LifeLight- Introduction& Business Proposal

In February, as a co-founder of the Life Light project, I recognized the pressing need for a durable and sustainable lighting solution during natural disasters. With a commitment to both the environment and society, our team developed a unique galvanic cell-powered flashlight that can be fueled by any type of liquid. Through our business model of "buy one give one," we aim to provide accessible light sources to those in need while generating profit by selling high-quality night lights online. With an emphasis on sustainability and social impact, we are confident that Life Light will make a meaningful difference in the lives of individuals and communities facing natural disasters.

I have attached our business proposal below.

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Life Light 

Business Proposal   

Table of Contents 

Business Idea

Introduction

Customer Analysis

Business Value Proposition 

SWOT Analysis

Competitor Analysis

Marketing

Simplified Financial Calculation for the Next 3 Years

Introduction of Your Team Members and Their Roles

Next Steps

Business Idea  

The most common natural disasters around the world are floods and storms, 45% and 36% accordingly. Due to climate change, the prevalence of natural disaster increases requires a solution to rescue lost people in rural areas to reduce casualties.  

During natural disasters, electricity in affected regions can be cut for indefinite periods of time leaving areas completely in the dark at night. The darkness can become a serious hinderance and may cause secondary damage to people from obstacles and can hinder the rescue process. 

This creates the need for a durable light source that can be used immediately, can be stored for a long time without any external power source, and can be pointed towards the sky to form a coded Morse code of “SOS” for rescue. 

Using knowledge from chemistry class, we’ve built a galvanic cell using basic materials such as PVC, copper, zinc, LED, reflection plate and joule thief to create a flashlight that uses liquid of any type as the power source. 

Introduction 

The company is a for-profit social enterprise that is environmentally and socially committed. As a social enterprise, not only do we provide solutions for social problems, enhancing the safety in local communities where there are frequent natural disasters, we seek to produce energy from environmentally friendly sources.  

To follow our environmentally sustainable mission, the company will sell DIY - night lights that contain the technology of a galvanic cell, allowing the night light to power with any type of liquid and without any external source of energy. The acrylic sphere on top can be painted according to the customers’ preference. 

Aiming for both profit and sustainable objectives, the company implements the “buy one give one” model for every night light sold: we donate an emergency flashlight that embraces the liquid-powered technology to provide an available light source in any situation. To generate profit, the night light will be of high quality and high price, sold online only and the product will be directly distributed from the manufacturer to reduce costs, the flashlight will be mainly performance-based, made from durable but affordable materials and implementing a basic structure. The estimated cost to produce 10 flashlights is $20.0, accordingly with behalf the price of the nightlight, an additional $5 will be added for the price of the flashlight and shipping. 

Dedicating efforts to providing high-quality night lights and functional flashlights, the company will be able to raise awareness about victims of natural disasters by publicly committing to help the individuals through this business model resulting in greater public understanding and creating a potential to support and address the issue. The theme of light will be emphasized, the night light, a source of light that helps overcome fear of the dark, and the flashlight relates in the sense of security. Accordingly, the name of the flashlight is “Life Light,” hoping our flashlight will save lives in danger. 

The first step will be online crowdfunding on Indiegogo to raise capital. As crowdfunding allows access to funds from various individuals and can also enhance the company’s distinction and credibility, it is a reasonable choice as our business idea is innovative and unique and will be able to attract substantial funding. Fittingly, the transparency that crowdfunding requires fits with our social-enterprise business model and supports positive brand image-making. The implementation of centralized communication on crowdfunding platforms facilitates the interaction between our company and prospective funders, connecting the business with possible partners to work. This will also allow us to secure capital while maintaining ownership and control of the company through the retention of equity. Also, as a show of loyalty to our first customers within a year of opening, a galvanic cell will be given with the nightlight that can be appended as the battery. We are willing to give a 20-30% share equity to shareholders with funding and support in the first manufacturing process.  

We are also seeking partnership with Shanghai American School merch shop by advantaging the opportunity to receive support from our school in showcasing our idea and selling the nightlight in the school shop. This will help us easily reach a large audience in a supportive environment.  

Equipment Details 

• Switch 

• Polycarbonate Lenses 

• Reflector 

• 2 LED Bubs 

• Teensy Coding Board  

• Copper Strip  

• Zinc Strip 

• PVC Black Granules 

• Melted Plastic Pellets 

Customer Analysis  

As our main objectives are environmental and social sustainability, the primary target market for the nightlight would include individuals and organizations that prioritize both environmental sustainability and safety. This could include environmentally conscious consumers, outdoor enthusiasts, disaster response organizations, and businesses looking for eco-friendly and reliable emergency lighting solutions.  

Our nightlight may be promoted to a wider range of people who are interested in climate issues and willing to take positive actions in society. These customers value products with energy-efficient, high safety standards, and “buy one (nightlight) donate one (Life Light: our eco-friendly flashlight),” which is the mission of our business. Through the purchase of nightlight, they not only get long-lasting and environmentally friendly night light but also donate a Life Light to the areas where natural disasters are common. 

