 Good evening everybody. Welcome to the 2023 Incubator Review of Shoe and Comedy Final Pitch. Tonight we'll showcase four students' house that has worked the entire school year to ideate, create craft, reiterate, validate, visit any kind of eat that I can come up with. It is a startup. It is an experience unlike anything else that they experience in school and tonight is the culmination of their hard work. The Incubator Review experience is broken into eight units in two phases. The first phase, the top row, is the developing of an idea and the developing of a business model around that idea. Students evolve in the entrepreneurs by writing a problem to solve and then creating their first version of what they believe that problem can solve. Then they begin a considerable amount of time in learning about the party audience and the validating their assumptions to primary and secondary market research. In the second half of the year, the validation continues but we move more towards the minimum viable product which is a low-cost version of their experiment that illustrates the validity of their model. It will further validate if their initial assumptions were correct while letting them also explore the marketing tactics for acquiring early adopters and also acquiring a customer base. During these units, they will also focus on business finance and the legal aspects of owning and operating their business. It's a pretty big undertaking that I myself have a hard time doing by myself and I couldn't certainly not do it alone. Business professionals from throughout Wisconsin volunteer their time as coaches, mentors and to surround in the sounding hordes throughout the year. In my opinion, I believe Incubator is the perfect partnership between community and classroom. Tonight's host for final pitch is Mei Zhang. Mei and her family have recently opened Best Tea, which is a boba tea cafe in Chicago, Oregon. She is the ideal host for us as she has just recently experienced the startup process and has strong connections to South High as well as both an alumnus and a parent of current Grandways. So let me please welcome Mei Zhang. My name is Mei Zhang. My family and I just recently opened Best Tea, which is a boba tea cafe in Chicago, Oregon. Some of you guys may know what it is. A boba tea is originated in Taiwan and it's trending right now due to a lot of social media and everybody's really into it due to their aesthetics. On Festival Best Tea, and Best Tea was inspired by Chow, a boba tea in Oklahoma. My family, we love to try a boba tea everywhere we go. So we decided that we were going to start selling boba tea. But this Best Tea came out in 2020 and it was known as Mei's boba tea shop. So we kind of did, it was pandemic, so we had curbside takeout at our house and it got pretty popular. Mei Zhang, which is my sister-in-law, she is a mastermind behind the business. We also crafted every drink on the menu. And all Best Tea employees are trending numbers. So when we first started Best Tea, we experienced a few setbacks. We didn't know whether we were going to go to the food shop or if we were going to go to the national building. We didn't have some setbacks but we were getting those. So it's the comeback that matters. And definitely, it is very important and we recommend the key to success. And working is so important. We need to keep popular due to the world of health. Starting, like I said, from this pandemic in 2020 to curbside takeout. Not only when we were both and when we came to change our main to Best Tea, everybody knew where we were and that they were just, you know, sharing the word. We realized that making the current audience, the social media platforms is also really, really important. Customers come in and say, hey, we started to take tags. And, you know, we want to try it out. So that helped a lot. And attracting new customers to promoting social closures in this country is also very important. I am going to talk about the procedures for the hotbed share. Of course, with each service, we give up to 12 minutes to finish your idea. After each finish, the meeting board board will have five minutes to ask questions. Only four members can ask questions. Once all the pictures have been given, the board will be convened and determined. Thank you to your EDU winners. Now I'm going to choose the board for today. My name is Gerald, is the Vice President of International Business at Johnsonville. His responsibilities include coaching business teams in Canada, Mexico, Japan, Korea, and China. Before joining Johnsonville, he gained business experience working for Campbell's Sioux, General Mills, and Anheuser-Busch. And I also work really closely with the entire work of international business. Don Hammett, Don is an executive vice president, certified financial planner and squared advisory group, where he works with clients in areas of financial estate and investment planning. He is also a member of MSG's investment committee, which focuses on creating management strategies and portfolio management. In the community, he serves as a chair of Shibuyama County Economic Development Corporation, a board member of RCS and powers known for and the UW Shibuyama Foundation. Rick Lonson. Rick's already late. Oh, okay. But still had a chance to talk with him if it worked out for me. Okay, so I'll choose. Rick is a senior director of roles at Uncharted Learning, the company behind Incubator, EDU, where he works with schools and districts to expand entrepreneurial education across the country. Rick has spent his career in sales and marketing, leadership for writing businesses that serve schools. Most recently, he is a social studies publisher at ABC, Seattle, Iowa, and before that, with Encyclopedia Britannica. He lives in Chicago with his wife, two daughters, and his genius dog, Nick Joe. Mandy Chan. Mandy is principal attorney and boarder of the series Patent and Technology LLC. A boutique law firm specializing in the area of patent and intellectual property, law, and related transactional matters. Ms. Chan has practiced in space in Sheboygan County while serving clients throughout the country and international. Her curriculum and TA includes studies in the field of biology, forestry, and law lecturers in these roles. Ms. Chan grew up in Southern California, traveled and lived in Eastern and Southern parts of the U.S. and has since settled in Wisconsin, where she raises her family and her business. So let's hear some business ditches. Littleforest.ai is providing tools to help users reach their maximum potential. Good afternoon, everyone. My name is Tyler, and I'm Robert, and we are Littleforest.ai. So imagine after a long day of work, you finally get home, and there's a huge stack of dishes and schoolwork to do since you're a part-time student. But instead of doing this work, you revert to sitting on the couch, opening up Facebook, and you begin scrolling for hours. You have just fallen into the trap. You find it difficult to manage your time. And you can probably relate to this yourself. More than 84% of people struggle with the same problem. Me personally, I remember my freshman year I used to sit at my desk late at night every night doing AP world work. But in fact, what I was actually doing is switching through a little bit of schoolwork, social media, and a lot of games. And in the end, I ended up wasting huge voids of time, which cost me my sleep and my contentment. For me, that's a very similar story. My freshman year, I fell into that trap. Weeks of schoolwork piled up, and as soon as I tried to confront it, I fell right back into my old habits. I know, if I had our solution, that those two years of that chaos would have been solved. So what is our solution? Our solution is a gamified habit trap now. Why? Because it's convenient, it's effective, and it's fun. We separated our solution into three different parts. On the top is your little forest, where you put all your progress, and you can share your progress with your friends. In the middle of part of your habits and your tasks section, this is where you're in the currency to build your little forest. In your pending section, are stuff like your calendar tasks. You say you have a bite in two weeks out, and you need to bring the right gift. So you can put that in that, you can put in that reminder, and it'll keep it for