendor is the highest priority. As a computer hardware and service provider, AquaCool

makes sure the client’s equipment, whether at home or at work runs with maximum efficiency

and reliability. AquaCool seeks to become a leader in the computer cooling market.

3.3 Objectives

- Effectively sell products to the home hobbyist and commercial markets.

- Increase total sales to more than $800,000 by the third year.

- Maintain at least 30% gross margin each year.

- Provide business clients the solutions they need that are cost effective.

3.4 Keys to Success

- Increase service sales to 20% of total sales each year and maintain that.

- Merchandize products into categories on eBay for easy navigation.

- Maintain at least 35% profit margin for all hardware resale products.

- Establish a history with various distributors for bulk ordering discounts.

- Differentiate from the competition by offering a better online shopping experience.

Part IV—Proposed Business Strategies

4.1 Short Term Goals

4.1.1 Design the BDM-2011 model of the Bare Die Mount after investor funding.

4.1.2 Acquire space from the Youngstown Business Incubator for our corporate

headquarters and initial service center locations.

4.1.3 Register a domain name for the Ecommerce website, www.AquaCool-Tech.com

4.1.4 Purchase all necessary office equipment upon investor funding.

4.2 Accomplished Goals

4.2.1 Design the BDM-1155 Bare Die Mount model (engineering design in Part IX–9.2.6)

4.2.2 Acquire a manufacturing quotation (located in Part IX–9.1.4)

4.2.3 Design an eBay storefront (design located in Part IX–9.2.2)

4.2.4 Design the front end for the Ecommerce website (design located in Part IX–9.2.4)


4.3 Long Term Goals and Future Plans

4.3.1 Use net profits as working capital to finance a larger inventory with more variety of

products to support return customers.

4.3.2 Grow into a regional service business providing liquid cooling service contracts and

on-site guarantees for small to medium sized business after 2017.

4.3.3 Open new positions as necessary to fulfill this growth.

4.3.4 Acquire another location to serve as a service center for services ordered online.

4.4 Payment Processing

4.4.1 PayPal credit card processing for 2.9% + $0.30 transaction fees.

4.4.2 PayPal to PayPal transactions induce a 2.5% transaction fee.

4.4.3 Shopify credit card processing 2.17% transaction fee.

4.4.4 Accounts receivable store credit.

4.5 Promotion

4.5.1 Large Facebook advertising campaigns.

4.5.2 Facebook page management (located in Part IX–9.2.3).

4.5.3 Advertising on specific forums such as ExtremeTech.com and overclock.net.

4.5.4 Search engine optimization handled by Shopify for the Ecommerce website.

4.5.5 Website will supply sales literature such as product brochures and catalogs.

4.6 Legal

4.6.1 Patent both designs of the Bare Die Mount.

4.6.2 Trademark AquaCool Technologies, the company logo, and the Bare Die Mount, to

keep the business protected under law.

4.7 Strategy and Implementation Summary

AquaCool attracts customers using various promotion tools such as search engine optimization,

social media, and forum advertisement to endorse the products. AquaCool will mainly use eBay

and the Ecommerce website for sales but will also fulfill orders through Amazon. Only items in

the inventory will be listed for sale, this is due to restrictions set by eBay’s policies. Drop

shipping methods and special orders will not be used because of this reason.

AquaCool will have a sales force consisting of two employees. These employees will manage

both the Ecommerce website and the eBay store. They will be also in charge of manual credit

card processing if necessary. In most cases the payment processing is handled automatically by

either PayPal or Shopify’s merchant processing. This method is typically reserved for bulk

ordering purchase orders.

The Bare Die Mount is only offered on eBay because it will be sold directly to the end consumer.

Serving as a distributor for the Bare Die Mount is not worth the risk due to lower margins and

the nature of this highly niche-oriented product.


Part V—Product(s) and/or Service(s) to be Provided

As a specialty computer hardware seller, we carry and sell both products designed by AquaCool

as well as products from established brands that can be used alongside with ours.

