II. EXECUTIVE SUMMARY
BigCo represents the culmination of 12 years of research, development, and field-testing of fluid treatment devices for scale and bacterial control. Research has yielded a diversified line of manufactured fluid treatment products that solve complex, pervasive problems, provide substantial safety and environmental benefits, and substantially reduce operating costs. BigCo has completed laboratory and field studies of the utility and efficacy of its water, fuel & crude oil treatment products. Its products have proven effective in 100% of applications.
Systematic sales and marketing commenced in early 2002. Earlier sales occurred primarily in the context of product development efforts, and were therefore limited, which limited earnings. Today BigCo’ primary focus (and therefore its need for capital) is on implementing and further developing the marketing and sales plan, and fulfilling related production requirements.
A. BigCo Technology Solves Problems
The Problems In Water - Hard water scale has plagued mankind since technology’s dawn. Hard water is found in varying concentrations throughout the United States. Calcium, magnesium and other hard water minerals impair plumbing and water-based heating and cooling equipment, and inhibit heat transfer by forming an insulating scale in pipes and on heat transfer equipment surfaces.2 This hard water scale causes energy loss (by insulating heat transfer), reduces heat transfer efficiency by as much as 70%, reduces equipment service life, and costs billions of dollars annually in equipment maintenance, and down time. Efficiency loss increases costs by consuming more energy to heat or cool water and to pump water through scaled plumbing systems and equipment with increased resistance.
Traditional treatment requires the use of highly toxic and hazardous chemicals, which are harmful to humans and the environment, and difficult to administer. Chemical treatment requires an extraordinarily large volume of water, and the discharge of that contaminated water into public systems. Hundreds of millions of dollars are wasted each year on costly chemical treatment, and attempting to transfer heat through hard water scale.
B. The Solution / Theory
BigCo has devised effective solutions to all of these problems through technology based on the solid scientific principles of colloidal nucleation physics and magnetohydrodynamics. The concept and science of treating fluids by submitting them to magnetic fields has been recognized and used for many years, and is well-established and accepted in the scientific community (even though many have failed to apply the principals correctly). The process is known as magnetohydrodynamics.
BigCo’ computer-assisted product designs have addressed all known critical design factors (e.g., linear velocity through the unit, magnet position and intensity), and provide the most technologically advanced and efficient fluid treatment systems available. Magnetic fluid treatment products, when properly designed and installed, prevent the accumulation of scale. BigCo’ treatment methodology has succeeded in thousands of installations worldwide with great economic benefit for users, and is recognized and used by the U.S. Government. BigCo has received worldwide testimony from dozens of companies as to the successful installation and effectiveness of its products.3 The observed results are undeniable.
III. BigCo’s PRODUCTS
BigCo currently manufactures five fluid treatment systems for water using its patented technology. The CWI Series, HydroPlexä, BoilerPlexä, AquaPlexä, and Closed Loop Systemä. Two additional patented products provide dramatic results in two unique niche markets: The Paraffin Control System for oil flow lines and Diesel Engine Performance Enhancement System for diesel fuel treatment.
CWI Series – The Magnetic Device
The heart of all BigCo technology is the basic CWI unit (Commercial Water Instrument). The CWI unit is the byproduct of four years of intensive laboratory research and installation field-tests, which sought to develop and chronicle basic information regarding the physics of magnetic fields, particularly the mathematical formulations of field intensity and spacing. Based on this research the CWI is scientifically designed to eliminate hard water scale through a unique arrangement, concentration, and focus of magnetic fields, which alter mineral properties in water (colloidal nucleation) with maximum efficiency, causing colloidal particles to resist forming the dense crystalline structure of scale.
The CWI unit is cylindrical in design, contains an array of powerfully arranged ceramic magnets, and is plumbed directly into the feed lines of each boiler, water heater, or heat exchanger. It uses no chemicals, electricity or mechanics, requires no maintenance, and is guaranteed to function indefinitely. Once installed, CWI units are permanent and never require replacement. Under standard operating conditions, the CWI unit pays for itself within 6-18 months. In some instances, this payback has been realized in as little as 48 hours.
Here is a business plan segment written for a high-tech company with a series of proprietary digital directory products for associations. This segment describes the company’s principal product:
V. TECH’S PRODUCTS
A. Link Buyers’ Guides - Tech produces stand-alone purchasing and membership software delivered on CD, and in a mirrored fashion on the World Wide Web. The principal product is an industry specific interactive buyers’ guide called “Link”, which is pre-loaded with a myriad of suppliers offering products or services that an association's members need or use on a daily basis. Each Tech directory is a comprehensive electronic buyers and resource guide that enables the user to find suppliers, resources, and affiliations (virtually anything they need to operate their business). The electronic buyers’ guide provides for industry-specific one-stop purchasing. The software combines CD-ROM and Internet technologies, but is fully functional independent of the Internet.
These digital directories do much more than printed or web-based membership directories.
- The Link search engines enable the user to search by company name, product/service category, key word, or geographic location.
- Tech’s technology enables buyers to easily and instantly locate needed products and suppliers (specifically tailored for the needs of that particular user group), view entire catalogs or video demonstrations, and then, as quick as a double click, create and electronically transmit a purchase order or quote request within seconds.
- Without depending on Internet browsers to function, the directories provide complete hyperlink connectivity to the Internet and any advertiser’s website.
- The directories enable the user (buyer) to send e-mails, purchase orders and requests for proposals electronically. Users can also fax by computer or print and mail their purchase orders and RFPs.
- In addition to listing all suppliers to the industry, each directory can contain a listing of all association members.
- The sponsoring association typically includes its organization’s content in the directory free of charge. Further, the associations allied with Tech are enabled to procure the directory for its members at no cost to the association.
Although suppliers do not pay to be listed in the directory (a listing includes name, address, and telephone on a contact page), they can choose to purchase directory content or advertising in addition to the basic listing. The advertising supplier has many options:
- An enhanced contact page with a company profile, logo and full-color image
- An entire catalog with data displayed in an easy-to-use product browser
- Product specifications
- Website Links
- Video presentations
- Scrolling screen ads
- Ticker-tape messages
- Software Demonstrations
- Full sponsorship packages.
These options provide a valuable advertising vehicle for suppliers. Because the tool enables users to instantly find suppliers when they must fill a purchasing need, vendors gain access to an industry purchaser at the very moment a purchasing decision is made. Link seamlessly directs the buyer into an advertiser’s catalog, and then asks for the order.
In its final form Tech Link directories are presented to the end user as an Association product, rather than as a Tech product. Industry associations allied with Tech distribute the Link buyers’ guide directories to the end user at no cost to the end user.
, Appendix 8 for illustrations of hard water scale.
3See, Appendix 7, which contains endorsements, testimonials, and certifications of BigCo and its products.