you. In our solution is also an AI feature, which acts as an all-purpose mentor. We are competing against other habit and gamified habit tracking apps, but our three biggest specific competitors are Habitica, HabitForest, and ForestApp, which all three have seen a great success in. Habitica is another gamified habit tracking app that has one million downloads, and their strongest feature is their customization and their RPG game style that they walk their users through. However, it's evident through their one-star reviews that it comes at the expense of complexity. Secondly, we have ForestApp with 10 million downloads. ForestApp is extremely similar to us in our reward system structure, but the thing that differentiates us is they use a completely different time management tool than we do. What they opt for is productive study sessions in which users can roll virtual trees on their garden, and what we do is a long-term habit tracking app. And lastly, we have HabitForest. HabitForest is the most competitive tool of all because they are both similar to us in format and functionality, so we've made it clear that we're going to be better than them because we emphasize our differences. That sounds like a tough competition, so what makes us different? We separated that into four distinct categories. Our simplicity, our gamification, our AI, and the ability to connect with friends. Simplicity is key. We reviewed our competitors' reviews, and we found that the complexity of their apps are not what people want. We strive for simplicity and convenience. Our gamification is engaging for our people. Our research has shown that students who have a gamified routine are more motivated, they have better academic performance, and it's more engaging. AI is a new technological tool, and we plan to use the power of AI and incorporate it into our app so as to give our customers and our users the best experience. And lastly, connecting with friends. Our interviews have shown that connecting with your friends makes it more enjoyable and sharing your progress gives a sense of connection. We know that you haven't been able to connect with friends, but who are we targeting? So as we were targeting, assuming that they have access to cell phones, we are targeting high school and college students aged 15 and 25 that struggle with time management. Why? Because they needed the most, and this age demographic is best suited for new technologies, and especially AI. And that brings up the question, how many of these people are we going to be addressing? Our total address in the market is huge, and it sits at 140 million people that are under the age of 40, residing in the United States, and have access to a cell phone or computer. To know our TAM revenue sits at 3.4 billion dollars, and our normal real estate market is our SAM, which sits at 6.1 million people and 147 million dollars. This was further derived from our SAM, and it includes the personal development market and takes into account the 13% of people that can manage their time well already. And now for our MVP. Our MVP was itself a Google site presentation that people would walk through in order to understand our app. At first, we had a website that people would go on to, and they would click a placeholder buy button to show their support. We strive to get 64% of our viewers to click on that placeholder buy button. But after revision, we decided that Instagram was the best way to go. So we merged all our stuff there, and planned to get people to click on a new metric, on a new MVP, which was our mailing list, that they'd go through on our posts with various call to actions. Our new metric was 90 people total to sign up, and of that we had 23 total. So what went wrong with our MVP? We turned inconsistent posts with call to actions in not the right place and the posts themselves that weren't interesting into vibrant, more regular posts that got people's attention, vibrant. Now let's get into our financials. Regarding our years one to three net profits and losses, at year one we're going to be at about a 49,000 net loss and this is primarily composed of start-up costs and takes into account that we won't have a lot of users now. Year two is our catch-up year and we'll be at a net loss of $5,400 and in year three we'll net profit of $88,000. Our revenue streams are divided up into five different categories. Our in-app purchases are of the currency that I talked about before. Our ads are $800 worth a year and we plan to keep them off to the side so as to not disrupt the experience. That in-app removal is projected to get 30% of our users to pay for the $199 add-on. Our AI subscription, priced at 99 cents, is predicted to get 35% of our users to pay for that. And lastly is donations which may sound odd but we plan to do second, we plan to have a secondary mission that supports trees that we'll talk about later Our expenses are divided into three different categories. Our start-ups, our SG&A and our regretting version. Our start-up is at $53,000 and has been consistent in app development which is $45,000 of that which we tip from various studies and pick the best one. Our SG&A is $34,000 and that consists of keeping our app relevant and making sure that there are no bugs. And last is another pretty new question which we took from half of our start-up process. And now here's our plan to net profit by year three. In year one we are sharp and focused on getting our app and website developed and out there and this is exactly what we're going to be marketing later on. It's exactly on the app store because our research points to it. In year two we're going to branch out to the other social media making sure to utilize our shorts method which has been proven to gain new viewers we're also going to reach out to social media influencers and affiliate marketing services. And in year three we should have a structured app going at this point so it is now time to start formulating specialized teams like a specialized coding team or marketing team. And alongside this we plan on partnering with other self-improving groups. So what does the future of our company look like? Well after we finish our actual app the goal is to create the best possible version this app can be. The dream. Achieving the dream of LittleForrest.ai means that we have successfully created an easy to use, convenient app that has completely gamified people's habits, tasks and reminders so that they can execute what their time is they wish. Motivated to keep going as they grow as individuals with their friends, with their digital forests and with the environment around them which gets into our secondary mission. There is a reason why me and Corbin chose our reward system to be a LittleForrest at Colovate and that's because environmental issues are very near and dear to both of us. And so in the future we plan to reallocate funds to broken habitats and to fix the environments around the world. We're asking for $2,000 to continue app development with our coder, our head coder Azuz back there. We're also asking for that to get laptops to get us head started to secure our domain name and using the rest of the funds to get our app out there. Thank you for your time. Do you have any questions? I really kind of like how we started that and I might have a small suggestion to connect two pieces of what you have but I actually passed part of the other parts of my questions have to do with financials. Maybe I should start with that. You discussed the cost of this project being about $53,000 in an app loan that I think was like a few pages prior to this but I don't remember. I think you were assuming something so quickly through it but did you have in there a cost that's submitted for annual long-term maintenance? Because I suspect that this is going to continue to evolve and you're probably going to continue to tweak it and improve on it. Yes, in our SG&A we have allocate $18,000 to make sure that our app is relevant. It's bug-free. Okay. Yeah. And then also probably just to continue to evolve in terms of giving it features that feed into the market and so I guess. I mean we took $9,000 of that to dedicate to making sure of that. I like the fact that your trans... I guess the word is translating. I like the fact that you're utilizing people's efforts and then contributing it to something