PowerParts is a complete line of cooling system hardware and accessories that enhance the

cooling performance of computer systems. It contains products that are designed by AquaCool

and from other brands. It is the most important line offered because all computers need cooling

systems. High performance machines, in which the hobbyists and businesses use, need custom

solutions that this line provides.

Aesthetics is another line carrying a variety of items that enhance the appearance of computer

systems for the computer hobbyist market. These products are ordered from distributors.

Hardware resale from other vendors will be used to maximize marketplace usage and to further

finance the business. Services are also offered and later discussed in section 5.2. Funding for

the initial inventory, broken down in Part VIII–8.4, is requested to get started.

5.2 Products Offered

5.2.1 PowerParts

PowerParts is used to fill the gap between computer hobbyists and businesses. Among this

line are individual cooling hardware, complete cooling units, and accessories. Its key

specifications include customization and versatility for adoption in any system.

5.2.1.1 AquaCool’s products

- The most important system offered for computer hobbyists and businesses. Initially

it will support the Bare Die Mount product family of computer cooling accessories.

- Bare Die Mount specifications located in Part IX–9.1.1.

- Future products include additional models of the Bare Die Mount for different

computer processors and systems.

- Additionally, universal water cooling radiator brackets will be designed for fixed

wall mount server racks, mobile server racks, and fixed full size server racks.

- Future ideas will also include ventilation displacers for workstations and servers as

an alternative to costly air conditioning.

5.2.1.2 Cooling hardware resale

- A secondary product system that will be used to further finance the business and to

maximize usage of the marketplaces.

- Products include other brands of cooling systems and components such as water

cooling components and accessories; plug and play All in One systems (AIO units

broken down in Part IX–8.4), and other cooling accessories such as cooling fans.

5.2.2 Aesthetics

- Specializes in improving the appearance of computer systems.

- Items include lighting accessories, colored braided cables, and laser-cut fan grills.


5.2 Services Offered

5.2.1 Installation Services

5.2.1.1 Mainstream liquid cooling

- Custom solution as a first step up above the AIO product line, this service offers the

basic install of a liquid cooling system into a desktop computer system.

- Only covers the cooling of a single computer processor.

- Customizable tubing and fitting color options available.

- $400 Flat rate price.

- $250 Average cost in parts.

- $150 Average profit.

5.2.1.2 Performance liquid cooling

- A step up from Mainstream option in that the installation covers the cooling of

more components. In particular a single processor and a single video adapter.

- Offers more cooling dissipation options than the Mainstream option such as a single

360mm or 420mm radiator.

- Customizable tubing and fitting color options available.

- $650 Flat rate price.

- $400 Average cost in parts.

- $250 Average profit.

5.2.1.3 Enthusiast liquid cooling

- Offers the most flexibility in heat dissipation options such as large stacked

radiators, multi radiators, and passive radiators.

- Can be configured to cool multiple video adapters, multiple processors, RAM and

other system devices.

- Loop design and color choice is consulted with the customer.

- Price is total parts cost and 40% service fee.

- Estimated total cost in parts to be above $850.

- Service Fee is 40%.

5.2.2 Performance work

5.2.2.1 Delidding

- Processor heat spreader removal service.

- With the combination of the Bare Die Mount bracket, a reduction in operating

temperatures on computer systems can be achieved.

- $49.95 Flat rate price.

- 10 Minutes per operation.

- $299 of revenue per six modifications.

- Performance gains documented in Part IX–9.2.5.


5.3 Service Fulfillment Process

1. The customer orders either flat rate service and pays for shipping both ways.

(B) The customer commits to buy the Enthusiast liquid cooling service.

2. The customer ships the item to be modified to our service center location.

(B) The customer is called and consulted about the system’s needs.

3. The customer ships the system or component to our location and the work is performed.

4. The system is shipped back to the customer.

(B) The customer is sent a final invoice through PayPal specifying the total cost including

shipping.

