Ismael Zarate and Anthony Waters www.virtualsolutions.org 825 East 9085 South Sandy, Utah 84070 (801) 826-6632 To provide effective VR headsets that lessen harmful emotions with pleasant, high-quality service and two day shipping for local hospitals and hypnotherapists to use on patients with high levels of anxiety and depression.
Table of Contents Executive Summary..............................................................1 Background...........................................................................3 Value Proposition...................................................................4 Customer Segment...............................................................6 Channel Block.......................................................................7 Key Partners..........................................................................8 Key Resources.....................................................................10 Market Evolution.................................................................11 Company Strengths.............................................................11 Company Weaknesses.........................................................13 Summary............................................................................. 15 How we can treat your brain by seeing your thoughts.
Executive Summary Committed to helping and diagnosing people with depression and critical anxiety, this company is dedicated to reaching out to those who think their problems have no solutions. The owners both currently have one year of training at the Canyons Technical Education Center in business management, business communications, and information management. The company will be focused on decreasing the amount of people who have severe issues with their personal thoughts. The company will focus on balancing quality and price as well so that we can put as much innovation into our products while making the price reasonable for our customers. The company believes that a person’s well-being should not come with a heavy economic burden. Several people struggle with thoughts that cause them great anxiety and depression. We would like to eliminate those thoughts as they are a major problem in the world since the beginning of time. Many people with thoughts causing anxiety and depression struggle with everyday tasks and building relationships with other individuals, our focus is to decrease the difficulty of dealing with the thoughts as we will sell the products to patients so they can examine brain function. The location will be in Utah for it has several great medical practices and therapists that are in the field of neurology. The location is also very easy to send and receive orders quickly across the entire world. The population globally is in rapid growth so we know that our products will be in 3
greater demand by neurologists. Many of these problems develop in a person while they are in their early to mid-teens so the demand will be greater within the next decade.
Reviewing the competitor’s statistics show that no one has really tried to release a product like this to analyze brain function and decrease the amounts of depressed and anxious people in the world. The competitors have developed different medications to help stop thoughts causing depression and anxiety, however, this is more of a guessing game whereas the product we offer will eliminate the need to guess medications. We want to eliminate the use of prescription medication that our competitors have used as their products for it can be both harmful and expensive. The competitors that offer technology that analyze brain function are currently charging a great amount for their products, however, all they can track is the movement of electronic signals sent through the brain. Our product will offer ways to see what is happening to cause the problem and then patients can be taken care of accordingly. The competitors are charging top dollar for their services. This will allow our company to develop and sell the products we have for a fair price which will then eliminate competition between us and the competitors. Their prices will be much higher than ours allowing us to steal their customers and giving the customers a better product. Not only that, we have added value to
our product to attract many more customers through the option of customization through simple online interview with a specialist and a doctor. When planning for the launch, a financial plan has been assembled for the first three years of operation. The start-up costs will be estimated around $750,000. We will acquire a loan of $637,500 which is approximately 85% of the start-up costs. Each owner will contribute $56,250 to meet the start-up requirements. In the first year of operation, we hope to make $277,500 in sales. The second year, we hope to make sales of $410,000 and the third year $446,500. After deducting operating costs, the profit net for the first year is expected to be $0 as we still have to pay off the start-up costs loan. The profit will increase each year until our third year where we break even and make a profit of approximately $62,400. We do understand that during start-up we will have negative cash flow for the first two and one third years but the following month, we will start gaining profit. We are projecting an expected balance the first year of $362,600. The second year we will have a balance of -$82,650. By the third year we expect to have a balance of $107,900. This balance will then increase each year thereafter.
