 |
Goes like this;
Phase one is budgeted for one year but can probably be completed in six months. The accelerated completion time will allow for a reduction in salaries budget component to apply to unexpected cost overruns in the research and development budget.
In Phase one we develop and demonstrate the first
working prototype. Be it a Tesla Turbine or a Rix
Power Plant I expect this building the first
one to take $100,000 dollars.
Phase two will require an additional infusion of capitol, seamlessly overlap phase one and will integrate marketing and electric power sales. This may take longer to ramp-up revenue flow from sales while expanding the assembly facility and acquiring trained staff.
In Phase two that prototype and its original shop
morph into a reproducible, [ saleable ?] product and the
original shop becomes a first assembly, testing,
packing plant. Advertising is published, orders and
deposits on delivery taken. Terms; half down
payment, up front, the balance upon delivery -
maybe.
Consider the revenue streams
generated from two quite different business models;
1. Electric power sales.
2. Make and sell: make x units, sell x units for 2x
(or so) dollars plus the cost to set up a factory
and launch enough sales to cover the fixed costs.
Need 'intellectual property protection since
anything can be reverse engineered and copied.
Phase three will be characterized by positive cash flow as the business stands strongly and grows.
During this time I test the subsequent invention -
The Dobbs Device.
|