Part VI—Management and Ownership of the Business

6.1 Organizational Chart

6.2 Management Summary

Matthew Tewell is the founder of AquaCool Technologies, LLC and serves as the General

Manager. He has a proven track record of Ecommerce store management and experience with

product development. He is a key player in the organization from his industry experience using

eBay and ARI Network Services.

The general manager is in charge of directing each department to making sure the business meets

the company vision. There are six departments within the company. Engineering is responsible

for product design. Accounting is responsible for accounts receiving, purchasing, and business

administration. The sales force includes two employees; both manage the ecommerce aspects of

the business. Experience with eBay and HTML is essential. The shipping and receiving

department is responsible for shipping items to customers and receiving product into the

inventory management system. Service is responsible for installing and preforming service work

for customer equipment sent to the service center.

We plan on hiring two full time field technicians by early 2018 to support our acquisition into

the regional field installation and consulting field. The total budget for salaries is $150,000 for

the first year. The individual salaries are negotiated with the employees.

General Manager

(1)

Engineering

(1)

Accounting

(1)

Sales

(2)

Shipping and Recieving

(1)

Service

(1)


Part VII—Marketing Analysis

AquaCool focuses on both national and international sales that products and services can be

purchased online and delivered through direct mail. The target markets include both the

computer hobbyist and business markets. These markets both need computers for their

recreational and work usage. They need our products because all computers need cooling

solutions. High performance machines such as the ones our target market’s use need the

solutions that AquaCool provides.

7.1 Indirect Competitors

There are three main types of computer stores within the industry including:

1. Computer dealers: Focused on a few main brands of hardware, their service and

support is usually not very good and their prices are higher than the larger stores.

Nearly all large enterprises (250+ employees) buy boxed systems from these computer

dealers for faster deployment of systems and common hardware grounds for system

upkeep. Often, these systems are not as effective as custom made systems.

2. Mail order computer superstores: Focusing on having high availability with massive

catalogs of products, they often have very aggressive pricing, and little support. The

major disadvantage from the perspective of the consumer is the lack of detail for

individual products listed on the marketplace. For a computer superstore to be

successful, product must be accurately described with in-depth product information.

Merchandizing products into categories is critical as well as intuitive navigation of the

marketplace that direct high volume traffic into purchases is essential.

3. Mail order computer hardware stores: These stores offer competitive pricing of

boxed products. For the purely price-oriented buyer, who buys boxes and expects no

service, these are very good choices. This model of resellers orients to niche markets,

because they can focus on providing that niche with a very specific solution.

AquaCool is based off of the mail order computer hardware store model. This model works best

because it responds to the market’s demand. The market has shown that it buys based off of

price and any potential benefits. Once a reliable distribution network is established, we can

fulfill this demand and build up a reputation as a reliable computer hardware vendor and reseller.


7.2 Market Segmentation

7.2. Home computer hobbyist market ($21.7 Billion as of 2015, Part IX–9.3, Source 3)

7.2.1. Mainstream PC gamers (26% Market share)

7.2.2. Performance PC gamers (30% Market share)

7.2.3. Enthusiast PC gamers (44% Market Share)

7.3. Commercial computer market ($63 Billion as of 2011, Part IX–9.3, Source 4)

7.3.1. Small businesses

- Less than 50 employees with 10 to 25 workstations which may include up to 5

high performance work stations.

7.3.2. Medium sized businesses

- 50 to 250 Employees with more than a hundred workstations which may include

10 to 50 high performance workstations.

7.3 Home Computer Hobbyist Market

1. Mainstream

Consumers in this category are most likely to purchase a prebuilt system. They are

gaming hobbyists, not necessarily hardware experts. They are more likely to order our

services, not our hardware.

2. Performance

Consumers in this category are likely to custom build a gaming system and have the

product knowledge of our hardware. They are more likely to purchase Aesthetics, and

not PowerParts.

