D3D Financial Planning

Intro

We are proposing a 3D Printer Construction Set Approach 3D Printer. We train entrepreneurs and builders, and the revenue model is workshops - up to 100-200 people in an auditorium - where up to 100 machines are built in a single day as a way to realize advanced, distributed production that can happen in any local open source microfactory. Workshop participants are trainees who pay a certain amount above the bill of materials for attending, or workshops can focus more on the enterprise training aspects.

The radical approach is completely open source, in that we publish all of our information freely on-line as a way to motivate a public effort where a high-performing process attracts volunteer contributors to produce all the necessary assets. This ethical motivation is intended to break new ground in terms of public-interest business development.

The unique value proposition is a construction set approach + the Distributive Enterprise aspect. The construction set approach means that we can scale the size and lengths of all the parts, while parts retaining their same design principles such that parts of different sizes can be mixed in a build. Moreover, parts can be multiplied - such as the axes used can be stacked piggyback or one on top of another to make larger or stronger machines - and metal frames can be fastened together to make larger frames. Supermagnets are used to attach some parts to the metal frame, and Cat 5 cables are used throughout to make for completely modular design. On the distributive enterprise aspect, all designs and enterprise designs are open source, where OSE's business model is education as opposed to production.

Goals

• $200k stable revenue level within 12 months of Feb. 1
• Assumption: open source process automation

• in house 3D print farm + automation up to auto part harvesting + website modules
• One click part ordering
• Shopping basket
• marketing copy + assets

Open Source Assumptions

• Publishing openly is the only true way to achieve distributive enterprise and therefore change global culture
• If someone else is capable of taking our market share, they should, and we should continue to innovate
• In-house enterprise vetting means that we have proven a business model before it is stolen, whereby we establish primacy and a market share
• We assume constant innovation as well as cultural transformation as our route to success

Scenarios

• Definitely need to get to a point where 1 event per month is feasible. The marketing function has to be high performing to realize this.
• April 22 first build, if successful, start 3 month Immersion Program, 4 students - June 1.
• Each student runs a workshop per month - $16k in normal scenario, $32k/month - good scenario (~12 students sign up), $8k - bad

• Pending robust design by April 22, 2017
• Defection issue: address it by providing a geographical 'franchise area'?

• End-point milestone of Immersion Program is creating training and enterprise assets of D3D#Distributive_Enterprise
• Price structure is $300 above BOM cost per workshop seat for people who take a 3D printer home; $150 per assistant (doesn't take printer home)
• Alternative: achieve a 100-person build, $30k net - which almost doubles are revenue requirement

Issues Notes: different scenarios have different requirements/development paths.

• 100-person build is an interesting option
• If we have a truly 1-click DIY ordering option - do we charge for that service to get revenue? Code of course remains open source.
• It appears that the overall process is so complicated that an average person (a consumer) is not able to go through it, thus we have planty of customers.
• If customers are makers - then they are not likely to attend a workshop
• Perhaps we need to refocus workshop on other values - including inspiration, networking event, community event, etc.

Approach

• Getting to $200k would mean $17k/month by Feb 1, 2018, as opposed to having made $200k by Feb 18, 2017
• In-house earnings should be $200k - independent replication should also happen. Competition level unknown - but to date - it has not happened because we are asking a lot from average people. Event organization is too complex - can it be uberized? Or distributive uberized?
• Doubling growth plan annually, with $200k stabilized from 3D Printing only
• Perhaps structure as divisions, with each division taking a certain product line.

Strategy

• April 22 Event
• Includes evening pre-conference with Precious Plastic and 4 total heavy hitters in OSPD
• Includes second day with grinder and filament maker for recycling
• Create a long term 3D Printed High End Cordless Drill Challenge, publicity in Wired + Make, $5k reward, 6 month design period.
• Start OSE Podcast