tantal, growing trees and I wonder if maybe some of the users they're being reported virtually but do you have any thoughts of maybe having their work count towards your financial contributions? So that way they also see a tangible effect of what their own product to be has more of a global effect that way too? Yeah. So the tree growing thing, our secondary mission is more of a future thing but we have thought about that a little bit. If you're familiar with the app route for Epoja it's like for every number of searches they will plant the tree. We want to do something similar with that. We probably won't have the system set up until we have a good app going and running and this will be when all the in-app ads are gone because we want to remove those asap because we need revenue to be gone. And when users are able to pick which tree they wish to plant under virtual lines there will be a total count of how many trees they've actually planted in the future as well as the entirety of the app. So maybe 6 million trees throughout the entire app and they've contributed 14? Yeah. Great. Thanks guys. Great presentation. Clearly you did a lot of work. I have a couple of questions. The first question is on the AI element. We didn't see that before. Can you say a little bit more about the AI element and what does that bring to the app and the value proposition? Yes. AI has events and opportunities where we have really powerful language models that have so much data sense that they search through and complete information and it's come to a point where you can include different businesses and app developments and so we're trying to include that so that if somebody has a question on how to fix a car and a certain thing about it they'll be able to ask the AI how can I fix the car in a certain way and they'll be given guidance Cool. And the second question is on your TAM and your SAM your SAM seem still very large. Can you just talk a little bit about what was your math to get from your TAM and your SAM? So I'll start with our TAM. We started with the entirety of the US population and we promoted it down to people under the age of 40 that had cell phones and we took into account the people that could manage their time already so they're not in the equation. Sorry, that last one was part of the SAM. The secondary refiner for our SAM was it took into account the personal development market which I believe is about 0.7 so that was the further driver of our SAM. So our TAM had about four metrics and our SAM had about two refining metrics. Nice job, guys. It's not easy getting out there so great job. A couple of questions on the numbers side of things. On the SG&A I didn't see any here maybe you mentioned it but employees how do you, especially as you scale this up and you mention it for any positions here and there but in that 34,000 how are you guys going to pay? In the first three years we don't kind of pay ourselves because we won't focus on development. Coming year three we'll incorporate that for our SG&A as a balance and it's just for those who want to pay. And that includes the development cost of the outage fund. Paces, works, or G? Yeah, so far. So the other question I had is on the marketing side going through the socials you mentioned that you were going to incorporate the socials in year two and not right off the bat explaining to me why you in year two use socials to your benefit even if you're just again kind of bootstrapping it. Well, we found that Instagram is like the best place to start for us just based on our target audience. So we want to hopefully be the big following there first while we work on the app on the side. I mean we could do a bunch of them we could do TikTok and Facebook and Instagram and Snapchat all at the same time but I think putting more marbles into where the biggest concentration of our target audience is would be more ideal in the beginning. We could see he's asking if we're going to start our social media year two. We're going to start in year one we're just going to branch out here to branch out to things like Snapchat and TikTok and Facebook. And last just on the pricey walk through that again so we were talking about $1.99 and then $1.99 just maybe briefly just recap that again. Yes, it was and for our A.I. subscription it's priced at $1.99 because as of right now A.I. is fairly cheap so we don't want to overpriced so that people aren't using it. Because we want to incorporate that as one of the main features but we also need to make a profit. And our ad removal that is priced at $1.99 and 30% of people will have a debt to get that but as soon as it's gone and evaporated my ads are evaporated well then we're going to transfer that to other sources of revenue. Thank you. Thank you. Great job guys. Our next theme is simply delicious baking them right filling the desire for treats for individuals with dietary restrictions. Hello, I'm Iglo. I'm Iglo. And we are two of the dishes This one starts with a friend of mine and his name is Solid. He is allergic to ants and florets for ants and florets. We went to Boone Harper who is our damage avoidant and he worked in it a lot drinking it and knowing that there was a lot of it. He had an allergic reaction in his dad where? Where? What's his action? His dad had to bring his evidence. He ended up okay but it ruined the rest of our plans for the day. Can I get a show of Hansen here about who has allergies or some of his allergies? If you guys look around there's plenty of people with hands up so we figured this was probably a popular problem. We interviewed work-oriented individuals asking if they had allergies and if it was competing for them and they said no which was probably what we saw that it was accessible and when it was it was out of the budget. Our solution is having some mobile bakery around Chewie County selling allergy friendly baked goods. We chose this solution because I personally love baking and I'm going to pursue it as a career so this is a pretty good solution for us today. This is a mockery of our mobile bakery which we will be selling and measuring our food. Our confederate ranges through bakeries, online retail sellers and food trucks. For our first confederate which is a bakery the price ranges from $3 to $28. Pick up and delivery with the listed allergy friendly. When you have to call if you make a special request you make it the item called gluten for a joint life better the price ranges from $5 to $29 which is sold in big brands such as Walmart but the portion size if very small it doesn't satisfy the visual for swinging sweets the price ranges from $1 to $7 which is pick up and delivery which is gluten and baby food for you and certain items for you such as cookies or cookies for filling donuts the price ranges from $2 to $22 which is pick up and catering pick up and catering and has no allergy friendly which is a bakery and food truck. We saw a bakery was stationary limited on allergy friendly options but we saw affordable items we saw food truck which was mobile but related to allergy friendly options but one either was the price was out of the budget we want to provide convenience and wellness to the person so our solution was becoming mobile having an allergy friendly option and also affordable items making it fresh this is our we are targeting customers that have 40,000 or higher possible kids because survey connected by TTC one out of four kids have allergies targeting also individuals who have four main allergies such as red gluten A and nut and more people for the U.S. for example we have 6 million people who will be connected with our revenue being 22 bills for our Sam for our Wisconsin it will be 1 million with our revenue being 4 bills and we have these revenue predictions by assuming that one person would buy every other day for 5 years our marketing plans for launch include face to face marketing we plan to go to ballroom parks for every one day and Wednesday for a mobile food truck event that happens each morning as well as driving out to churches farmers markets and festivals selling to the people getting our products out there we also plan to seal our products with stickers that have our logo and our Instagram tag on it as well as handing out business cards and just having a logo set up for that that also have our website and Instagram handles we also plan to