3. Enthusiast

Consumers in this category are the likeliest to buy our products, if competitively priced

and if the products supply the solutions they need. They are hardware experts and

enjoy installing the equipment themselves.

The High End PC market is not only for gaming, it also includes high end workstations that can

be dual functioned for recreational use and for work use.

Ted Pollak, Senior Gaming Analyst at Jon Peddie Research notes that the 21.5 billion dollar

industry is twice the size of the console gaming system market. He has also stated:

“We continue to see a shift in casual console customers moving to mobile. While

this is also occurring in the lower end PC gaming world, more money is being

directed to mid and high range PC builds and upgrades by gamers. Committed

PC gamers are generally not interested in pure content consumption platforms.

They are power users and pay thousands for the ability to play games at very high

settings and then do business, video/photo editing, content creation and other

tasks with maximum horsepower at their disposal in a desktop ergonomic

environment.” (Part IX–9.3, Source 3)


7.4 Market Needs

All computers need cooling systems. High performance machines such as the ones the hobbyists

and businesses use need high performance cooling systems and custom solutions that AquaCool

provides.

Businesses and enterprises are used to buying computer equipment through computer dealers

who do not provide the customization or the service optimal for their organization’s needs.

These businesses typically do not purchase custom computer systems; they prefer the common

hardware grounds that a centralized vendor can provide. This comes with a drawback, often

times these systems run at hotter temperatures due to overlooked design limits of the machine.

This can result over time with higher failure rates and data losses. The commercial market

imposes a huge potential for AquaCool, particularly the Bare Die Mount. Applications of this

product can result in up to a 20°C load temperature decrease (Part IX–9.2.5) that previously, only

costly water cooling applications could obtain.

7.5 Competitive Edge

A common expectation that sellers assume is that the customers fully understand the products

listed. In many cases this is not true. The Enthusiast user may, but not necessarily the

Mainstream user. AquaCool has perfected a category system that is easily navigated. This is

critical to direct traffic into making informed transactions. This will give the store the

competitive edge to differentiate ourselves in the market.

AquaCool also provides free technical support through the use of emailing and phone to establish

positive customer satisfaction and increase repeat customers.

7.6 Pricing Policy

7.6.1 Bare Die Mount

The Bare Die Mount cost to produce is based off the manufacturing method. Currently, using

the plastic injection molding method, the cost to produce each unit is $0.75, excluding the

tooling which is counted as an asset. The MSRP for the BDM-1155 model is $49.99. The

BDM-2011 model is $99.99. The Bare Die Mount price is based off of performance gains. The

market has shown that it is willing to pay hundreds more for water cooling systems that have less

performance gains than the Bare Die Mount.

7.6.2 Hardware Resale

Ordering costs are part of a margin squeeze. The hardware vendors dictate the MSRP value.

Due to the lack of true distribution channels that other industries have, our costs are based off of

bulk ordering discounts set by the distributors. Often times these distributors are the vendors

themselves. In this case, to take advantage of lower costs, the inventory must be bulk ordered.