Background This business idea was chosen because we strongly feel that we can help people who have unhealthy mental thoughts. We would like to be able
to help these people cope with their thoughts. The problem currently is how exactly we can diagnose, treat, and control those thoughts. To fix the problem we will be making a hologram virtual reality type product which will allow us to tap into the brains of people and measure and watch their brain waves when exposed to certain imagery and keep a database of the types of psychological stimuli that both hinders and activates brain activity. Doctors and therapists will then be able to understand what causes the negative emotions and how to help that person with their thoughts to properly control those emotions. This will be a breakthrough for we will be able to better understand our patients. Out business will provide services unlike current businesses today. The products will be uniquely made as we will implement the most recent and advanced technologies into our products. This company will be the preferred over all the competitors as we will provide unbeatable service and the most up to date and high tech products. We will provide the most pleasant and unbeatable service. This will keep us above the competition. The service will be provided around the clock to ensure that our customers get their questions answered and concerns listened to. Our customer base will be satisfied with our phone operators as they will have pleasant voices and a great ear to listen with. Our phone operators will be trained therapists who will know how to handle stressful situations and properly communicate with our customers.
The customers will call our company and immediately reach an operator on the phone. That operator will be an actual person. Our customers will then give us the reason for why they are calling and will be redirected to an expert in the field that their question or concern was on. This will ensure total customer satisfaction as we will always be able to be reached and will listen and deal with the questions and concerns accordingly. Our company will use the most up to date technology so that we have the fastest service and highest customer satisfaction. This technology will allow us to take in orders and get them shipped to the location desired within three business days.
Value Proposition The company will add value in several ways. The value added to this company will make it superior than its competitors. Value will be added in a series of ways all interlocked to ensure that the company has the best value. First, the company will add value by the newness of the product. Current methods work for analyzing brain function and watching what causes people to have negative emotions. The problem with the current methods is that they are outdated. We have not had any concise answer as to what exactly causes depression and anxiety and how to permanently solve the issue. The outdated methods cost time and money in business. That is why we will be adding a software into our virtual reality headset that will test our customers through displaying imagery and recording the brain waves and how they react to visual stimuli. We will then use that information and add it 7
to a “PVS” database that will slowly but concisely build a customized set of imageries to either stimulate or depress brain activity. This will lead into adding value by a cost reduction. By saving time, we save money. The money spent on current methods is much greater than is must be because of how long these methods take and how much expertise and knowledge one need to operate the machine. Our virtual reality headset will only take ten minutes of testing for our customers for one week and after that we will have enough information to work with our patients. The product we are going to sell will have greater performance than current products that are present today. Current products, as stated above, take time and expertise to know how to control them to work properly. Our product will primarily be used at home with software that records brain activity and using that information for us to come up with solutions that can help cure depression and anxiety. This will also make it more user friendly to the doctors and therapists who have our product to use that information to prescribe further treatment. The price of our product will be significantly less than products that are produced today. The product we will sell does require a significant amount of money to create. Other companies in the same market are supplying the same equipment. Our company will supply updated equipment and at a lower cost. This will make our products more valuable. The level of risk will be decreased as our product will have more time invested in it by the creators and software engineers. Other products 8
currently on the market allow for several mistakes to be made due to the lack of knowledge the users have because of the complex instructions on how to use the product. Our product will have fewer ways to go wrong and very brief instructions for a simple user experience. The products we will supply will have a different design than the products that are currently out there today. Our design will incorporate light weight material that will make the customer feel more relaxed when using it. We will also make our virtual reality headset customizable so that our customers can fit it according to their face shape. The final way value will be added to our virtual reality headset would be to make sure that our customers will be able to see clearly. Dr. Zarate and Dr. Waters found this to be useful since both wear glasses and despise using contacts. With “Virtual Solutions CD” we will be able to add a thin layer of prescription glass over the virtual reality headset so that those who need to see clearly get the full experience without contacts or glasses that could get in the way of using the headset.
