CommuniGlove

Business Plan

Prepared by:

Mr. Vishnu Vasudev, CEO

3425 Burnet Dr.

Plano, Texas, 75025

(469) 403-6611

[email protected]

communiglove.weebly.com (website under construction)

Table of Contents:

1. Executive Summary
2. Company Description
3. Market Research
4. Product/Service Description
5. Marketing and Sales
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1. Executive Summary

CommuniGlove manufactures an innovative augmentative and alternative communication (AAC)

device for stroke survivors experiencing difficulties in verbal communication due to hemiparesis
(weakness or paralysis in one side of the body). This company’s eponymous device, the
CommuniGlove, is a low-cost wearable electronic device. The device is a one-handed glove that
can be used by stroke survivors whose hemiparesis prevents them from being able to use
two-handed devices. The fingers and palm of the glove are covered in keys representing ASCII
characters, hardware functions, and customizable strings of characters, just like a traditional
keyboard. However, these keys vary significantly in their positioning. Unlike a traditional
keyboard, the CommuniGlove is optimized for one-handed typing, with keys positioned to
maximize ease of typing. The typical QWERTY layout is problematic because it is intended for
two hands, but moreover, it is designed to maximize speed by encouraging users to alternate
hands while typing. The arrangement of the QWERTY keyboard is such that letters that
commonly appear together are not placed further from each other, allowing one hand to prepare
to type the next letter while the previous letter is being typed. Therefore, even a modified
QWERTY layout does not make sense for a one-handed keyboard. The CommuniGlove is not
just a one-handed keyboard, however: it is also wearable. Because typing on the
CommuniGlove involves touching the tip of the thumb to one of 28 different locations on the
remaining 4 fingers and hand, some keys are harder to type than others. Therefore, the letters
that appear most frequently in the English language are mapped to the easiest locations to
touch, while less frequently used letters are mapped to harder locations to press. Another major
feature of the CommuniGlove is that it can connect to any Bluetooth enabled device. This
means that users can communicate over all sorts of electronic mediums and are not restricted to
in-person communication. This also means that through translation and text-messaging
services, stroke survivors with hemiparesis can communicate with people across the world, and
in different languages. For in-person communication, users simply use the associated phone
app with a text to speech and notepad-style interface. The device’s built in laser pointer also
facilitates non-verbal in-person communication for situations where pointing is easiest.
Additionally, the wearable nature of the CommuniGlove means that it can be used while the user
is performing other tasks, just like how verbal communication is possible when performing
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unrelated tasks. 2 programmable keys on the CommuniGlove allow the user to have real-life
“keyboard shortcuts” for commonly used phrases, simplifying the communication process
further. In these ways, the CommuniGlove offers a low-cost, easy-to-learn, and universal
communication method for stroke survivors that is capable of rich communication comparable to
verbal speech.
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2. Company Description

2.1 - Mission Statement

The mission of CommuniGlove is to empower stroke survivors by increasing their ability to

communicate with others.

2.2 - Business Goals

In the first year of operation, CommuniGlove aims to -

1. Have 50 preorders for the device at a reduced price

2. Earn a revenue of 1264 dollars
3. Finish developing version 3.0 of the device
4. Set up a manufacturing facility capable of producing 75 pieces (of the device) per year
5. Begin manufacturing the CommuniGlove

In the long term, CommuniGlove aims to -

1. Grow the business at an annual rate of 10% (YOY) for the first 5 years from launch
2. Reduce operational costs by 5% by optimizing efficiency
3. Increase the percentage of non-local customers by 5% each year

2.3 - Key Factors to Success

1. Convincing stroke survivors to take the time and effort to learn to use the CommuniGlove
2. Setting up an effective manufacturing system to produce quality products
3. Convincing doctors and stroke associations that the CommuniGlove may be an effective
AAC device for certain stroke survivors

2.4 - Principal Members

Vishnu Vasudev - Owner, CEO, and Primary Designer

<Mentor> - ____ (Ex. Medical, Scientific, Legal, etc.) Advisor

2.5 - Legal form of ownership of The Green Bean company

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CommuniGlove is the DBA of the sole proprietorship owned by Vishnu Vasudev