use Instagram with paid ads because that is our main social media platform for NDP our home was to get 25 followers and up to 25 get 10% to be our website and we're to each level we decided to go through feeds and foggies and sell products we decided to sell and make our product we made 74 items and out of 74 we sold 62 the most popular items were carrot cake and brownies and we made $176 in revenue which we put right back into our NDP just so that we would have more product to make it sell and from this NDP we did learn that selling product to people getting out there and actually talking to them gets a lot more traffic towards our Instagram and our website we also learned what products we would sell more of we thought we would sell more cookies but we sold a lot more carrot cake and cookies were more of a blow and for the goal we did get 14 followers and up to 14 2% went to the website and stayed for 2 minutes you can see here that this is our cost of goods so for the cookies the cookies and brownies were fighting on making it for $1.07 selling it for $2 with a with a gross margin of 49% and then we plan on selling for the Everett making it for $1.81 and selling it for $3.50 with a gross margin of 48% we do plan on selling coffee as well because we're going to church in the morning which is a 20 ounce coffee and the cost of goods that are in 2 free sugar packets and 2 free framers which comes to 24 sets to make it and we're going to be selling it for $4.75 which brings the gross margin to 99% and then for the carrot cake our most popular item we would be making it at $2.78 selling it at $6 with a gross margin of 49% and so for the first year we plan on we project to so 23,000 units and then between year 1 and year 2 there would be a 150% birth rate bringing your 2 units sales to $58,000 then between year 2 and year 3 would be a 7% birth rate bringing your 3 units to $99,000 at their birth rates within their first years and these are the numbers that have that shop with theirs we plan on meeting these birth rates from year 1 and year 2 to 150% by expanding to other counties and other cities year 1 to 2000 just around the state and then for the 70% birth rate between year 2 and year 3 we plan on expanding with catering and orders this is our 3 year summary for the profit for year 1 that is really the opportunity to be losing money and we losing $25,000 year 2 we would have an income of $33,000 and then for year 3 we have an income of $98,000 within the first few years if we don't meet these numbers we will end up selling because if it doesn't meet the numbers then we will sell however if we don't meet the numbers then we will continue to move on with this business and expand past ourselves this is our SG&A in our SG&A the largest cost that you can see here is salaries it's at $70,000 which incorporates paying 2 bakers for the whole year which is $35,000 each we have that number by looking at the bakers and then the other prices like administrative costs licensing, food licensing permits, selling permits insurance anything you might have to cover and then our initial work not initial our working costs moving through 3 years of just making and selling products and then making the stickers and just driving out around these are our start-up costs the highest cost you can see here is our food truck we could be buying it for $70,000 and then spending $10,000 to renovate and buy any equipment we might need for it the second highest is again the salaries just getting the end for the first year for the after-seller the second highest cost is again marketing because that's a very important part of getting a business out into the public and just going out there and selling the next highest is the administrative cost again just buying the rights to our logo and then licensing, food permits insurance to make sure that we're all covered in those areas and then the start of the inventory just for the first 6 months would be just over $1,000 to make that inventory and we were asking for $2,000 to cover the start of inventory so we can immediately start making and selling the products Any questions? Thanks for that presentation very overall I really love it I'm a long way from that too I have some thoughts I guess you listed your competitors and it's kind of a local production so it looks like at least your current vision for the next few years is more of a local growth with the potential for in the brands regionally probably but you know I think that with this type of product oftentimes the preparatory aspect of it is just in the taste and you know it's hard to I think it's hard to compete sometimes at that level and I've noticed in this realm especially in foods I'm sure of all you can speak to a lot of it is probably in relationships and I wonder if you have any plans to leverage that because I've seen like other types of big foods tech products that will leverage it through like institutions like you mentioned in terms of moving a higher production into those areas where you might sell wholesale or at discount rates in larger bunches because you are affordable so you do have the ability to tap into that demand more and if so then I didn't see if there may be also commercial kitchen or something like that that you would need for that that question often comes up whenever we do our business like are we going to use commercial kitchen and then just deliver out right now we're starting a future because I love just like making the food and giving it out to people and like mass producing it and it's something I'm quite looking forward to but I know that eventually it gets big enough that will have to happen so yes we would get a commercial kitchen and then just like a delivery van bring out orders to work so yeah that is on me yes great thank you for doing that and every time I see your pitch I want to get into coffee business what is neat when you did your MVP and I was a really great MVP by the way what was your allergen that you were selling for with all four items so we were wound free we wound free dairy free and egg free so all four of you all four that's great the second question is have you done the math between your 23,000 units in year one and how many servings that would be per hour, per window, per stop we did that I think you may want to check that that could be that is great, excellent and great progress over the last couple of months yeah I totally agree nicely done I'm just going to piggyback on this the TED bit both of you guys are employees I love that you're built in salaries for yourself a lot of times that doesn't happen so if you're built in I'm assuming the baking pieces are a fairly time consuming process I'm just curious how you guys plan to bake and operate the food truck you know be out where you're actually selling the product that you will eat eventually if I were somebody to do that how would you do that initially so on and so forth so initially what we have like regular bakeries there are bakers coming at like five or four or five in the morning get as much product as they're selling at day and just sell it when they're out there out we will do that at the very beginning until like for the first year that's what we will do and then for the second year we have calculated in our financial model paying another person like a third person coming in and then again fourth we have looked into expanding that way and that is probably what we do depending on how quickly it grows we would get a commercial kitchen probably almost like in accordance with how much then maybe a little bit of follow up to Mandy's question but kind of a unique product and I'm wondering with the whole foods of the world and it's a tough industry as Bob was going to be placement on shelves and things like that but being that this is unique have you thought about or talked amongst yourselves about store placements or licensing agreements where you could get this out to the masses a little bit and scale it up a little bit I don't think that we've looked into that not like mass producing it at all we just want the like the home cooked bakery kind of style thank you wow look at that thank you great job great job guys next year we'll be taking a pitch right here I'm Rick Lumsden I'm from Uncharted Learning the makers of Incubator PDU Greg asked me to just say a few words about our program