Business Plan

17 May 2021

Lorenz

Woodbridge, NJ, 07095

(973) 477-8424

Lorenzmotors.com

piotr.rzymski@lorenzmotors.com

Confidentiality Agreement

 

The reader acknowledges that any information provided by Piotr Rzymski in this business plan, other than information that is in the public domain, is confidential in nature, and that any disclosure or use of same by the reader may cause serious harm or damage to Piotr Rzymski. Therefore, the reader agrees not to disclose it without express written permission from Piotr Rzymski.

This is a business plan. It does not imply an offering of securities.

 

Executive Summary

The Executive Summary should briefly explain each of the below.

 

Company Description

1. Company Mission Statement

Lorenz is bringing humanity's dream of drone cars to reality.

2. Company Philosophy and Vision

a. Values: Honesty, integrity, fun, and innovation,

b. Vision: To be the leader in personal aerial vehicle, flying car, and drone car industry.

3. Company Goals

a. Innovate a new way of water electrolysis using LCR (inductance-capacitor-resistor) circuit's resonance frequency properties.

b. Build a small-scale prototype of the drone car with the new LCR water electrolysis system; demonstrating feasibility.

4. Target Market

The same well-off individuals who could afford Teslas. Pilots who are tired of the restrictive regulations of FAA, and want to fly their personal aerial vehicles by relying on augmented reality and artificial intelligence for flight guidance rather than on human communication with ground control.

5. Industry

The industry is aerospace. More specifically, the personal aerial vehicle sector that includes companies like Ehang, Uber, and Skydrive. The industry is still infantile, so the outlook for Lorenz is the ability to shape how flying cars are integrated into society and the current infrastructure. Lorenz will take advantage of projected industry changes and trends by designing the standard of future drone car transportation; both the vehicle itself and the traffic infrastructure conventions.  Our competitors might get to market first, but first-mover advantage doesn't necessarily mean market dominance. Just look at what happened to Motorola when Apple innovated the cellphone.

6. Legal Structure

Lorenz is not yet incorporated, but will operate under either an S or C corp depending on the appropriate legal structure. There is currently only one owner: Piotr Rzymski and one co-owner Rachel Mahoney.

 

Products & Services

1. Product

The product Lorenz is selling is rocket-powered drone cars. The product is manufactured in a drone car plant. 

2. Special Benefits

The benefits of the Lorenz drone car over the competition's flying cars is that it runs on hydrogen gas, which is electrolyzed from water. The competition uses propellers to thrust their flying cars. Ours use rockets.

3. Unique Features

Our drone car also has better branding than most flying cars. For one, we do not call our vehicle a flying car or passenger drone. We call it a drone car, which is better. The other feature our drone car has is that it's a tilt-rotor, so the rocket cages turn dynamically according to the direction of the steering system.

4. Limits and Liabilities

Safety features; parachutes; HIPPA Law; surround cameras for live broadcast to SpaceX.

5. Production and Delivery

The drone car is delivered similar to how road vehicles today are delivered. More specifically, since Tesla is the most technologically advanced company, it would sort of be like that: ordered through an app on your phone. The price would be on the high-end of drone cars since it does not run on propellers, but rather rocket fuel. However, the goal would be to drive the price down as much as possible, and eventually get it into the $50-$100K range.

6. Suppliers

Probably would need help from SpaceX, NASA, National Science Foundation, Tesla, and other engineers from that caliber of expertise.

7. Intellectual Property and Special Permits

The intellectual property of the company is the LCR (inductor-capacitor-resistor) alternative water electrolysis method. The LCR method is still being researched and developed.

8. Product Description

The Lorenz drone car is a personal aerial vehicle that runs on water.

 

Marketing Plan

1. Market Research

Primary Research: Information I gathered myself throughout my 700 trips as an Uber driver and interviewing most of my passengers; either explicitly: asking questions, or implicitly: by observing behavior and ratings based on my performance and behavior, suggests that people want quick, reliable, safe, entertaining transportation.

Secondary Research: Information I gathered through online research, market analysis, and performance data from various transportation businesses such as Tesla, SpaceX, GM, Honda, Volkswagen, Audi, etc. suggests the people generally want an entertainment system; large subwoofers for example, surround sound speakers, and a guided travel plan,

marketflyingcars.JPG
market1.JPG

2. Barriers to Entry

High startup costs

High production costs

Finding qualified engineers

Need for specialized technology and patents

The way to overcome this is by developing the alternative water electrolysis system that converts water to hydrogen more efficiently.

3. Threats and Opportunities

The Federal Aviation Administration has a large legal footing over the airspace. In addition to that, there are military restrictions to certain zones, like airports, so flying cars might be restricted to certain zones of airspace. This is an opportunity to revisit current air traffic control systems and reinvent them by implementing new technologies like augmented reality and artificial intelligence.