2.6 - Industry Contacts

Vishnu has contacted numerous members of the Health Wildcatters accelerator program,
including its CEO, Hubert Zajicek. Health Wildcatters is DFW’s premiere healthcare accelerator
program, attracting participants from around the world. Health Wildcatters develops startups
through multiple stages by providing mentorship, among other things, through a network of over
200 mentors. Vishnu has also contacted members of Capital Factory, a less traditional program
that introduces startups to investors, and members of the Texas Healthcare Advisory Council, a
Frisco-based healthcare industry professional network. These industry contacts will be
beneficial to CommuniGlove’s future development, especially in overcoming hurdles in
manufacturing, intellectual property, and regulation.
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3. Market Research

3.1 - Market Information

The United States is the largest medical device market in the world, which is growing with no
signs of slowing. Increased life expectancies due to improved healthcare are often credited with
producing a large elderly population, who are significant consumers of medical devices. As
America’s population continues to age, it is highly likely that the medical device market will only
grow. The United States provides a strong domestic manufacturing industry with the associated
marketing and distribution advantages, as well as high healthcare costs that create a demand
for affordable healthcare products. Specifically in Collin County, government data reports a
steady increase in the percentage of elderly residents. As elderly people are more likely to have
experienced a stroke and also encounter greater difficulty in learning complex alternative
communication methods, Collin County appears to be a strong market for my device. Although
Collin County has a lower stroke rate than the national average, Collin County’s high medical
insurance rate and high average household income present it as a strong market for medical
devices.

The AAC market for stroke survivors features strong competition from a variety of methods, new
and old. The oldest methods include the highly impractical writing and gesture communication.
Newer alternatives include communication boards, which contain a few commonly used words
and phrases that can be pointed to. More advanced versions of these exist as well, in the form
of the communication tablet, an electronic device featuring dynamic communication boards,
often along with speech therapy exercises. Finally, some of the most recent advances include
communication systems for highly-paralyzed people based on the electromyographic or
light-based tracking of eye movement.

3.2 - Customer Profile

CommuniGlove’s target customers are stroke survivors or families of stroke survivors suffering
from hemiparesis and an associated difficulty in verbal speech.
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3.3 - Company Advantages

When compared with writing, the CommuniGlove requires far less fine motor skills and is more
suitable for stroke survivors, whose motor functions are often limited. The CommuniGlove is
more universal than gesture-based communication as well, as the listener does not need to be
trained in said gestures to understand the user. CommuniGlove is superior to traditional typing
using a keyboard due to its one handed and wearable nature, allowing for its use in more
situations. Although the CommuniGlove does not integrate speech therapy and rehabilitation
with its communication capabilities, it can be used in a greater variety of environments due to its
universal nature. When compared with advanced eye or muscle tracking solutions,
CommuniGlove offers much faster communication at a much lower price. Certainly, the
CommuniGlove would be far inferior to eye-tracking devices for people with quadriplegia and
other forms of severe paralysis, but this is often caused by diseases other than stroke, making
people with these diseases not part of CommuniGlove’s target customer profile.

3.4 - Regulations

Medical devices are governed by Title 21 of the Code of Federal Regulations and are under the
jurisdiction of the Food and Drug Administration. It is Vishnu’s understanding that the
CommuniGlove is a Class II medical device as it is a “powered communications system”
Although Class II devices are typically considered to pose moderate risk by the FDA, “powered
communications systems” are granted an exception to the 510(k) premarket notification
procedure typically required of Class II devices. Because of this, the CommuniGlove can be
directly marketed without needing to file any forms with the FDA. As long as the marketing
claims are not false, no government approval is needed to market the CommuniGlove.

3.5 - Potential Barriers to Entry

● Too small of a local market

● Little to no interest in pre-ordering the product

● Lack of credibility due to direct-to-consumer marketing (no physician intermediary)

● Little to no interest in learning a new communication method

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4. Product/Service Description

4.1 - Products

CommuniGlove offers a primary product, the CommuniGlove AAC device, and accessories for
this device.

