A Water Meter Deleter enables the consumer to stop the incoming flow of water into house or business by pushing a button, or flicking a switch while indoors, thus activating a valve located on main waterline from water meter, before it enters building, executing immediate shutoff response. Plumbing disasters can be easily dealt with with the flick of a switch, and can be eliminated while your away from home by activating switch when you leave the home or business. You will never have to deal with the water meter ever again. This Business plan is intended for Mark Cuban. Mark, If you see this, you should realize what a wide open market there is for my product. There isn't any, other than mine. Nick

1. INNOVATIVE WATER CONCEPTS-WATER METER DELETER
NICK KONOVALSKI-OWNER
Innovative Water Concepts
710 Downing Dr.
Richardson, TX 75080
(972) 835-3091
nkk61@hotmail.com
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2. Table of Contents
1. INTRODUCTION TO PLAN...............................................................................1
2. SUMMARY OF PLAN.........................................................................................2
3. MISSION, STRATEGIES ETC............................................................................4
3.1. Vision......................................................................................................................................4
3.2. Mission...................................................................................................................................4
3.3. Values.....................................................................................................................................4
3.4. SWOTs....................................................................................................................................4
3.5. Strategies................................................................................................................................5
3.6. Goals/Targets.........................................................................................................................5
4. PRESENT STATUS............................................................................................6
4.1. Background ............................................................................................................................6
4.2. Progress to Date....................................................................................................................6
5. PRODUCT/SERVICE DESCRIPTIONS.............................................................7
5.1. General Descriptions.............................................................................................................7
5.2. Key Features..........................................................................................................................7
5.3. Pricing Plans..........................................................................................................................7
5.4. Competitors’ Offering............................................................................................................7
6. PROFILES OF TARGET MARKETS.................................................................8
6.1. General Background ..............................................................................................................8
6.1.1. Market 1...........................................................................................................................8
6.1.2. Market 2...........................................................................................................................8
6.1.3. Market 3...........................................................................................................................8
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3. 7. MARKETING STRATEGIES, SALES PLANS & PROJECTIONS....................9
7.1. Key Marketing Strategies......................................................................................................9
7.2. Marketing/Sales Plans & Resources....................................................................................9
8. TECHNOLOGY AND R&D...............................................................................10
8.1. Overview of Technology.....................................................................................................10
8.2. R&D Resources....................................................................................................................10
8.3. R&D Expense Projections...................................................................................................10
9. OPERATIONAL PLANS...................................................................................11
9.1. Locations & Facilities..........................................................................................................11
9.2. Operating Cost Projections................................................................................................11
9.2.1. Direct Labor....................................................................................................................11
9.2.2. Other Direct/Variable Costs............................................................................................11
10. MANAGEMENT & ADMINISTRATION..........................................................12
10.1. Management Structure......................................................................................................12
10.2. Key Management Profiles.................................................................................................12
10.3. Administration & Systems................................................................................................12
10.4. Head Count Projections....................................................................................................12
11. FINANCIAL PROJECTIONS.........................................................................13
11.1. Key Assumptions...............................................................................................................13
11.2. Income (P&L) Projections.................................................................................................13
12. FUNDING........................................................................................................14
12.1. Funding Requirements......................................................................................................14
13. CONCLUSION................................................................................................15
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5. Innovative Water Concepts
Business Plan
1. Introduction to Plan
Innovative Water Concepts provides an electronic whole-house rapid water shutoff system called
the Water Meter Deleter™. This system is designed for new construction or as a retro-fit into
existing construction. Innovative Water Concepts will focus on the residential construction
markets both nationally and internationally.
The objectives of Innovative Water Concepts are:
• Work with new construction general contractors to capture the new construction markets.
• Work with plumbers, plumber unions and plumbing distributors to introduce the water shutoff system
to existing homes.
• Gain endorsement of insurance companies for the product.
• Approach Home Security Stores with the product as a security solution for main water supply control.
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6. 2. Summary of Plan
Mission, Key Strategies & Goals
The mission of Innovative Water Concepts is to become the primary resource for residential and
commercial whole-building rapid water shutoff systems.
Present Status
Innovative Water Concepts is a general partnership between Nick Konovalski and his father, Al
Konovalski, as a silent partner. The focus of the company is the distribution at large quantities of
Water Meter Deleters. After further research, the possibility of starting up a home security
business is a strong future consideration. Home Security appears to be the best opportunity to
gain people’s interest in the new product. The main focus of the business will be on the
distribution of Water Meter Deleters in large quantities to either home builders or Home Security
Vendors.
Proposed Markets
The company plans to start locally and grow toward national and international distribution.
Marketing & Sales Plans
The company plans on getting insurance companies to endorse the product. The main targeted
customers will be Home Builders, Plumbing Distributors and Plumbing Supply Houses.
Home Security is a possibility for marketing as well. From the research done on the competitors,
it seems none of their actual shutoff valves can be put in the ground. It seems that a lot of the
competitor’s devices are sold and installed in a new home where the water service line is routed
for their accessibility. Home Security stores are really where these devices are selling. Since the
Innovative Water Concepts product is basically invisible, it could give the company an edge in
that respect. It seems like established neighborhoods would be more practical for the Water
Meter Deleter since there is no feasible way to put valve in garage as is done with the current
designs. It makes it clear in their manual that their valve cannot handle the elements of the
outside.
Operational & R&D Plans
Research and development of the Water Meter Deleter™ is complete and the product is
immediately available for large quantity sales and installations. A supplier for the valve
in large quantities at low cost has been identified.