Creative consumers who are interested in technology are part of our target consumers as we provide DIY kits with a galvanic cell for the nightlight. This encourages them to purchase the product as they might be interested in creating their own LED product. 

Additionally, customers who are generally seeking long-lasting and durable emergency lighting solutions would also be potential targets in the future. A nightlight is something that everyone needs in their house, and this aspect of nightlight ensures that we have enough consumers that value the product. Therefore, after initially promoting to our primary target consumers and gaining popularity, we can broaden the range of our target consumers. 

Business Value Proposition 

The environmentally sustainable nightlight and a galvanic cell offer a unique value proposition that sets us apart from competitors. Firstly, as the products are designed with a strong focus on environmental sustainability, they may provide customers with a solution that aligns with their eco-conscious values. Moreover, by simply purchasing the nightlight, they may contribute to social sustainability by donating one Life Light, which serves as a motivation of the consumers. By utilizing energy-efficient technologies and non-chemical resources, we’ll ensure our products are environmentally friendly. Secondly, our products prioritize safety to ensure that customers have reliable and high-quality lighting during emergency situations as we adhere to strict safety standards. In addition, our nightlight with a galvanic cell offers long-lasting durability, which provides customers with a cost-effective solution. By selling DIY nightlight and a galvanic cell together, we can provide consumers with the chance to build their own environmentally sustainable LED product. Our business value proposition offers environmentally friendly, safe, and reliable lighting products that meet the needs and preferences of customers who prioritize both sustainability and safety. 

SWOT Analysis 

Our business offers a unique and environmentally friendly product, which combines a nightlight with a galvanic cell. Lithium-ion batteries, used in most night lights, are harmful to the environment as they contain toxic metals like nickel, cobalt, and manganese. Our product, on the other hand, runs without battery and utilizes relatively harmless materials like zinc and copper. Our business also focuses on addressing the need for flashlights in emergency situations. Especially with the rise in environmental and social consciousness, these factors will set us apart in the market and create a strong brand identity in consumers.  

Our nightlight is set at a high price point in order to cover the external costs of donating a Life Light. ⁤This may limit accessibility for consumers who are conscious about price. ⁤⁤In the initial stages, there will also be a lack of product variation, which may limit our business’s appeal to a diverse audience. Moreover, relying on non-profit organizations and online media platforms for advertisement may limit our business's marketing reach and brand visibility, especially if not a lot of budget is invested into these areas. 

The relatively large amount of competition and our unique product make our business a ‘question mark’ in the BCG growth-share matrix. Although the product will not have a high market share in the initial stages, the innovative features that are not seen in the market suggest high growth protentional. A night light is also a common household item, and if our product offers a compelling advantage over traditional battery-powered lights, there could be a huge market opportunity. With appropriate investments, our product can become cash cows and ultimately stars. Furthermore, after attaining a fixed profit, we can start a buy-one-donate-one campaign where we donate one Life Light, our emergency flashlight made with a galvanic cell, for every night light purchased. This campaign can attract active consumers who are interested in creating a positive impact on the world. Moreover, our business’s mission in achieving environmental sustainability and safety will help it partner with community organizations. Collaborating with these charitable organizations, retailers, or other businesses aligned with social causes can expand our business and increase sales.  

Although unique, the design of our product is relatively easy to replicate. Other producers could easily attain the supplies needed to create this technology. Therefore, there could be an increase in competitors who sell similar products in the market, which decreases our market share. 

Competitor Analysis 

The night light industry has been steadily growing due to the increasing demand of aesthetically pleasing light sources as the trend of home decoration grows. Moreover, an eco-friendly source of light would more likely attract consumers in today’s market in which environmentally friendly products are appealing. However, we still need to acknowledge the importance of emphasizing unique features and aesthetics in our product due to the abundance of products in the night light market which is subject to minimal change and innovation. 

Competitor Identification 

1. Philips Night light (https://hk.shop.lighting.philips.com/product-category/night-light/) 

   1. Philips provides a wide choice of night lights, each in different sizes and with unique aesthetics. As one of the industry leaders in the market of night light, Philips night light generally has a simplistic style with long lasting quality.  

2. Dynamo powered flashlights (environmentally friendly source of light) (https://www.sosproducts.com/no-battery-lights-s/1853.htm) 

   1. Dynamo powered flashlights are survival flashlights that do not require battery. Cheaper than many other flashlights on the market, Dynamo powered flashlights are similar to our product since the flashlight is powered without the need for an outside power source. 

3. LED Night light (https://www.gelighting.com/fixtures-and-accents/night-lights) 

   1. LED Night lights are popular among the young demographic as they add a variety of stylistic color tones to their room. GE lighting allows consumers to freely place the LED strips, with long lasting durability. GE lighting is also energy efficient, which appeals to many cosumers that are interested in reducing energy waste. 