The full list of products is as follows:

● Full CommuniGlove Bundle (Smart Glove + Control Box)

● Replacement Smart Glove

● Replacement Control Box

● Replacement Rechargeable Battery

● Replacement Charging Cable

● Charging Stand

The CommuniGlove is currently in its second version, v2.0, and v3.0 is being developed. v2.0 is
a fully functional prototype that illustrates the functionality of the CommuniGlove technology. In
v3.0, the device’s form factor is shrunk significantly due to the usage of more application specific
electronics. NFC functionality is being added in v3.0 and the associated phone app (free) is
being improved. The other prominent improvement taking place in v3.0 is a redesign of the
Smart Glove, moving from a plastic glove, copper touchpoints, and exposed wires to a cotton
glove with integrated wiring and touchpoints made of conductive thread and fabric. The all-fabric
redesign will significantly improve the durability, comfort, and appearance of the CommuniGlove.
Furthermore, as the Smart Glove and Control Box are two separate pieces, the glove can be
disconnected from the box and washed.

This development process is the reason why CommuniGlove is focusing on gaining preorders
and finishing v3.0 this year, and not on manufacturing large volumes of the device. The
functionality of the CommuniGlove v2.0 serves as an assurance that the v3.0 will work, thus
lending the credibility integral to garnering sufficient interest in preorders.

4.2 - Costs
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*Note: All costs and revenue calculations are based on the sale of 50 Full Bundles/year.
Accessory sales are expected to be comparatively low and thus not included in these
calculations.

Material Costs

Teensy 4.1 Board 27 $

Rechargeable Battery 5 $

HC05 Bluetooth Transceiver 6 $

Perfboard 0.25 $

NFC Sticker 0.30 $

Laser Diode 0.45 $

Total Control Box Cost 39 $

Cotton Glove 0.75 $

Silver Conductive Thread 0.40 $

Conductive Fabric 0.40 $

Ribbon Cable 0.35 $

Plastic Box 0.50 $

Total Smart Glove Cost 2.40 $

Full Bundle Material Cost (50 Full Bundles/year) 2070 $/year

Additional Costs

Online Store 85 $/year

Shipping and Packaging (50 Full Bundles/year) (USPS Priority Mail) 420 $/year

5’ by 5’ storage space 400 $/year

Local marketing costs 365 $/year

Estimated Manufacturing Costs (100 hrs @ $10/hr) 1000 $/year

Total Additional Costs 2666 $/year

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4.3 - Product Pricing

Product Pricing

Full CommuniGlove Bundle (Smart Glove + Control Box) 120 $

Replacement Smart Glove 25 $

Replacement Control Box 100 $

Replacement Rechargeable Battery 15 $

Replacement Charging Cable 10 $

Charging Stand 25 $

4.4 - Revenue

Revenue

Full CommuniGlove Bundle Cost (50 Full Bundles/year) 4736 $/year

Full CommuniGlove Bundle Revenue (50 Full Bundles/year) 6000 $/year

Revenue 1264 $/year

Profit Margin 21.1 %

4.5 - Product Lifecycle

All current CommuniGlove products are being developed and inventory will be accumulated.

4.6 - Intellectual Property

A preliminary trademark search has been performed for the name CommuniGlove, revealing
that the name is available to be trademarked, which will be done in following months. Similarly,
the domain name communiglove.com is available for purchase, which will also be done in the
following months. The Twitter handle @CommuniGlove has also been parked for future use.
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A non-provisional patent application for the CommuniGlove device is in the process of being
written and will be filed in the following months. This will afford the greatest intellectual property
protection out of all the measures previously described.

4.7 - Research and Development

CommuniGlove is planning to conduct research on the following:

● Finishing the development of version 3.0 of the device

● Testing said version with the target customers

● Optimizing the manufacturing of the device to reduce labor necessary

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5. Marketing and Sales

5.1 - Growth Strategy

To grow the company, CommuniGlove plans to:

● Showcase the device at meetings of the Frisco Brain Waves stroke support group and
the American Stroke Association (Dallas)

● Present the device to doctors treating stroke patients

● Present the device at medical device trade shows

● Engage solely in local marketing for the first year, and then spend an increasing amount
of money on national marketing each following year