Business Plan

"Non-profit, as well as government agency business plans tend to focus on the "organizational mission" which is the basis for their governmental status or their non-profit, tax-exempt status, respectively." - Wikipedia

Idea

HeatSync Labs provides a collaborative workspace where engineers, entrepreneurs, students and tinkerers come together to imagine and build tomorrow’s innovations.

We break down barriers to innovation by providing equipment and facilities to people interested in programming, hardware hacking, physics, chemistry, mathematics, photography, security, robotics, and art.

We encourage hands-on development of exciting new creations, we host talks, workshops, and encourage knowledge exchange through collaborative development projects, and we stimulate learning by providing mentoring and cross-disciplinary educational opportunities.

Our vision is a world where we re-awaken our population and reinstate the knowledge of creation in opposition to our throw-away society. We aim to empower our population, delivering the confidence and skills to compete in a globalized economy.

Overview and Plan Objectives

Market Research

• Entrepreneurs-need access to a talent pool to start building their team, need resources and connections to create their prototype
• Students and hobbyists-want to be a part of something big, want to run into big projects and be invited to help and learn
• Artists-studio space and tools

-photographers-like minded and good stuff to shoot

• Professionals(Engineers) - Need space outside of company to grow and work, need space where they can work with others outside company, and bring kids. Working for large corporations the work performed often limits engineers to working on things that the company needs and not something that the engineer is interested in.

-electrical Electrical design and simulation equipment, however, are pricey and can be difficult to locate -mechanical -wood and metal, fairly comodotized, but they yearn for community, the garage is lonely!

• Scientists?
• Kids!-we need to stop hiding the tools of creation from them. They need to grow up in worlds, around tools and the creators in the community, so they understand that these things are available to them and can begin building their knowledge network early.
• The curious and motivated! - We get away with this vagary because of our non profit status. We want to target anyone interested! We want to challenge passers by into walking in and we want to put a tool in their hand. It is time to return to the tools of creation to our people!

Our Product

Most importantly, what we provide is a community for these people to be a part of. A small subset of tools can be readily purchased and accessed, but more and more people are moving away from working alone in their garages to connecting with their communities and on the internet. We broaden horizons by having all these people and resources in the same room, breaking down the mental block that these tools are not unavailable or unapproachable. We bring the tools of creation OUT of the industrial districts.

We also bring these tools out of the silos of our tech school and college brethren. True cross discipline work can not happen via meetings, tech talks, etc. We work side by side whenever possible. When specialized tools or knowledge is needed our people may graduate briefly to silod learning, but the starting point must be working side by side.

Secondly we push people to get involved. There are no wallflowers at HeatSync Labs. You bring your project and work on it, or we put a hammer in your hand and we put you to work.

Lastly, we provide access to the tools of creation. We provide application IN ADDITION to theory. Truly the best way to learn XXX is via doing. Owning a true spread of tools from all disciplines of manufacturing is still hardly viable. Tools can be expensive, dirty, loud, and dangerous for the home or garage.

Experience and Capabilities

Principals (The Team)

• List the Board Members and Their Experience Levels - This was included and can be updated for our f1023

Partners, Community Partners

Who do we partner with for activities?:

• ASU
• Elementary Schools
• Gangplank
• Urban Stew
• etc.

Current Business Accomplishments

Workshops

Monthly we run a free to attend Arduino workshop where we train kids to adults how to program micro-controllers. Hundreds of people, from children to adults have attended our monthly meetings with the goal of empowering themselves with technology to solve their own problems. MORE HERE

Most recently we had been asked to create a workshop series on soldering and programing for UrbanStew another local nonprofit. Again, we wanted to instill the values of creation, having our attendees actually BUILD the computer they would eventually program. Demystifying these devices which are increasingly becoming ubiquitous.

