UTD Innovate Business Idea Competition

!UT Dallas Business Idea
!Competition
!
!Preliminary Submission
These are the parameters to change when creating
or refining a venture idea. Think of it as sketching
your idea.
Please address each of the questions below as fully
as you are able within the space provided.

!
! Summary
1.

Team: Sprout Crutch Attachment

Customer

People

V
P
Business
Model

Technology/
Science

Value
Proposition

Offering

a. Briefly describe your business idea. Who is the customer? What is their need or
problem (their “job to be done”)? What is your offering? How will it solve the
customer’s problem?
PROBLEM: Current crutch models are inconvenient because you have to always think
about where you want to put a crutch before you let them go. There is currently no
cost-effective solution on the market to remedy this problem.
IDEA/OFFERING: An attachment to current crutch models that allows the crutch to
stand upright and not fall down when crutch is left unattended.
CUSTOMER: The customer is any person with an injury requiring the use of crutches.
SOLUTION: An attachment to a crutch that is weight triggered to prevent the crutch
from falling.

!

2. Who is Your Customer?
a. Who is the user? Who will use and benefit from your offering?

Preliminary Submission Form
!1
September 2012 – v2

- UT Dallas Bus Idea Competition - Fall 2012 - v2

!Competition
!


USER: Anyone requiring the assistance of crutches.
Statistic: An estimated 566,000 people in U.S. use mobility devices such as canes,
crutches, and walkers. (H. Stephen Kayle, 2000)
BENEFICIARY:
•

Any person requiring a crutch

•

Crutch providers (such as hospitals, clinics etc…)

•

Crutch manufactures

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a. Who is the economic buyer? Who will make the purchase decision? Who will pay
you?

!2


!Competition
!


•

Crutch users via online marketplace (company website, Amazon, etc…)

•

Crutch Providers:
o
o

Private clinics

o

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Hospitals

Medical equipment retailers

o

Medical equipment manufacturers (i.e. PSS, Gulf South)

a. How many buyers are there? How many in the market area you can realistically
address?
Statistic: Every year about 10 million pairs of crutches are sold in the United States.

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Source: http://www.twincities.com/business/ci_21761042/building-better-crutch

3. What does the Customer Need or Want? What is the Problem to be addressed?
a. What does the customer need or want? What is the problem to be addressed?
The crutch is limited to the person always holding it and the alternatives are
expensive; We are addressing this limitation by providing an innovative and cheaper
solution for self-standing standing.

!

For example when a person has to sit down, they have to let go of the crutch. The
person has two options, either lay the crutches out on the floor, or find an
unobstructed location to lean the crutch on; this is a hassle for the injured.

!

Other examples are actions that require you to reach out such as: opening a door,
grabbing an object, or getting into the car.

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a. Why is the problem important to the customer? How do you know? How have you
validated the need?
Crutches were created to help the patient with their daily activities; however current
crutch models are restricted to the person constantly supporting them. Removing this
restriction from crutches will give patients a greater degree of freedom.

!3


!Competition
!


a. How is the customer currently addressing this problem? What are his/her
alternatives?
There is currently no cost-effective solution on the market that allows the current
crutch to self-stand.

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ALTERNATIVES:

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a.

The only alternatives available to customers right now are:
• Crutch harness/belt – $20 - This is a body belt that secures crutches to your
body. The problem with this alternative is that it does not allow you to be
independent of crutch.
• Knee Walker - $200
• Hands Free Crutch - $350
Why is the problem important to the economic buyer? How do you know? How
have you validated the need?

!4


!Competition
!


Business: Having a practical crutch is a more desirable solution which will drive sales.

! The attachment allows for a safer crutch, by reducing crutch related injuries.
Safety:
•

Handling the crutch becomes a liability, when you have to let go of it (such
as opening a door).

! solution is much cheaper and affordable to use for more people. Based off of
Our
statistics, large percentage of crutch users are low income people.

! Stephen Kayle, 2000)
(H.
! 78% of people feel they are limited by the use of crutches:
About

!5


!Competition
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4. What is Your Offering? How will you solve the Customer’s Problem? 
a. What type of offering is envisioned? i.e., commodity, good, service, or experience?
Goods
a. Name and describe it…
Name: Sprout Crutch

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!
a.