Part VIII—Financial Analysis

8.1 Loan Breakdown and Usage

Item Frequency Amount Total

Inventory (Breakdown in 8.4) Per Year 42,348 42,348

Office and Shipping Supplies Per Year 5,000 5,000

Promotion Per Year 2,000 2,000

Mold Manufacturing Per BDM Model (2) 5,112 10,225

Patent Fee's Per BDM Model (2) 65 130

Office Space Rent Per Month (12) 400 4,800

Office Utilities Per Month (12) 300 3,600

Business License One time 125 125

Front End Ecommerce Website Development One time 100 100

Shopify Ecommerce Website Back End Per Year 179 179

Credit Card Readers Per Unit (2) 199 399

Overhead Expenses N/A 1,092 1,092

Total Loan Usage 56,922 70,000

8.2 Predicted Cash Flow Statement

Projected Period 2015 2016 2017

Revenue

Bare Die Mount Sales 174,980 174,980 174,980

Resale Hardware Sales 50,901 50,901 50,901

Services 45,176 45,176 45,176

Total Revenue 271,057 271,057 271,057

Expenses

Inventory Provided by loan 43,848 42,348

eBay Fees (12.5%) 33,882 33,882 33,882

eBay Store Yearly Subscription Fees 180 180 180

Office Supplies Provided by loan 5,000 5,000

Promotion Provided by loan 2,000 2,000

Salaries 150,000 150,000 150,000

Mold Manufacturing Provided by loan 0 0

Patent Fee's Provided by loan 0 0

Property Utilities Provided by loan 3,600 3,600

Property Rent Provided by loan 4,800 4,800

Research and Development 1,000 800 500

Total Expenses $185,062 244,110 242,310

Net Income 85,995 26,947 26,947


8.4 Inventory Breakdown

Vendor Part Description Quantity and Price Order

Cost

Resale

Value

Net Sales

AquaCool BDM-1155

BDM-2011

500 Units x $0.75

1,500 Units x $0.75

$375 $1,125

$24,995

$149,985

$24,620

$148,860

Alpha Cool

(Quoted

from

FrozenCPU

.com, Inc)

3/8” x 5/8” Comp. Fitting

45° Angle Adptr. - CH.

45° Angle Adptr. - BL.

90° Angle Adptr. - CH.

90° Angle Adptr. - BL.

30 Units x $5.00

20 Units x $3.99

20 Units x $3.99

15 Units x $5.99

15 Units x $5.99

$150.00

$79.80

$79.80

$80.85

$80.85

$224.70

$139.80

$139.80

$134.85

$134.85

$74.70

$54.00

$54.00

$54.00

$54.00

Phobya

(Quoted

from

FrozenCPU

.com, Inc)

Green 1000mL Coolant

Red 1000mL Coolant

3/8” x 5/8” Comp. Fitting - SL.

3/8” x 5/8” Comp. Fitting - BL.

3/8” Barb Fitting - BL.

3/8” Barb Fitting - GLD.

3/8” Barb Fitting - SL.

10 Units x $9.99

10 Units x $9.99

25 Units x $3.99

25 Units x $3.99

15 Units x $1.99

15 Units x $1.99

15 Units x $1.99

$99.99

$99.99

$99.75

$99.75

$29.85

$29.85

$29.85

$159.90

$159.90

$174.75

$174.75

$59.85

$59.85

$59.85

$59.91

$59.91

$75.00

$75.00

$30.00

$30.00

$30.00

PrimoChill

(Quoted

from

FrozenCPU

.com, Inc)

3/8” x 5/8” GR. Tubing

3/8” x 5/8” WH. Tubing

3/8” x 5/8” Rubber Tubing

7/16” x 5/8” UV GR. Tubing

7/16” x 5/8” WH. Tubing

7/16” x 5/8” UV BLU. Tubing

7/16” x 5/8” BL. Tubing

100 Feet x $1.50/Ft

100 Feet x $1.50/Ft

300 Feet x $1.50/Ft

80 Feet x $1.50/Ft

80 Feet x $1.50/Ft

80 Feet x $1.50/Ft

50 Feet x $1.50/Ft

$150.00

$150.00

$450.00

$120.00

$120.00

$120.00

$75.00

$250.00

$250.00

$ 630.00

$200.00

$200.00

$200.00

$125.00

$100.00

$100.00

$180.00

$80.00

$80.00

$80.00

$50.00

Bitspower

(Quoted

from

FrozenCPU

.com, Inc)

3/8” x 5/8” Comp. Fitting - CH.

3/8” x 5/8” Comp. Fitting - Bl.

Rotary Ext. - SL.

Rotary Ext. - BL.

Rotary Ext. - WH.