SWOT Analysis

Score_SWOT_Analysis_1.png

4. Products Features and Benefits

The most important feature is that the Lorenz drone car runs on battery and water. This is special because water is one of the most abundant molecules on Earth. It is also a renewable resource.

The most important benefit of the Lorenz drone car is that it is a flying personal vehicle.

After-sale services

  • Product delivery

  • Warranty/guarantee

  • Service contracts

  • Refund policy

5. Target Customer

For consumers:

  • Age: 18-50

  • Sex: Unisex

  • Location: United States

  • Income: Top fifth

  • Occupation: Engineers, pilots, entrepreneurs, investors

  • Education level: College

6. Key competitors

Lorenz's competition includes any and all transportation companies ranging from personal ground vehicles, to public aerial buses. This includes Tesla, SpaceX, NASA, Uber, Ehang, Harley, and the list goes on. If there is a product out there that someone might choose to travel over a Lorenz drone car, then it's competition.

 

 

Competitive Analysis Worksheet

For each factor listed in the first column, assess whether you think it’s a strength or a weakness (S or W) for your business and for your competitors. Then rank how important each factor is to your target customer on a scale of 1 to 5 (1 = very important; 5 = not very important). Use this information to explain your competitive advantages and disadvantages.

Competition_anslysis.png

7. Positioning/Niche

Lorenz's unique segment in the market is the fact that it is the only flying car company to offer water as a fuel source to power rocket thrusters. Our design is unique, i.e. we use dynamic rocket cages for directional steering. Our steering system is also very reminding of traditional road vehicles.

8. How will we market our product

  • Online through influencers who bought the product.

  • Word-of-mouth:"Our target audience doesn't have time to watch TV."​

  • Business website

  • Social media marketing

  • Search engine optimization

  • Networking

  • Conferences

The image Lorenz projects is a dangerous persona, i.e. the logo is sharpred, and powerful. Kind of like Lamborghini and Ferrari. The design elements are pragmatic and realistic; built on pain, endurance, blood, sweat, tears, and evolution. These design elements will attract people who understand technology, and the target market will already know a thing or too about the dangers of flying cars.

9. Promotional Budget

Lorenz is not going to spend money on advertising; rather, all of its resources will go into researching and developing the technology. 

 

 

Marketing Expenses Strategy Chart

Marketing_Expenses_Strategy Chart.png
marketingbudget.png

10. Pricing

The average price of a flying car, passenger drone, or drone car on the market is between $200,000 and $300,000, so a Lorenz is priced at around $250,000.

  • Our prices are a bit higher than our competitors, like Ehang, who price their flying car at $200,000, because ours runs on water, which is more in demand than battery-powered propellers.

  • Lorenz is the only drone car on the market of its kind, which is why it differs from passenger drones, and other flying cars. It is called drone car for this reason.

Pricing Strategy Worksheet

Pricing Strategy Worksheet.png

11. Location or Proposed Location

  • Convenient location for customers

  • Adequate parking for employees and customers

  • Proximity to public transportation

12. Distribution Channels

  • Direct sales

  • Inside sales force

  • Ecommerce

13. 12-month sales forecast

Sales Forecast.png
 

Operational Plan

1. Production

The manufacturing part of the business is the most difficult part of the process. Assembling one prototype is relatively easy compared to building a Lorenz drone car plant that can assemble thousands of drone cars at scale. This type of plant would require billions of dollars, and thousands of engineers. Asking one person to calculate an exact estimate of a project of such magnitude will inevitably lead to errors.

2. Quality Control

How will Lorenz maintain consistency? Robots.

3. Location

The manufacturing plants are strategically located in California, Texas, and New York, and Nevada. Following the lead of Tesla, because this is most likely the company Lorenz will be relying on for engineering resources, so it's important to stay in close locale to this company.

4. Legal Environment

The legal environment will fall under corporate.

5. Personnel

Engineers, HR, legal.

6. Inventory

Raw materials, supplies, and finished products.

7. Suppliers

Tesla, SpaceX, and NASA.

8. Credit Policies

Yes, customers can use credit to purchase a drone car.

 

Management & Organization

1. Biographies

Piotr Rzymski is a designer and engineer. He has extensive experiencing managing teams and starting businesses. Lorenz is by far the biggest project he has undertaken, and getting this far alone deserves commendation. He is relentless in bringing drone cars into the forefront of everyone's imagination so that they can become a reality through the collective effort of all of us. His expertise is in marketing and attention grabbing with a background in engineering and design.

2. Gaps

Lorenz plans on filling gaps in management and experience by reaching out to experts in the field. Without being completely absorbed, the company wants to collaborate with companies like SpaceX and Tesla for guidance and engineering resources.

3. Advisors

Hasan Pride, SCORE mentor, banker

4. Organization Chart

Operations.png
 

Startup Expenses & Capitalization

 

Financial Plan

 

Appendices