Description: An attachment that goes to the base of a crutch, and expands/retracts to
prevent the crutch from falling down. This attachment works via weight triggered
mechanism.
Sketch it… (attach a sketch of the offering if appropriate)

!

a. Do you have any core, differentiating technology or science? How will you protect
your intellectual property?
The design of this attachment will have to be developed. The IP will be protected via
design patent.

a. Are there any legal or regulatory requirements to be addressed?
•

CE Certification (for Europe)

•

Good Manufacturing Practice (GMP), (US FDA: 21 CFR 820 Subchapter H)

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FDA Class 3 DME Approval (http://tinyurl.com/FDA-medical-devices).
Determination of safety and effectiveness.

!6


!Competition
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a. How will the user use your offering? Will any special skills or training be required?
No special training is required. The current crutch style has been used for decades and
is common knowledge for most of the population. The standing crutch will appear as a
normal crutch so it should be intuitive in use.

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The sprout attachment will function via a weight-triggered mechanism. When weight is
applied to the crutch (during normal use) the attachment will withdraw. When weight
is removed, the attachment will sprout allowing the crutch to stand freely.

!

a. Why will the customer/economic buyer choose your solution over the alternatives?

! a customer is presented with multiple walking aids, they will choose the most
If

convenient aid that will allow them the most function with their condition. A standing
crutch will be less limiting for daily activities. Due to increasing costs of health care
(medicare requires 20% out of pocket fee), limited coverage by insurance and
expensive alternatives: the customer will choose the more cost effective solution.
5. What is your Business Model?
a. What is your revenue model? How will you get paid?

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We plan to outsource manufacturing of attachment (CMTC Solutions), and we will
get paid by selling product to distributors and retailers. We will also have an online
store to sell directly to customers.

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b. How will you deliver your product/service? What channels will you use? How will
the channel partners be compensated?

!7


!Competition
!


We will act like the middleman during the transaction, get the product from the
manufacture, and ship/sell to retailer. The channels we will use are: manufacturer,
packaging, delivery to distributor, and marketing.

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The manufacturer will be paid per order basis.

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c. What activities will be required to produce/deliver your product/service to the
customer? Which activities will be performed in-house? Which will be outsourced
or performed by partners?
The actual manufacturing of the Sprout crutch will be outsourced to another
company. Manufactures will be paid per-order basis upfront.

! packaging and marketing will be done in-house.
The
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Inventory will be kept at a storage unit.
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Shipping will be done in-house through UPS/FedEx.
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Customer support and refund will be done in house.
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d. What are the key elements of your cost structure? What costs will be incurred in
creating, producing and delivering the product/service to your customer?
Key elements
•

Production: Cost of 1 Sprout crutch attachment = ~ $3 (in bulk)

•

Packaging – Printing and creation of packaging of goods

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6. Who are the People? 

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!8


!Competition
!


a. Who are the people involved in starting this venture? Who is on your team?
David Golynskiy
Shazim Mohammad

a. What relevant knowledge and experience do they bring to the table (technical
skills, domain knowledge, startup experience)?
David Golynskiy – Business / Health Care Background , marketing and advertising
experience.
Shazim Mohammad – Business / Health Care Background, operations manager.

a. What additional knowledge/skills/experience will you have to add to your team to
successfully launch this venture?
•

Prototype engineer to finalize design of crutch attachment.

•

Customer Service Support Staff

•

Shipping/Receiving Manager – Inventory management

•

Medical equipment distributor to get product from manufacturer to
retailers.

a. Who are your key advisors? What roles will they play?

!9


!Competition
!


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Business advisor to help guide us on key decisions such as selecting
manufacturer.

•

Software Consultant – custom software for our company operations

•

Advertising/marketing professionals

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7. What will it take to get started? 

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!10


!Competition
!


a. What are the key tasks to be accomplished in order to launch this venture?
(Describe each task and indicate total elapsed time in week from start to launch.)
Task Description

Weeks

1

Creation of prototype

4

2

Full Business Plan

6

3

FDA Approval and Licensing

3

4

Find a manufacturer

4

5

Setup packaging/shipment/inventory (in-house)

2

6

Market and show prototypes to potential distributors

10

7

Setup customer support system

3

10

8
9

a. What resources (funding) will be required (just a rough estimate)? How will they
be used?
Use of Funds

Amount

1

Patent/Design Engineer

$10,000

2

File a patent

$10,000

3

Testing

$2,000

4

Trademark

$4,000

5

FDA Approval

$62,000

6

7

8

9

TOTAL $88,000

!11


!Competition
!


Bibliography
H. Stephen Kayle, P. (2000). Mobility Devices Use in the United States. Disability Statistics
Report , 60.

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!12


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