Assignment # 4 – A Business Plan
One Wing Wonder, LLC
One Wing Wonder, LLC was created by Kathleen Carpenter after having surgery to repair a nerve in the subjects left arm and was forced to keep the arm immobile for two weeks. During this time, the creator was given a standard arm sling to use that was both uncomfortable and eventually gave the subject a rash. There was also a problem of having to carry a purse in addition to the arm sling. In order to carry a purse, a woman would have to use the opposite arm, causing two straps to dig into a woman’s shoulder. Thus, One Wing Wonder was born.
One Wing Wonder is a company that provides arm slings that are ...view middle of the document...
157). The company will set up specifically as a limited liability company. This will allow all the members to protect each individual’s personal assets in case the business is not successful or the members are sued. All three members will have an equal amount of ownership.
The company will be incorporated in the state of Delaware for the tax benefits even though the company and manufacturing of the products will be done in Virginia. The cost of the incorporating is $250.00 (Delaware, n. d.). As found on the states website the “the corporation pays tax on business income at corporate tax rate; profits distributed to shareholders and are taxed at personal income tax rate” (Delaware, n. d.).
One Wing Wonder is not a medical product but an article of clothing and falls under the Apparel Manufacturing Industry. This industry takes already produced fabric from Textile Manufacturers and creates clothing and accessories. Despite advances in technology, this industry is still heavily reliant on skilled labor to design working patterns, cutting the fabric, and operating sewing machines. According to a study done by the U.S. Department of Labor in 2002, the Apparel Manufacturing industry is on the decline. The survey found that this was due in large part to labor being outsourced to cheaper labor sources such as Mexico and China (Allbusiness, 2002).
Statistics from the U.S. Department of Commerce and the Bureau of Labor Statistics (1997) list 5,117 textile complex companies and 6,134 plants. The gross sales for the cotton-fiber-textile apparel complex in 2000 were $58 billion, having fallen from $60.3 billion in 1999. Nevertheless, it was still the largest manufacturing employer in the U.S. economy, providing jobs for nearly 1.4 million workers in 1999. Employment in the textile complex in 1999 was made up as follows: 562,000 in textiles, 684,000 in apparels, 41,887 in man-made fibers, 62,579 wool growers, and 231,493 cotton growers. The textile and apparel companies have lost about 425,000 jobs since 1992.
According to Haisley (2002) “the largest manufacturing employers in ten key states are: North Carolina, California, Georgia, New York, South Carolina, Texas, Alabama, Pennsylvania, Virginia, and Tennessee.” Haisley (2002) goes on to say ”textile and apparel firms are often the primary employers in rural regions, although the apparel sector is also a major source of employment in metropolitan areas, particularly in the Middle Atlantic states and California.”
While the industry as a whole is declining, the niche market that One Wing Wonder is trying to capture is steady. According to the National Institute of Health’s website, 1.1 million or 0.39% of the population in the United States seeks out medical assistance for arm fractures. This does not include other medical reasons why a person would need to use an arm sling such as nerve damage or loss of use. This number also does not include U.S. services members that are...