during this short break so I have a question for the adults in this room how many of you had a class like this in high school no hands go up that's probably the feedback we get more often than not from adults who see what students can do they say wow I wish I had a class like this in high school and that's actually the kind of origin of our company of our non-profit two dads in a local community outside Chicago were frustrated with what they saw going on in business education and thought what would happen if we gave students a more authentic experience and tonight right while this is going on here there's a pitch going on in that local high school for the 10th time we've been around 10 years we're in 24 states we just picked up another state recently and growing we have programs for 5th grade through high school but with all of our programs the key thing is being authentic giving students a real experience with entrepreneurship and such an important part of that is all of you being here the mentors, the coaches, the community support that's what really brings it to life so I want to thank all of you for supporting the program here in Chicago thank you the next group is called Keep Saves helping drivers avoid stress and loss that comes with all of your ideas hello my name is Jacob White and I am the founder of Keep Saves so Keep Saves was started with the goal of solving the problem of car breakings this may seem like a really insignificant and random number to you guys but in fact a lot more relevant than you'd realize this is the number of cars in the parking lot as we speak that are left unlocked and unguarded from potential fees originally to solve this problem I wanted to create a fully customizable way to take the changes that are put up for whatever you wanted I realized this was going to be very expensive for both the producers and the consumers so I pivoted and wanted to toggle what we picked on and off the research and validation I found this county in True County, County, Georgia that are more than 90% of their car breakings were simply because the victims left their doors unlocked although people I personally interviewed 63% prevented their breakings by simply locking their doors which is why I created the lock pot it looks something like the product on the left you plug in your OB24 which is a small port located under your steering wheel of your car and it will connect to your car or your phone via bluetooth it will lock the doors for you as you walk away it's like you don't forget to lock your door anymore it will connect to the app that was on the right it's a little closer look you see the first two devices connected the one on the left, their car is locked and the one on the right, the car is unlocked you click that little gear, you can turn on your automatic lock or lock if you don't want to keep locking on you hello judges and spectators this is the lock pot and to install it, first you walk over to your car open your door and plug it into the OB24 once it's in take your phone, follow the connection procedures that you walk through on the app and walk away from the car as you can see on the app, it is locked the car is locked behind me and you are all set thank you and back to the pitch but I put this product in front of other people to ask them some questions to turn on the bottom I asked how much safety it would make them feel with this product in their car for being much safer and one being not safe at all 58% reported this product would make them feel much safer 25% said it would still make them feel safer but not completely safe only 16% reported that this product would not make them feel safer in the top right in the chart I asked about a subscription based feature that I plan to have remote lock and unlock so you can lock your car from anywhere be it your phone 70.8% reported they would be interested in paying and having this feature our market our total address of our market is 289.5 million that is the estimated number of cars that are on the road in the United States our serviceable addressable market goes down to 231.6 million which is the estimated number of cars that are 1996 and newer which the energies that they have will be due for in their car as that's when they started managing them to be in all vehicles our competition, our two main competition our major car brand which I chose Chevy to represent as the biggest in the United States and this product by base technology that you can see on the right the product by base technology for $39.99 it does have automatic lock and unlock however it does not have a remote lock and unlock feature and you also have to far away into your car as opposed to plugging in connecting to a report to Chevy has a month or monthly subscription of $14.99 compared to the $39.99 help run they do not have an automatic lock and unlock feature however they do have a remote lock and unlock feature the cost of the lock and lock contains these five pieces the first piece is the case that plugged in before this has the 16 pins and is for all pieces we sort to work with the car the second part is a step down power supply which takes 12 volts for the car battery converts it to 5 volts that the motherboard can use without frying the third part is done with the motherboard this has the Bluetooth technology to connect to your phone along with pulling all the other pieces what to do and when to do it the fourth part are the GPS chips the GPS tracking them later on as they know there's an inscription that that way you can find your car can fit every part of your car vessel and you can track it down and locate it and our fifth piece is packaging this will include boxes and instructions and that type of thing for tripping our revenue model has two main revenue streams our transaction is revenue we're going to sell it for $39.99 our first review has been $355 sale giving us $14,196 and our second year we estimated 69% growth rate at estimating 50 months or 600 for the year giving us $23,992 and our third year we expected a 300% growth rate or 2400 a year in the year giving us $95,968 our subscription based review we used our solution interviews and estimated 70% of people would buy the subscription and that is where we got those numbers wrong now to get to the growth margins that I talked about in the year when we plan a market mainly on social media but also in person in year two we will continue marketing along with trying to get our product into local stores and online stores like Amazon in year three we will continue marketing along with trying to get the big box stores like Walmart, AutoZone and stores like that it's not a product to any larger audience our SG&A, our yearly cost consists of these four parts our accounting for managing our money is $2,500 and our marketing we plan to allocate $18,000 a year to get our product to other people along with a salary which will be 10% of our revenue that will be paid to people that are working on the project our net income in year one will be $4,300 in year two it will be $18,754 in year three $8,700 and $1,900 our starting cost consists of these five our patents we plan to have a functionality to protect the coding and the processing which the law provides our trademarks, we need two trademarks one for our logo and one for our name our product app development is actually $0 a member of our team, my father has actually been product or produced or developing the app and product for free our marketing plan to allocate $500 prior to launch the market and get our product out there and our serve inventory of 100.7 units $1.95 now I just want to take a moment to see how they're working on this product me on the left, my mentor Justin in the middle and my dad Larry on the right so now I want to assemble the product we do have a very good product here but I want to start off with a video kind of explaining it so you can see there's a box plug it in on the right side once it's plugged in you go to the app, you hit install it's installed in the box you get installed you wave your pop up there, you get the drop down and you get connected and then you get to name it for the sake of the demo, I named it demo and then you scroll down, you pick the distance you want and you get continue then you get finished wait for it to load and then you will see the product will pop up right