50 Units x $8.99

50 Units x $8.99

25 Units x $7.99

25 Units x $7.99

25 Units x $7.99

$449.50

$449.50

$199.75

$199.75

$199.75

$649.50

$649.50

$249.75

$249.75

$249.75

$200.00

$200.00

$50.00

$50.00

$50.00

XSPC

(Quoted

from

FrozenCPU

.com, Inc)





45° Rotary Adptr. - CH.

45° Rotary Adptr. - BL.

90° Rotary Adptr. - CH.

90° Rotary Adptr. - BL.

3/8” Barb Fitting - CH.

1/2” Barb Fitting - BL.

1/2” Barb Fitting - CH.

SLI Flow Bridge

240mm Radiator

280mm Radiator

25 Units x $3.99

25 Units x $3.99

20 Units x $3.99

20 Units x $3.99

15 Units x $3.99

15 Units x $3.99

10 Units x $4.99

10 Units x $4.99

15 Units x $.99

10 Units x $.99

10 Units x $.99

5 Units x $6.99

10 Units x $39.99

10 Units x $44.99

$99.75

$99.75

$79.80

$79.80

$59.85

$59.85

$49.90

$49.90

$14.85

$14.85

$14.85

$34.95

$399.90

$449.90

$149.75

$149.75

$119.80

$119.80

$97.35

$97.35

$69.90

$69.90

$33.75

$22.50

$22.50

$59.95

$549.50

$629.90

$50.00

$50.00

$40.00

$40.00

$37.50

$37.50

$20.00

$20.00

$18.90

$7.65

$7.65

$25.00

$149.10

$180.00


360mm Radiator

420mm Radiator

Raystorm Intel 1155 CPU Block

Raystorm Intel 2011 CPU Block

Drive Bay Res. and Pump COM.

D5 Variation Pump

170mm Tube Res. Pump Combo

270mm Tube Res. Pump Combo

3/8” x 5/8” UV BL. Tubing

3/8” x 5/8” UV GR. Tubing

3/8” x 5/8” WH. Tubing

3/8” x 5/8” CL. Tubing

10 Units x $54.99

10 Units x $59.99

10 Units x $39.99

10 Units x $39.99

10 Units x $114.99

15 Units x $69.99

5 Units x $119.99

5 Units x $124.99

50 Feet x $1.99/Ft

50 Feet x $1.99/Ft

50 Feet x $1.99/Ft

25 Feet x $1.99/Ft

$549.90

$599.90

$399.90

$399.90

$1,149.90

$1,049.85

$599.95

$624.95

$99.50

$99.50

$99.50

$49.75

$999.90

$749.90

$599.90

$599.90

$1,499.90

$1,349.85

$749.95

$799.95

$125.00

$125.00

$125.00

$75.00

$450.00

$150.00

$200.00

$200.00

$350.00

$300.00

$150.00

$175.00

$25.50

$25.50

$25.50

$25.25

EKWB

(Quoted

From EK

Waterblock

d.o.o)

110mm Tube Res.

150mm Tube Res.

250mm Tube Res.

1000mL UV Lime GR. Fluid

1000mL UV BLU. Fluid

1000mL Red Fluid

Intel Cooling Block - Acetal

Intel Cooling Block - Copper

Intel Cooling Block - Nickel

AMD Cooling Block - Acetal

AMD Cooling Block - Copper

AMD Cooling Block - Nickel

GTX 780/Titan Cooling Block

GTX 980 Cooling Block

5 Units x $29.99

5 Units x $49.99

5 Units x $44.99

10 Units x $6.99

10 Units x $6.99

10 Units x $6.99

5 Units x $49.99

5 Units x $69.99

5 Units x $69.99

5 Units x $49.99

5 Units x $69.99

5 Units x $69.99

10 Units x $89.99

20 Units x $89.99

$149.95

$249.95

$224.95

$66.90

$66.90

$66.90

$249.95

$349.95

$349.95

$249.95

$349.95

$349.95

$899.90

$1,799.80

$229.75

$274.50

$314.95

$99.90

$99.90

$99.90

$374.95

$484.95

$484.95

$374.95

$464.95

$464.95

$1,349.90

$2,599.80

$79.80

$24.55

$90.00

$33.00

$33.00

$33.00

$125.00

$135.00

$135.00

$125.00

$135.00

$135.00

$450.00

$800.00

Corsair

(Quoted

From

Corsair

Component

s, Inc)