Business Model Building Blocks Customer Segment Virtual Solutions wants to attract people who suffer from severe depression and anxiety because we know how critical it is to control those emotions and thoughts. Our customers feel betrayed and neglected by doctors and insurance companies that have tiredly gave up on them and 9
their issues without a single result after much money and time was invested by the patients. We want to make sure that we first let them know that they matter and that Virtual Solutions is a company designed for those who have felt like they have no answer to their problems. We want to attract all those people who are looking for a drug-free and doctor-free environment to improve their mental state. One of the key factors that is really going to attract our customers to stay with us and to purchase our products is the fact that our product can land in anyone’s hands. You do not need to have a pre-existing condition of mental health issues because we want people of all criteria to have access to our products. Also, one of the main reasons that so many people are still in deep depression and anxiety is because asking for help can be just as hard as the actual treatment. That is why our device will not be known as a device for just one group of people, but for a variety of people. Our customers will love that they can buy one of our headsets for their loved ones who have mental health issues and one for themselves to improve their well-being. We know that our customers may not like the fact that we use vr headsets but we will soon improve it to something better. Our customers will also see the value that we add to our products giving them the confidence they need to continue their virtual reality treatment. Our quality products with wonderful customer service will give them a sense of relaxation and hope that they may solve their issues by themselves.
Channel Block Virtual Solutions believes in using the most up to date technology. This technology will allow us to keep contact with our customers all day long for every day of the week. We will use telephones for our customer service department and these telephones will have people at them all day every day of the week. This will allow our customers to call us whenever they need with questions and concerns about our products. Virtual Solutions will have their own professionally developed website where customers can find out about our company, how to contact us, and the products we have made. This will ensure that our customers will know what they are purchasing and how it works before they actually make the purchase. The website will include a place to search through the products, select a product you are interested in, and purchase the product right there. The purchasing process will be simple as our consumers will be able to purchase their products with some credit card information. We will make sure to include shipping within two days for places within the United States and guaranteed multinational shipping within a week. The purchasing process will be extremely secure so that our customers will not have their credit card information stolen and sold to others. That will help our customers feel that they are making the right purchase with the right company and feel that they are fully protected by doing their purchase.
We will use online questionnaires for our customers so that they can rate the satisfaction of the product and ways we can improve the product and any of the functions our company offers for the consumers. These questionnaires will be sent out via email as we will request an email while the purchase is being made.
Key Partners We have five key partners that keep our business running. We are partnered with Mental Health America, American Counseling Association, Samsung, VR Company, and Amazon. These partners have really made us strong and able to make our products the great quality that they are. Each partner brings something new to the table and makes us unique from our competitors. Mental Health America has dedicated themselves to treating people with mental health issues for over 20 years and has since done outstanding research that could help virtual solutions to use it as secondary research to come up with ways to implement those ideas into our products. They help us come up with effective methods to help our patients when we expose them to visual imagery to help them feel better. They also have many screenings to effectively diagnose mental health issues and to accurately come up with the treatment needed. They will give us data that can help us distinguish between correlation and causation in the factors of what cause anxiety and depression.
American Counseling Association is also another key partner. We will sell our products to them and they will be our primary users before we start selling our headsets commercially. They are in charge of counseling people who have gone through trauma. They specialize in making sure their patients improve which is why they are going to be our primary customers. In return we do not ask for money, but for feedback to see if our product is working properly and what we need to improve on. Once we get the finished vr headset with all the software, we will start selling it to the public. Samsung and VR Company are both in the virtual reality business industry making them experts on to make headsets. We partnered with them to make our headset design and headset glass and screen for our customers to view. They are the best in the business because VR Company makes durable and light-weight designs for headsets so that the user gets the best experience possible. Samsung will be in charge of creating the screens with 4k display to create a realistic experience as well. Samsung is also responsible of the heart rate sensors that will be used for our headsets.