there you can see on the phone you can see I've got a little screen right there it says locked, power secure and when I make it back you can see on the phone the product is locked so now I want to take a moment to do this in person so we'll start right here we'll plug this in make sure it's a little red light on though and we'll open the app and we can actually do it the new world three lines up there no, the new world three lines it's installed it's installed as you can see, it's installed put kind of a little drop down scroll down and connect name it wherever you want pick the distance you can keep it at the default and you get and you get finished and then you can see the product there and then you actually want to walk away with the phone you will see the lock on the screen and for you guys to see here it will say lock around this little place you can't just want to start walking alright so that is the word prototype this is actually the second version of our prototype it's not currently working this is a better idea of what it will look like compared to this loose wire so you guys aren't the only people who have seen this I put this in front of a lot of people so you guys haven't got people who are asking if I need investors saying it's an awesome idea so I'm going to take their money people are very excited about the product saying it is a market disruption very cool concept people are just really excited so that is why I'm asking for $1,000 so I can purchase my certain it's already 127 units and start selling to republicans as soon as I can thank you are there any questions it's like the science here that I needed this year this is really tech focus and so you talk about patents I think that was really wise of you to identify that what I run into situations like this is where you have proprietary information both in terms of the technology and how it works functionally as well as in the software that's written in copyright and some questions I have, that boils down to is it protectable in either realms and if it's not then you may be subject to basically a watershed of competitors from anywhere and so in either airlines I guess situations you're going to be faced with some form of enforcement over time and I guess in terms of vetting out the enforceability that might actually affect your business model so I think here in this presentation you're presuming that it's protectable in my head I'm just thinking like with the software that was written are you using open source technology there is it copyright or particular in that realm and in patents can you walk it down or other technology using that might require you to license as well and is this patented too so I think that at least in my head as someone who would be potentially investing I want to know where the technology stands in that way and so I guess that's my question to you is have you considered that and how it's going to affect your business model if it slices one way or the other yeah so I have to say that it is patented technology that the actual voting itself can't copy it but it is patented well great can you talk a little bit about your supply chain so it sounds like a lot of manufacturing it sounds like it could be a long time to manufacture it into your distribution network can you talk a little bit about where you plan to have these groups so right now I'm planning on actually just ordering a part of it together at home later down the line I do want to eventually have them made back in summer house and then have them shipped over but for now I do plan to put them together at home and then from your sales channel the plan was to start online at first we had social media and then we went to yeah so we'd be selling them on our website and shipping them to the customer and reaching out to our customers via social media and down the line and track it between person to person when we go to the store and line up with the person nice job videos like that one so we can have footage so the subscription model here is in order to open and close your door remote what traction do you think you're going to get with that and the only reason I ask is do I have the floors it's not a plug for a floor it has an app that I can open start by me to go open floors doors before we're going to have that that's not the total market but you can just pop to that a little bit are you going to be obsolete over time because of the technology of the car manufacturers yeah there still are a lot of cars that don't have that a lot of them are free and by no law the big brands like even if each of them take away they can start paying for it after a year or two so we are providing more of a cheaper option for some of the new cars and and in my mind because the technology goes to helping somebody use this or use it in a negative way what protections would be part of the software to make sure that it doesn't get hacked and that somebody can get into your car or especially with the GPS feature that it can be followed or trashed yeah so once you're having connected to your phone or your app it won't connect any other app or any other phone or device so it will stop people from just going and connecting to it on their own device and the GPS will only pay to our servers and so they can then pay to own your device and last and again we see this quite often each year when we look at the SGA expenses you mentioned the company $2,500 being a recovery company that probably may be adjusted or that some of those expenses like that's becoming marketing just website development it's going to be far more unless you can find somebody to do that for free or for a lower cost but those just may be a fantastic idea here just be looking at those models and be helpful so I'm curious to know more about the market need and market awareness we mentioned a one share office some pretty good statistics about unlocked hardware but how do you get the market to see that as a company? I have a little focus heavily on the unlocked cars and car break-ins and the large numbers of car break-ins but I think the market is obviously there so I think it's very reachable you have a sense of how big the market is for other aftermarket products that people might use to protect your car no I'm not sure thank you very much next group is born beauty provided to skin-safe cosmetic products and vulnerable pets like my unit, other teenage girls when I first started high school I became more interested with my makeup and skin care with this I invested a lot of time money and research into finding out what products were for me and what fell but a lot of people all over don't do this and unfortunately are not the best results for me, an acne buyer can occur when someone who uses a product which simply doesn't work for them I've seen this happen first hand with several friends and family almost overnight having seen their skin turned to a disaster because of product break-use there are two reasons why I decided to do my research and not go with any re-insist one, because I didn't want my skin to negatively react to a product for the first time and two, because I didn't have the kind of money to study on a product that I wanted to use in the first period of time my name is Janssen Yoh and the owner and founder of One Beauty a skin care-based cosmetic company whose products use all natural ingredients that are simply the same so essentially the problem that I'm trying to solve here is that with skin complications it's difficult to find products that are also affordable when I started my journey I had connected some columnaries and I found three common concerns the first one being that people were concerned that their skin was going to break out after using a product the second one being that morning in safety routines doing makeup would take a lot of time and the last one being that cosmetic products today were too inexpensive for example, a simple eyeshadow can cost about over $50 which brings me to my new key I would like to promote that my products would be multi-use which means that they would function as one and just one thing which would cut me's makeup, morning, skincare which means I have then for their skin care-based I would say that skin care-based means that it would work well or it would stand travel work against it but in normal aspects products do and lastly