H75 AIO System

H80i AIO System

H100i AIO System

H105 AIO System

H110 AIO System

5 Units x $59.99

5 Units x $69.99

10 Units x $89.99

10 Units x $89.99

10 Units x $99.99

$299.95

$349.95

$899.90

$899.90

$999.90

$424.95

$549.95

$1,249.90

$1,249.90

$1,299.90

$125.00

$200.00

$350.00

$350.00

$300.00

Swiftech

(Quoted

from

FrozenCPU

.com, Inc)

8-Way PWM Cable Splitter

MCP655 Water Pump


7970 Cooling Block


R9 Cooling Block

50 Units x $4.99

20 Units x $79.90

25 Units x $100.00

25 Units x $110.00

25 Units x $100.00

30 Units x $100

$249.50

$1,599.80

$2,500.00

$2,750.00

$2,500.00

$3,000.00

$499.50

$2,399.00

$3,999.75

$4,499.75

$3,749.75

$5,399.70

$250.00

$799.20

$1,499.75

$1,749.75

$1,249.75

$2,399.70

Paratherm Paratherm NF Transfer Oil

55 Gallons

$1,278.20 +

$528.45 Freight

$1,806.65 $2,273.92 $677.68

Misc. Extra Overhead for Other Items N/A $5,000 N/A N/A

Total $42,348 $225,881 $183,533

Net Sales of Inventory $183,533


Part IX—Supporting Documentation

9.1 Appendix

9.1.1 Bare Die Mount Product Family

The Bare Die Mount is product family of replacement retention brackets designed by AquaCool

Technologies LLC. These products allow all platforms of computer systems to run cooler and

increase overhead for overclocking (increasing performance). The different models of this

product family are named after the types of sockets and processors they fit.

Overheating on the Intel Core i series Ivy Bridge and Haswell processors during load is prevalent

in many systems. Overheating in this case is caused by the chipset vendors applying inefficient

thermal compound between the processor die, and the aluminum heat spreader attached to it

(also known as IHS1). The lower grade thermal compound and the combination of the IHS are

shown in tests (Part IX–9.2.7) to reduce cooling efficiency of the system (Part IX–9.2.5).

When the modification, “delidding” is performed, the IHS is removed and exposes the CPU die.

With the installation of the Bare Die Mount retention bracket2, the cooling system has a direct

thermal connection to the processor die, resulting in lower load temperatures.

AquaCool did not invent the delidding modification, AquaCool invented the alternate retention

bracket that serves as an easy to install for delidded computer processors.

The BDM-1155 is a retention bracket designed for Intel LGA-1155 sockets, with an install base

typically in high end home desktops and in medium end workstations. The BDM-2011 is the

same concept but is designed to work with LGA-2011 sockets. Computers with an LGA-2011

socket and processor are typically very high end with an install base in data centers, servers, and

high end workstations.

9.1.2 Bare Die Mount Production Costs

The unit cost to produce either model of the Bare Die Mount is $0.75 once the molding

and tooling is manufactured. The initial cost to produce both models is $11,412

including molding cost. The quoted cost estimate from the manufacturer is located in

9.1.4.

1 IHS is an acronym for “Intel Heat Spreader”.

2 The retention bracket firmly applies pressure on the processor for necessary electrical connection.


AquaCool Technologies LLC [email protected] 330-651-2332

9.1.3 Logistics

9.1.3.1 FOB Origin

- Epsilon Industries, Inc. will ship freight on board (FOB) to Dallas for no added charge.

