Econ 331
Sam Drenth
Business Proposal
Business Proposal
Mixanator
Product Description
Mixnator is an all in one mixing system that eliminates mixing of hazardous chemicals. Since agriculture is turning into an industry where efficiency is key to success, precision application of chemicals is a must. Many farmers have totes of some kind to haul water and chemicals from field to field. The Mixanator will be able to be mounted on a trailer or on the flatbed of a straight truck for farmers or cooperatives.
Essentially the Mixanator will eliminate any hand measuring of chemicals. On the truck or trailer will be the chemicals in bulk. There will be a series of hoses and pumps to each chemical. The pumps will be run by a monitor/ computer so the only thing needed to be done is set how much of a certain chemical is needed into the computer and push go. The Mixanator will do the rest. It will have a tank where all the chemicals are mixed and all the sprayer operator needs to do is hook up the hose to the sprayer.
Customers and Value
Customers for the Mixanator are essentially any service that needs to mix chemicals. This is not limited to just farmers and row crop services. This product can be sold in a mini version to lawn care services, golf courses and pest management companies. The Mixanator creates value by being a precision instrument. Applicators save money by not adding too much chemical and the customer gets the precise amount of what they paid for. The Mixanator also keeps the concentrated chemicals confined until sprayed. Handling concentrated insecticide is very dangerous but is needed when dealing with pressures of pests. This will decrease accidents and eliminate human error.
Market and Growth
There are many specialty pumps and devises to measure and transfer chemicals but nothing I have found is a complete package like the proposed Mixanator. The Mixanator is more complex and will use products similar to what is on the market but uses a combination of products to create a more complex unit. The size of the potential market as I see it is any service or process that requires the mixing of liquid. I believe the target market is in the agriculture industry that involves more dangerous and expensive chemicals.
Opportunities for the Mixanator as far as growth is limited because it will hopefully be a high quality product that does not need replacement. However I can see suggestions from customers to create new and improved versions or creation of new products for the company. Also I am only thinking about agriculture and chemicals. There may be an opportunity somewhere else that I have not thought of. If the Mixanator becomes somewhat popular, hopefully retailers will want to advertise which will broaden the potential customer base.
Financial Support
I will have to borrow money to purchase the initial materials to build the first few Mixanators. Once the Mixanator establishes itself, sales and service will provide enough revenue to operate the business. The amount borrowed would be between $5,000 and $10,000.
Who am I
My name is Sam Drenth and grew up on a small farm with a “do it yourself” attitude when it came to fixing things. Having the skills to build things and are able to improvise when needed is what I am about. I am a critical thinker always looking at how to do things better. I listen to my peers and different ways of doing things so I can use their experiences to my advantage. This is probably not the right time to start this business yet. However when the economy turns around I believe the Mixanator will be a success.
Skills from an entrepreneurial team
I am seeking specific and general skill from everyone. All of the members need to be focused on the team and product. Being passionate, dedicated, and communicating effectively are also a must in an entrepreneurial team. Specifically for this product, having someone knowledgeable in electronics/ computer programming would be beneficial.