Key Resources Virtual Solutions will have several key resources that will put it above the competition. We will have a building that is large which will include all of our business functions from making the products to selling the products and customer service. We will also have some company vehicles to go pick up supplies to make our products from our suppliers. The sales system we have is either over the phone with a representative or online at our website. The 13
point of sales will be very easy and stress free. We will also use UPS as our company for distributing the products all over the world quickly. We will use some of the best quality materials to make our product so that it stays together and does not break easily. The product we create will be patented by us that way we can ensure that we do not have competition appearing easily. We will also have personnel that will do research on other companies and what they are doing so that we can stay at least one step ahead of other companies. This will be very beneficial to our company as we will stay far ahead of any competition. Virtual Solutions does offer some guarantees. Our guarantees are on satisfaction where we will make sure you are fully satisfied with our products of we will refund you the money for the product. For financial resources, we will gain sponsors and businesses that are interested in what we are doing and willing to give us money to continue our business.
Market Evolution Virtual Solutions is the first of its kind and we would not be surprised if others follow on our footsteps and make their own products similar to ours. The virtual reality world is going into full effect and it is expected to be expanded in the next five years. We know that our competitors will come up with new ways to make virtual reality and their customers more interactive with each other. It has been proposed that virtual reality will be used into a holographic way in the future. We know that we will need to evolve our 14
products to not change them but to improve them for our customers. That is why Virtua Solutions has hired a special team of technology analyzers who will investigate and come up with new ways to improve our Virtual Solutions headset and software programs. We want to continue to focus on improving our laser sensors and heat sensors so that we can get better and precise data into our PVS database. We plan to evolve within our own company to make virtual reality a commercial use item in every household. We want to make this product the new normal just like using a smartphone is a must. Virtual Solutions will be implementing new technology into its headset as soon as that technology has been tested and proved to work properly. Our most notable goal is for us to be the leading company of virtual reality headsets in the commercial market today.
Company Strengths Virtual solutions has possessed multiple strengths that help define our brand. Strength 1: Virtual Solutions has managed to put their customers (patients) first. Goal 1: We focus on the well-being of our customers no matter the odds. We focus on improving our customer’s depression and anxiety levels. Our goal is to have a minimum of a 97% positive rating on our company. To achieve this goal, we will make sure to be the friendliest to our customers on the phone. We will make 15
sure we have a personal connection with our customers to deeply show that we care about them. We will stop worrying about our customer satisfaction when we have a 97% positive review. Virtual Solutions will achieve this goal by the year 2025 as we will then be well known and still have the friendliest service. Goal 2: Virtual Solutions will continually be improving the virtual reality headset and software. Many of our competitors only focus on making money with their products while we focus on making a difference. Our goal is to have the most advanced headset technology for patients with depression and anxiety. To do this, we will have a team of researchers and software developers who specifically specialize in the software and comfort of our headsets. Virtual Solutions will have the most advanced headset technology by the year 2020 through conducting several hours of research on the competition and new technology being released. We don’t strive to “keep up” with the competition, we make our competitors keep up with us. This is necessary because it saves time and adds profit to our company. Strength 2: We want to continue to come up with long-term goals that will improve our company. Goal 1: For example, we are working on a new internet program called “Critical Solutions” that will be used for our customers who are in 16
deep stress or anxiety. The program will be accessible through a phone line and through a live-chat that will improve emergency contact with a certified therapist or counselor. The program will be fully developed and available by January 1, 2020. This is critical for our most depressed patients who might need someone to talk to at any time of the day needed. We will hire the right people and make sure they are fully trained before releasing the new program. Virtual Solutions will have all the bugs fixed in the software within the next two months. Then we can focus all of our attention on the employees so that we can ensure we deliver the best experience possible. The two years of training for each employee will include sending them out on 20 calls with the creators of the business. These calls will include going to people’s houses and therapists to help understand the diagnosis of these mental problems and how to help people cope with them in the most efficient way possible. Goal 2: We also plan on improving our Virtual Reality team because we believe that if we can get the right team on board then we will get the right results. Virtual Reality has proposed a 10% increase in all our team member’s salaries in the next seven years. We want to improve their way of living just as much as we do for our customers. One major goal that we have is that we plan to expand our analysis team by adding 80 new members by the end 17
of 2017. We plan to hire computer programmers to improve our software monthly so by the end of the year we will have twelve improvements for our customers on the software. Not only that, we want to hire a team of specialized analyzers who are up-todate technology practices that we could use to implement into our Virtual Solutions products. We also plan on hiring a management group to keep everyone at our company on task and working productively. Our management group will be hired by June 2018 and will be fully operational. To train the management team, we will run them through a course and several seminars to ensure they are the most time efficient, friendly, and productive managers. We will make each manager attend the Maximum Achievement seminar and the Time Management Seminar by the Franklin Covey Institute. Goal 3: We plan to team up with Samsung and Apple by our 10th anniversary as a public company to come up with ways to improve our headsets. We plan on improving our HD display to 4k quality and to come up with a 5k quality VR headset as well by utilizing the data collected by our research team. We plan on coming up with Bluetooth enabled earphones to enhance the Virtual Solution experience. Virtual Solutions will be working on revamping the VR headset design to make it slimmer and lighter.