Competitive advantage/ disadvantage 

• The biggest competitive advantage that our product possesses is the mechanical advancement of the galvanic cell. From the use of galvanic cells that do not require outside energy sources, consumers can place the product without restraints.  Another competitive advantage that our product has is the consumer’s ability to change the product accordingly to their needs. Our product offers both the night light and the galvanic cell which allows the consumers to utilize the cell to make their own light source. However, creating an aesthetically pleasing product poses a challenge for the feasibility of our product. Even with the existing benefits of our night light, the sole purpose of buying a night light is to illuminate the surrounding in an aesthetically pleasing manner. By developing our products into multiple prototypes, our group would satisfy our consumers' needs. 

Marketing 

The marketing will be based on the unique selling point of our company, which is the environmentally and socially sustainable aspect of our product. We will communicate these features through social media platforms. One media we will use for marketing is Instagram, as it is a highly visual platform. Uploading information on Instagram allows us to promote our product and increase brand awareness to a large pool of potential customers interested in environmental and social sustainability. Moreover, we can gather data analytics and measure engagement on social media. Features like comments, likes saves, shares, and replies make Instagram a highly interactive platform. Through the interactive edge of Instagram, we can receive direct feedback from the customers. We can also use Instagram challenges to increase customer’s engagement with our brand. At the start of the business plan, it was mentioned that a galvanic cell would be given with the nightlight. We can start an Instagram challenge of giving prizes to individuals who make the most innovative or efficient product with the galvanic cell. Instagram users will also be told that the winner’s idea will be developed to be sold as one of the products in the future. This will help draw attention and increase sales, as social media marketing is both efficient in cost and quality to a newborn startup company. With a distinct unique selling point, the company will be able to show competitive advantage against other companies within the technology market.  

Partnerships with local organizations such as the Special Aid Fund (SAF) in China who targets to support non-Chinese race households who are affected by natural disasters have urgent needs will be made connecting as a company as foreigners in China to other foreigners in China as individuals who are less prioritized to be saved in natural disasters by the government. This will allow more efficient marketing, raising funds from many external countries. 

The company will also own a website introducing the company and transparently show the number of Life Light donated with the number of partners and mention areas where they are donated. This will allow awareness from potential customers and understanding of the company and will be able to build trust with transparency.  

Simplified Financial Calculation for the Next 3 Years 

Year	Current assets	Revenue	Expense	Net profit	Marginal
0	Capital in Cash	0	50%	0	0
1	95%	70%	25%	45%	45/70
2	145%	80%	30%	50%	50/80
3	225%	130%	50%	80%	80/130

*Percentage is in relation to the initial Captial in Cash 

*Expense is expected to be increased by the end of 2nd year due to an increase in production cost 

*Revenue is expected to gradually grow due to the high prices of products. 

*Break-even point is expected to be reached at the start of the 2nd year, 

*1% of initial capital in cash equates to 1 COGS 

Balance Sheet of March 2024
Life Light
Type	Value	Description
Current Assets	Capital in Cash (CNY)	Start-up cost of Life Light
	N/A	Prototype
Current Liabilities	20% of Start-up capital	Cost of Equipment on Prototype and goods
	0%	Inventory management

Income statement of March 2024
Life Light
Type	Value	Description
Current Assets	Capital in Cash (CNY)	Start-up cost of Life Light
Account receivable	N/A	Patent of Galvanic Cell implementation on lighting
Expenses	5% of current capital	Cost of prototype produced
	15% of current capital	Cost of goods produced
	5% of current capital	Operating cost of equipment used
Profit	0	Did not start selling products yet

Cash Flow statement of March 2024
Life Light
Type	Value	Description
Revenue	0% of initial Captial	Did not start selling products yet
Costs	20% of initial capital	Cost of prototype and goods produced
	5% of current capital	Operating fee of prototype and goods
Net Cash Flow	-25% of current capital

Excel Link to Financial Statements: LIfe Light Financial Statements 

Next Steps 

For our next steps, we will be making other emergency products that are environmentally friendly and socially beneficial. For instance, emergency lanterns and glow sticks may be made with our galvanic cells. To create a fixed profit, we will be expanding our business through the rental service of Life Light as well. To raise awareness of the product and make profits out of it, we will utilize both online and offline channels to reach our target audience, which may include outdoor enthusiasts as they are the ones who need a Life Light. We may also consider partnerships with local outdoor retailers, event organizers, or emergency preparedness organizations to expand our reach to a broader range of consumers and increase profits. 

Introduction of Team Members and Their Roles 

• Sujin Kim (co-Founder) 

  • Sujin Kim is the Chief Operating Officer of Life Light. As a co-founder, she provides overall direction and provides a structure for business proposals and the company's potential product development. 

• Hayoon (Katherine) Bae (co-Founder) 

  • Katherine Bae is the Chief Executive Officer of Life Light. She provides overall direction and leadership for the company. 

• Gaeun (Jenny) Bang (CMO) 

  • Gaeun Bang is the Chief Marketing Officer of Life Light. She is responsible for planning and developing the company’s marketing and advertising initiatives. 

• Woojin (Jason) Kim (CFO) 

  • Woojin Kim is the Chief Financial Officer of Life Light. His contributions include financial projection, competitor analysis of the social enterprise, and product designs with 3D modeling.