9.1.3.2 Shipping Agent and Transloading

- At the FOB Origin a shipping agent will be contracted as needed to transload the freight

for the carrier to further transport

9.1.3.3 Freight Carrier and DAP

- Carrier: UPS

- Service: UPS Freight LTL

- Deliver at point: Warehouse facility in Youngstown, Ohio

9.1.3.4 Freight Class and Rate

- Freight Class: 150

- Quoted Rate: 528.45 USD (extra overhead cost in Cash Flow Statement)

9.1.4 Bare Die Mount Quotatation


9.1.5 Youngstown Business Incubator

9.1.5.1 Features and Support

- Variety of office space ranging from 110 - 825 square feet. This can be configured to

accommodate company growth.

- Very flexible terms with options for free rent period and modest lease rates.

- Access to office, technology, and prototype testing equipment

- Conference rooms range from 8 - 60 seats

- Break room including free coffee, digital screens, vending machines, and a wide variety

of snacks to create a stress free environment for employees

- Secure 50 slot parking facility

- Access to a climate controlled warehouse with storage equipment

- Commercialization process support

- Counseling on marketing strategies

- 3D printers and additive manufacturing technology Support

9.1.5.2 Location

- 241 West Federal Street, Youngstown, Ohio

9.2 Supporting Media

Figure 9.2.1 Company Logo


Figure 9.2.2 Preliminary eBay Store Front Design

AquaCool


Figure 9.2.3 Facebook Page

(Individuals Blurred for

Privacy)


Figure 9.2.4 Preliminary Website Home Page Design

Works Cited Source 2 and Source 5


Figures 9.2.4 – 9.2.5 BDM-1155 Prototype Model and Delidding Modification Results

Figure 9.2.6 Final Engineering Design of BDM-1155

(Works Cited Source 3)


Figure 9.2.7 Delidding Modification Performance Comparison

Figure 9.2.8 LGA-1155 Stock Retention Bracket Application

Figure 9.2.9 Computer Gaming Hardware Industry Market




9.3 Works Cited

1) "8 Reasons Consumers Like To Shop Online – Cater To Them For Online Retail

Success." UpstreamCommerce. N.p., 14 Feb. 2012. Web. 31 Mar. 2015.

<http://upstreamcommerce.com/blog/2012/02/14/8-reasons-consumer-likes-shop-

online>.

2) "Apogee HD - Rouchon Industries Inc., Dba Swiftech - PC Liquid Cooling Systems CPU

Cooler VGA Water Block Heatsink Pump Radiator Heat Exchanger Kit." Swiftech. N.p.,

n.d. Web. 31 Mar. 2015. <http://www.swiftech.com/ApogeeHD.aspx>.

3) Peddie, Jon. "Jon Peddie Research - a Technically Oriented Marketing, Research, and

Management Consulting Firm in the Graphics Industry." PC Gaming Hardware Market

Report. Jon Peddie Research, n.d. Web. 22 Feb. 2015.

<http://jonpeddie.com/publications/pc_gaming_hardware_market_report/>.

4) "Server Market Forecast - Cloud Computing And The Coming Recession." ITCandor.

N.p., 06 Sept. 2011. Web. 22 Feb. 2015. <http://www.itcandor.com/server-forecast-

q311/>.

5) "SlashGear 16Core Water Cooled Opteron Server." Overclock.net. N.p., n.d. Web. 31

Mar. 2015. <http://www.overclock.net/t/470314/slashgear-16core-4x4-water-cooled-

opteron-server>.

6) User, “Delidded my i7-3770K, loaded temperatures drop by 20°C at 4.7GHz” #1

AnandTech < http://forums.anandtech.com/showthread.php?t=2261855>

buisiness plan-tewelllinkedin

Documents

aquacools business model

ivproposed business

website home page design

computer hobbyist markets

computer systems

original hardware designer

target markets

key markets