Public Meetings

We have hosted over 24 free public educational events this year. Every 1st and 3rd Thursday we invite in a speaker to invigorate us, and them. From materials, to tools, to processes we want to empower our people with the knowledge they need to succeed. Topics have included:

• Astronomy
• PCB Layout and Design with Eagle Cad
• PCB Chemical Etching, Heat Transfer, with FeCl
• Haptic Interfaces
• Lock Picking
• Cube.ly 3D printer Design
• PaperCraft
• Thermoforming
• Near Space Project Balloon - Idaho Communications Payload
• High Speed Photography
• Haystack Project - Internet Search Anonymity Project
• Working with Acrylic
• Glass Working
• Rep Rap Made Easy - Open Source 3D Printer Design
• Tear Down Party(everyone brings a piece of electronics to tear down for parts in order to understand the underlying components)
• Lathing for fun and profit
• Electroluminescent Wire
• Monster Plush Party (Disassembling plush dolls and sewing them back together with electronics - Recycling Old Toys)
• Coffee Science and Arduino
• Arduino and VOIP - Dial-a-Lulz
• CAD/CAM Introduction
• Home Brewing

Weekly Events

Every Monday we host a meetup that we have title Augmented Humanity Night.

Every Wednesday we host a 3d Printing meetup event where we foster the innovative field of personal manufacturing. These devices are finally realizing the promises of the Star Trek Replicator, creating 3d, multi material, objects before your eyes! Even more intersting is the idea of the machine creating the machine. This is the promise delivering Moore's Law for computer chips (exponential increase as the computer designs the next computer) to the mechanical realm!

Large Scale Projects

Write it as a story?

Outreach

Our 501c3 chartered mission is education, but its also our passion.

Throughout this past year we focused on education, not only internally, but externally. It was our joy to mentor our first First Lego League teams. Our kids, mostly 9r olds, worked throughout 2010 Body Forward Challenge, as the FLL put its to "explore the cutting-edge world of Biomedical Engineering to discover innovative ways to repair injuries, overcome genetic predispositions, and maximize the body's potential, with the intended purpose of leading happier and healthier lives." They learned computer programming and mechanical and biological engineering concepts culminating in a team presentation and robot competition. The goal, again here, was to empower them to solve THEIR OWN problems. Our technique was entirely discovery learning and the adults were only there to supervise and answer questions. It was the first year for our kids and they had amazing fun. In addition our mentor won best mentor for the season.

Recently we've waded into science education waters. We've been working with a local teacher to help develop, implement and fund science courseware. Our first two labs included an earthquake simulation for student built toothpick structures, and an examination of strawberry DNA.

Internal

August 28th was the culmination of several months of preparation. More than 40 people attended our near space balloon launch, from children to adults, to help us 'chase' down the landing. A team of XXX People planned and executed the development of a payload to survive a trip to ~75k feet into the upper atmosphere, and see it safely return. Anyone from the public was welcome to join the development team and learn the multidisciplinary fundamentals necessary to launch an object into nearspace!

A new team has formed around tackling issues related to solar power generation and storage. A rocket engineer, turbine engineer, electrical engineers, students and hobbyists are all working to adapt an MIT design for a solar collector. The goal is to leverage our location in the Arizona desert to further understand renewable energy problems and solutions.

Marketing Plan and Forecast

Competitive Analysis

Universities and Tech Schools

• MCC
• EVIT
• ASU
• U of A

Incubators

• Skysong's Hackspace

High schools pulling out of access to the tools of creation because of safety, budget cuts, etc.

Colleges continue to be silos. Inter-departmental bickering and inability to communicate leads to an institution will all the tools present which are necessary to succeed, yet frustratingly kept at arms length.

Build large buildings off campus, offer offices, more closed off spaces.

Putting on tech talks and having free food doesn't build a community, it simply attracts an audience that prefers to be fed.

• Techstars
• 500 Startups

Co-Working/Collaboration

• AZ Disruptors
• Gangplank
• Co-Hoots

Hackerspaces

It's a Global Phenomenon.

We're most like a traditional academic incubator model mixed with the newer coworking model. Entreprenuers and skilled tradespeople who don't wish to work in an office alone but would rather work side by side with the other brightest minds in the community in order to build their workspace in public More specifically, we are part of a larger maker/do-it-yourself culture exemplified by Make Magazine. There are spaces are popping up throughout the united states, and globally, all with different visions and goals, but all listing themselves at hackerspaces.org.