that they're affordable because there's nothing harder than finding a product that you like and then it costs $50 after consulting with Dr. Mark Knobbel M.D. who was dermatologist for over 40 years I addressed my problems and concerns with him and he reviewed my ingredients and found that these would be beneficial for the skin he also suddenly made an attention market a woman here states that I would like to direct need for these kinds of products for teenagers which is why my target market would consist of teenagers ages 12 to 18 who have sensitive skin and use makeup and skincare I would like to narrow my market a little more by saying that I think my products would be best for those who are good to make up or have a personal experience my first product that I'm currently loving I'm also used to which would be a blush and lip combo priced at $13 in my first year of sales assuming that I make over 900 products in sales I would make a revenue of $12,000 with a 3.8% of the rate by my third year I would be making $13,000 in revenue this is subject to change however because I plan on creating and adding products in my life a lip oil price at $9 and a hygiene stick price at $15 in my first year of selling these new products my total revenue would be at $34,000 my target market for target operation would consist of women in the U.S ages 12 to 18 who use makeup and skincare this would be just under $4,000 in fuel and would be of those who have sensitive skin $1,400,000 after doing some MVP experimentation I quickly realized that it was going to be a lot harder to make cause than I thought than I thought it would be one of the biggest roadblocks that I experienced was mixing the ingredients together and finding that water-based ingredients and oil-based ingredients don't mix well to improve from this I would like to save more time to assure that my products are safe and that they work perfectly just the way that I would like them to the cost of my soul for my product that I am currently working on would be $0.89 and I'll receive the $893.15% from the market and although this may seem like a large amount of those margins in the cosmetic industry 80 to 90% of those margins are very common my SG&A would my start cost would be at $2,800 and although that makes me very low I would have to worry about things like location of the objects and utilities because I kind of may be my life's at home then my SG&A would just be over $600 or $6,000 after doing some competitor analysis I have two competitors that I find very similar to my brand that I am the first one being all of you, the local brand here in Chicago again, that the most of their products are healing, versatile and not comfortable their product that is most similar to mine would be their vintage asset however I would like to point out that their products are more skincare-based and cosmetic-based then I have Axiology a brand here in the US that promotes that their animal courtesy breed will be begin and clean the product that they have that is most similar to mine would be their green one form but their products are more cosmetic-based than future-based which is why I would like to point out that skincare-based cosmetics industry in itself is a relatively untouched industry things that you find in this industry would be scented motions and tinted chapsticks when it's built in but it's a very small category of products that I can use my marketing would consist mainly of around social media things like Instagram ads and paid promotions are what a lot of my marketing would be on and I would run campaigns like this for many times in future lives such as beginning of the new year being of the summer being of the school year and Christmas time but aside from just social media I would like to point out that I plan on attending two degree conferences for a year and I would get more physical things like business cards and stickers and also be handing out free samples at those three conferences to get something physical and possible for customers future plans for my business were to implement a beautiful program to promote sustainability a real program is essentially a program for a customer to send back and refill it and send back to them for discounted price then to become 100% sustainable I would hope that one day my brand would become 100% sustainable meaning that we would use no plastic and all of our marketing would be either feasible or sustainable and lastly inclusive as a person of color I would like to see more brands today be more inclusive with everybody so that everyone can be a beautiful brand and exit plan would be to sell my product as fees to a strategic buyer after three years of selling my product with my very best assistant and I ask for the $1,000 today for research and development and personal purposes thank you I would hope any suggestions to answer thank you for your participation Ms. Morgan I appreciate your identification with the members that know the MVP of your product I agree that the multi-use asset within the same year is the way to go I have two teenagers young girls so totally in that world right now and I understand how this is relevant you speak about your SGA and you're going to start off a lot of this at the beginning stage and I think in this world what I've seen is that you're either going to be sort of on the smaller end of the smaller scale of production and entry into the market or else you're too big there's not much in the middle especially if you have a network you're going into like social media there's going to be an increase in demand so I guess my question is more to do with your vision because there's going to be a certain time frame that you probably want to aim to go from one you know scale to another and what's your vision for scaling up and where do you want it to be you know in terms of over a course of maybe three to five year time frame yeah so by my five year time I was hoping to be selling all this at least in the U.S. and since everything I would be selling online I'd be pretty casual and I guess that's my answer to your question is I hope that I get to hear from you sometimes about this vision this is great I love that you clearly connected your passion your personal passion to your business your own goal question about production your value chain so my understanding is you haven't made a product do you have any other recipe have you made a full viable product yet not yet because I would like to test how safe my product would be and the difficulties of creating a product would differ from what I expected yeah so that would be one of my questions so with 900 units how long does making 900 units take at home is that a big batch do you just help paint the picture on how you make the product yeah so my first couple months of selling I would be making a new sauce per month so rather than making a big batch it would be a lot of small batches of being made not for Bob's question on the MVP so you weren't able to make anything or create a product but what feedback did you get from an MVP standpoint down to this product so I personally was experiencing and was making a lot of pledges so I wasn't successful in myself and I think that the kind of feedback that I could be making a lot of people work them out but I didn't want to put their safety in a better direction because of my knowledge and that kind of leads me to my next I guess more of a question slash comment this is a very very busy marketplace cosmetics there's reasons there's aisles not that I understand it but there's reasons there are so breaking into that marketplace so I didn't see necessarily that up there from a marketing cost standpoint and then the next piece is the testing expense with the cosmetics I've never actually ever run this in this space with bone and just the testing and the compliance that were along with that and I didn't see that up there as well maybe something you want to explore and build on the financial piece of that really nice presentation I really enjoyed that I was especially glad to see how many interviews you did up there 50 interviews is very good I'm curious you've got a long-term plan on adding to the product line the target market for this at all but it seems to me that they gained some strong buy-in on that first product that is more important than getting to the next product after