We plan doing all this by 2026 after we have enough ideas with our partners.
Company Weaknesses Weakness 1: One fixable weakness that our company has is that we
only have one main product and software that makes up the Virtual Solutions Company. We only have the High Definition VR headset and the “PVS” software that records the data into our database. Goal 1: With rising competition around us in the virtual reality world, it is essential that more products and services be added to our company. Virtual Solutions will overcome this weakness by adding more products such as a new headset designed specifically for entertainment for individuals of all ages. This new headset would be used to watch movies, play games, and to experience new events. We want to be able to add this new headset by the year 2019. We will make sure that this headset is nothing like any virtual reality headset on the market. This new headset will be part of the Virtual Solutions family but it will be able to help get rid of boredom instead of mental issues. It will feature a quality sound system as well as a build in 4k display with an entry level of 8 GB of storage available for users. It will
also be able to be used to watch live sporting events like the super bowl and A-list concerts. Goal 2: Virtual Solutions wants our customers who are using the Virtual Solutions system to improve their experience through being able to have more options for them to purchase online through our website. We hope to be able to add products like yoga mats, water bottles, cooking books, and exercise mats to promote healthy living to further improve the overall experience. We hope to be able to sell these products by January 1, 2019 to add a diversified catalog of options so that we can attract customers who are not particularly interested in buying our Virtual Solutions headset. Weakness 2: Virtual Solutions tends to focus only on those who suffer from severe depression and anxiety and leave those with a lower level of these factors to the side. From the very beginning our mission statement we have tried to solve the issues of those who think they will never be able to fix them and not paid much attention to those who simply want to improve their well-being or decrease their negative emotions. We want our customer base to reach a full spectrum of individuals from different race, age, and gender. Goal 1: Virtual Solutions has to fix this issue by coming up with different software programs for those individuals who just plan on improving their inner thoughts. We will come up with an interactive simulation that will help those who are afraid of public 20
speaking to practice in a virtual reality and get a real feel of how it would feel if it was in the real moment. The new software would allow us to add public speaking situations, work related interview simulations, and face-to-face conflict simulations to help practice how to deal with those situations. We plan to be able to add all these simulations by the end of our second year to the public. The research team is working on the software currently to implement this new program by 2019. Goal 2: We want to be able to pair up with multiple retailers that could help us sell our headsets in different stores to help us get more diverse customers. We hope that our advertisement will help us get our point across to multiple people. We hope to be able to sell our product in both retail stores such as Samsung stores and also online through our website. Virtual Reality plans on getting this done by September of 2020.
Summary Virtual Solutions is dedicated to providing a positive experience with our products as we ensure our products are durable and effective. We feel we are going to be successful because our products have been patented and developed specifically for people with anxiety and depression. We understand that we are very strong in research to make our products more effective than the competition. We also understand we have some
weaknesses such as having only one product for a specific set of people. This also can be a strength however since there are many people who have anxiety and depression. Virtual Solutions will be able to provide for the people of the world and make the world a happier, positive place.