Locally we are most like our peer coworking/collaboration sister and landlord, Gangplank. Gangplank, much like us, intends to revolutionize education, community, and collaboration. Hardware and access to tools is on their agenda, but only superficially.

What makes us different from all these is our focus on infrastructure. It has become very vogue to open a space, provide wifi and try to build community around Bring-Your-Own-Computer concepts. These purposely dodge the challenges of infrastructure. Even our schools are pulling out of this area in frustration. We refuse to back down. The infrastructure is indeed the hard part, but it is also the difference. The infrastructure, the safety, training, liability, skills and experience to make these things open to the public are the key to bringing creation back to our throw away society.

Marketing Plan

• Entrepreneurs

TechCrunch and other online sites have fetishized the startup lifestyle and it will be important to capitalize on this, tech stars, students and student groups

• Students and hobbyists-

Make culture is the big way to reach these people. Make Magazine, make blog, hackaday, hackerspace advertising are the way to reach these. On campuses, Technical students are becoming more and more disenfranchised with the opportunities and equipment available to them in academia. There was a day many years ago where the only place you could find a 'computer' was in academia, but that time has passed. There may be as many as 300,000 college and technical school students in the phoenix metro area, with only maybe 5% with arts/ design/technical backgrounds, leading to 15,000 possible customers. These customers are going to be more eager to get their hands on professional equipment, but also more sensitive to price. It will be important to stress the experience and connections membership in our elite organization can bring them, connections to local jobs and internships, as well as a start upon the career of an entrepreneur.Outreach to students should be done on campus. Poster advertising is free, and student ambassadors would be cheap to hire. Another method of reaching these users could be through ad-vertainment in the form of speeches and presentations on campus. Student groups will be another excellent way of reaching the correct demographic. Groups including Linux Users Groups, On campus Engineering fraternities and societies, will be a valuable resource.

• Artists

Find these people through the local groups. First friday, Urban Stew, colleges. Art stores. Photography competitions, showings, free nights for groups to use tools.

Also want to target craft/diy communities. Geek Girls are a huge group of girls doing interesting work in the valley.

• Professionals (Engineers) -

The IEEE Phoenix membership is 3,600 members. These members are professionals well into their careers and should have some income to be 'invested' in their future. We will want to sell them on setting out to peruse their dream rather than staying at the same job they may be dissatisfied with. Another interesting concept to be exploited is that engineers who use their companies equipment may find themselves mired in IP rights issues. The way to reach these users will be through their professional society and through professional publications including IEEE publications, Circuit Cellar, Nuts and Volts, Wired and possibly Linux publications. Another good avenue will be trade shows and strategic partnerships. It may be possible to work with the big electronics vendors including Jameco, Digikey, and Newark to cross promote by being a local presence for these online companies.

As for mechanicals these can be gotten to through local groups like Valley Metal and XX wood workers.

• Scientists?
• Kids! - Our public schools need help!
• The curious and motivated! - Walk by traffic, press, word of mouth, social networking (twitter, linked in, facebook)

Plan of Action

Current projections require 500+ sq./ft. to safely house our workshop with our current equipment and our newest addition of a laser cutter coming in next month. Our public meetings have presentations that bring in about 30 people or more on average so we would also require a space that can accommodate them. In our current location we fill up about 1000+ sq./ft.

With our members contributing an average of $50 a month, at 20 members, we're grossing ~1k a month. We are currently basing our leasing ability by these numbers as they are more reliable recurring source of income. The memberships are by no means our only source of income, however, we prefer to work from a worst case scenario to ensure our leasing arrangement is secure. Our other forms of income will be detailed in the Financial section further down.

This space will allow XX type of activity(meetings, presentations, rock shows?)

The next tool acquisitions proposed include:

• Shopbot (Wood Working Computerized 2D Cutter)
• Plasma Cutter(Metal Working Computerized 2D Cutter)
• CNC Milling Machine(Metal Working Computerized 3D Cutter)
• Injection Molding
• Industrial Sewing

Current estimates of cost at XX amount of sq ft come to ~$2k a month with utilities.