that I'm curious how you go about getting that so at first I started with my end with those three products so then I realized that it would definitely be more helpful just to start my first product which is why I added them on to my future plans and they are products that I have on the media store and websites that have paid off forward thank you before we go to announce the winners we just have one last final round applause for the start it's not easy they have 36 weeks to give or take to try to get something to a point where they can come here and pitch and it takes a lot of work and really one of the things that makes incubators so unique is that partnership between the business community and the school that happens and it all really starts with our coaches who are in the classroom with me throughout the entire school year our coaches dedicate 3 sometimes 4 days of coming in and working on things like target markets and their ability to story tell their financials, websites development you name it really made us start up get to where it needs to get to and establishing that part of their start up is so incredibly important and I can't say that I can speak from a place of knowledge on every single area as well as they do it really initiates the message that we are entrepreneurs we are not in a classroom which is the hardest thing I think in the beginning for being a student we are building businesses and if we start thinking like business owners then you will want to do your homework outside of class which isn't always necessarily easy for high school students but our coaches they make themselves available to students via phone, email video calls, conferencing I saw coaches popping in to answer emails have one-on-one sessions basically up until yesterday actually I saw some work even happening this morning with some of the coaches that are here earlier this year so from bottom of my heart thank you coaches for getting us to where we need to with the content our mentors enhanced that incubator experience by taking on a project with individual with those individual teams the mentors job when they step in is to become that third person fourth person IT and really get their hands dirty so helping students understand what it takes the boot truck to build it out to answer questions to find people that they wouldn't be able to find other ones so for example having an interview and having an opportunity to meet with a dermatologist these are things I would not have the kind of contacts or resources to be able to do but the mentors step up and say I'm willing to commit to 1-2 sometimes even towards the back end here 3-4 hours a week where I can really help the students advance those business ideas and realistically a lot of our mentors are business owners where their time is money and they do it free of charge and they really do help the students get the resources that they need but then also keeping them accountable it's easy to get the senior items it's easy to you know say well I've got sports or I've got this going or I've got that going on and understanding the kind of capacity that it takes to be an entrepreneur that you have to be able to balance those things out and you can sacrifice all of those things for the business or maybe I should say sacrifice all of those things and have the business be secondary and finding a way to be able to keep it moving forward even as you manage your personal life and the things that you do outside of school the mentors really help with that so much because I can say over and over in the classroom but certainly they sometimes easy to hear from someone else and I really do think that what we saw here we were talking about how the pitches really came together since February when they did their M-U-P pitches a lot of that comes back to the work that the mentors have been doing the coaches have been doing work with them again with what they need to so thank you again to the mentors last and not least I do what I think I'm trying to thank my community champs the community champs are people that the students really don't know they don't really see them in the classroom necessarily unless they pop in but our community champs are the people that help me find the people as you saw this is a small army of individuals who have to help me every year help these students get to where they need to be I knew some of these people when I started doing this 40 years ago but I can tell you right now I didn't know most and where that came from is those conversations like hey who do you know that would be great for this who do you think would be a great content person for this as a coach who do you think would make an excellent mentor and to be honest with you in four years the community champs would knock it out of the park and every year we run into a situation where you know someone's professional life takes them in a path they get a promotion they've taken a position someone gets pregnant someone has a personal obligation that makes it that they have to step away from the incubator for a year or two the community champs come through so many times in public fill those voids and without them I don't know what I'm doing this summer trying to chase down these individuals so I want to say thank you to the community champs for making my life easier and putting together such an amazing roster of talent that helped work with the startups lastly you know thank you to Johnsonville obviously for hosting us they have been our lead role sponsor for the last three years this is not this is not a class and they try to stress that from day one we want to give these students an opportunity to take their dreams and make them a reality starting businesses aren't free you have to have those investments and you need to be able to and Johnsonville not only provides financial support but obviously has had us back in the last two years Bob and this team have been extremely gracious Katie spent the whole afternoon with me getting the room ready trying to get the tech working all those things May is here tonight as a host she works here as well as being an entrepreneur when it comes to the support we get from Johnsonville it's almost like we don't feel like we deserve an ensemble and we do really appreciate everything Johnsonville did for us this year lastly, before we get to the winners I do like to point this out this is me making my sales pitch if you saw tonight this was kind of a great experience and you're like yeah I would be okay I'd be willing to enter hey come see me I'd love to get to know you a little bit thanks for the upcoming fall year if in addition you saw something thankful business start-up standpoint and you are interested in possibly helping those students in some way shape or form please come see me as well I can help you make contact with those students and you can do so already because in the case of these four entrepreneurs all of this have said distinctly that their plan is to try to move forward through financial assistance whether it's a resource a business contact a mentorship so on and so forth I'm sure they would be more than happy to take any additional assistance you provide alright so let's get to what you wish you were all waiting for Shelley was trying to break in here so in the end it's time to discuss the winners so tonight we again really see the business community step up Adam from Carvaless was so pressing that he is going to make it that we do not award just one start with tonight for the investment dollars Carvaless will be providing financial assistance and start up investment money for a second team this is tough we had some real conversation in here just like when I did the grading the first question they asked me this morning yesterday afternoon or whatever it was the grades were, I was like who was first and I'm like there was three points between first place and fourth place they were super duper tight it's really going to come out with just how well you deliver how much you put in in this last 24 hours and it's no surprise that we ended up in the same boat really kind of asking out between all of us really trying to figure out exactly where the best suited for the investment dollars game like I said it's it's exciting to be able to say that tonight our winners of investment dollars are keep safe and simply delicious