At that rate we're clearly projecting a shortfall of $6000 over 6 months, worst case (no growth). Stagnant growth seems unlikely however. Based on current growth rates we expect to be able to cover this shortfall (40 members averaging $50 a month) to clear

This is why we are shooting for a space that can house at least 40-50 members, allowing us to grow out of the next space within a year into a more final location (75-100 members) which it is expected we may max out at based on research (community intimacy issues, space and safety constraints)

Current actions are being taken to raise that money prior to move to ensure stability. We have done previous work with donations to raise larger sums, but we again want to find consistent realistic sources of revenue. Worst case scenario that type of campaign lets us run the final 6 months of our lease and allows us reevaluate our strategies.

Other revenue sources: Donations-last case scenario is a push to fund the space, our goals are to keep donations funding the TOOLS, PROJECTS, and PEOPLE. Workshops - We've seen workshops generate XXX Sales - Most recently we've also begun selling more directed tools, accessories and kits based on our workshop series. We've seen sales of XXXX

These all pad that 6k shortfall to nearly nothing.

Further, a new space opens up new funding options. For instance, there are further membership tiers to be considered based on amount of space that becomes available. Ideas include renting benches and 'studio' space to artists, continuing to host fundraising nightlife events.

Financials

Membership

We have a membership model at HeatSync Labs that has been the core of our support over our first year of expansion. Starting with the founders pitching in money to jump start the organization we now have a multi-tiered offering that allows people some options for their commitment level. Our current tiers are defined below:

• Associate Member - $25 per month, and you get your name on the list of members and access to the lab and shared equipment during the hours of operation.
• Basic Member - $50 per month, and you get the benefits of associate membership, plus 24/7 access to the lab, including a key to the building and security code. This also includes personal project space for a banker box (box provided by HeatSync Labs.)
• Plus Member - $75 per month, and you get all the benefits of basic membership, plus a locker in the lab!

As we were working towards our tax exempt status through out this year these memberships set up in a recurring fashion have already helped us a lot as we wait for the ability for pushing for larger scale funding. With memberships we can strive to offset the leasing costs for a location and use fundraising to help fund building up the shop and putting on workshops and events for the community. Based off of our metrics we see:

• An average of 2 members per month added over the past year.
• A spike in member growth per month with improved marketing campaigns.
• Sustained growth rate average of over 200% in the last 3 months.
• 77% of members are in the basic (middle rate plan)
• Lost only 2 members to attrition over the entire year.

Donations

Our history shows great success with the donation drives that we have put on. One year ago we compiled all of our general garage and workshop tools together. While having a great collection of common tools between all of us we wanted to push the boundaries to offer equipment that the every day person normally doesn't have access to. We decided to get involved with the Open Source Hardware project called Rep Rap which is a design for a 3D Printer for the masses. To jump into this project, however, we needed to collect a little over $1000. Pushing out our project idea to the group and explaining the direction we wanted to go with the group we were able to raise the $1000 in just 5 days.

Since then we've filled the shop with a lot more Wood and Metal working tools that you would find in a common shop. But to continue the trend we felt we needed to push for equipment on a whole other level. In December we started a donation drive to collect $7500 so we could purchase a 700lb. Laser Cutter and Etcher for the community. Often equipment like the 3D Printer above and Laser Cutters are locked away in University Centers and Corporate Research Labs. We wanted to provide the appropriate training for this equipment and open use up to the public to foster new creative innovation. Our goal was to receive $7500 in 30 days. And we nearly made $10,000 in 25 days!

Fundraisers

Our last fundraiser, in September, a mix of birthday party, science fair and electronic music show, targeted 100 donors for $10 each and was monetarily successful and is still regarded and spoken highly of in the community.

Grants

The completion of our 501c3 process opens up the door to local and national grants for our organization. With our research in accessibility, education, neurosciences, mechanical and electrical engineering and more our community has the opportunity to push for grants in many areas. We have the benefit of having many large scale technology companies in the area that are looking to fund innovative new ideas. Companies and organizations like:

• Intel
• Honeywell
• Avnet