Management
Innovative Water Concepts is a general partnership between Nick Konovalski and his father,
Al Konovalski, as a silent partner.
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7. Financial Projections
While long term financial projections have not been estimated, it is believed that the
necessary components for each Water Meter Deleter™ can be obtained for around
$200.00. Typical sales cost to builders may range between $400 - $600. Typical sales
and installation cost may range between $900 - $1800.
Sales to small builders, in lots of 100 units, would result in minimum net profits of
$20,000. Sales to large builders, in lots of 500 units, would result in minimum net
profits of $100,000.
Funding Proposals
Funding is currently sought for advertisement and marketing of the Water Meter
Deleter™. Costs to ramp up marketing and sales are estimated to range from about
$75,000 to about $100,000.
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8. 3. Mission, Strategies etc.
3.1. Vision
Innovative Water Concepts will become the leader in electronic main water shutoff systems. The
company will start off with local installations and grow with sales to builders and general
contractors. The company will gain a reputation for having a superior product and excellent
service.
3.2. Mission
To become the leader in electronic main water shutoff systems through competitive
pricing and excellent service.
3.3. Values
Innovative Water Concepts will be based on honesty and integrity, earning a reputation
for fair dealing and excellent service.
3.4. SWOTs
Internal External
Strengths: Opportunities:
• Licensed irrigator, familiar with plumbing • Insurance company endorsement
codes and industry needs
• Marketing through Home Security
• Low-cost source of the necessary Business
components has been identified
Weaknesses: Threats:
• Funding needed for proper advertising and • Other, different products on the
marketing market to shut off water
• •
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9. 3.5. Strategies
Innovative Water Concepts plans to market and sell the Water Meter Deleter™ to individuals, building
contractors, plumbers, plumber unions and plumbing distributors.
Marketing to new construction general contractors would help to capture the new construction markets,
while marketing to plumbers, plumber unions, plumbing distributors and home security stores would help
introduce the Water Meter Deleter™ to existing homes.
Endorsement from insurance companies may help marketing efforts.
Innovative Water Concepts could branch out into home security should that market generate significant
sales.
3.6. Goals/Targets
1-3 months : Individual unit sales to local builders and homeowners via word of mouth.
3-6 months : Gain endorsement from home insurance companies
3-12 months : Marketing to builders nationally as well as large home building companies
(such as Toll Brothers, K. Hovnanian, Pulte Homes, D.R. Horton, Lennar Corp., Centex
Corp., and the like).
Within 2 years : Sales of over 100,000 units.
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10. 4. Present Status
4.1. Background
The research and development of the Water Meter Deleter™ is complete and the device
has successfully been installed on residential homes. The device is covered by a pending
patent application filed in the United States Patent and Trademark Office in November
2010.
4.2. Progress to Date
Our company has sold and installed 25 Water Meter Deleters in the DFW area to this
date, and have sold 3 units over the internet from the demonstration video I posted on
YouTube.
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11. 5. Product/Service Descriptions
5.1. General Descriptions
The Water Meter Deleter™ is an electronic main water shutoff device.
5.2. Key Features
The Water Meter Deleter™ includes a shutoff valve that can be installed at various
locations, including underground on a water main before it enters the home. The valve
may be controlled be a switch that can be hidden from view, typically at a water tap in
the home for easy confirmation of water shutoff. The Water Meter Deleter™ will keep
the valve open in case of a power failure. The Water Meter Deleter™ can be activated to
turn off the main water supply when, for example, going on vacation or leaving the home
for any extended period of time, offering the homeowner peace of mind.
5.3. Pricing Plans
The Water Meter Deleter™ may be sold as a kit to home builders at a price point
between about $400 and about $500. The Water Meter Deleter™ may be installed
(retrofitted) in an existing home for a cost from about $900.00 to about $1700 depending
on the labor involved, as each installation is different.
5.4. Competitors’ Offering
Competitors offer various water shutoff and detection devices. Some devices are not
suitable for installation in an underground main water line. For example, some devices
require installation in a garage. Other devices may detect water leaks and activate a
valve. These devices require installation inside the home. The Water Meter Deleter™
may be installed outside the home and may be hidden from view, offering the
homeowner an undetectable device to shut off the main water supply to the home.
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12. 6. Profiles of Target Markets
6.1. General Background
6.1.1. Market 1
Local builders – Market limited with estimated sales from about 10 – 100 units a year.
6.1.2. Market 2
National builders – For new construction, sales could range in the thousands of units a
year.
6.1.3. Market 3
Home Security Companies – For existing construction, sales could range in the hundreds
of units a year.
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13. 7. Marketing Strategies, Sales Plans &
Projections
7.1. Key Marketing Strategies
1. Approach local builders to grow reputation
2. Approach insurance companies to gain endorsements
3. Once reputation is obtained, approach large, national builders for increased sales
7.2. Marketing/Sales Plans & Resources
As a licensed irrigator, the owner knows many local builders and general contractors.
Initial plans include marketing and sales to these local individuals to grow the business,
establish satisfied users, and gain an excellent reputation. The costs for this initial phase
requires funding.
Once a reputation is established, marketing to national builders may require travel,
demonstrations, product samples, brochures and the like.
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14. 8. Technology and R&D
8.1. Overview of Technology
Research and Development of the Water Meter Deleter™ is complete and no further
research expense is needed for the device.
The device is covered by one or more patent applications filed with the United States
Patent and Trademark Office.
8.2. R&D Resources
Any future development, for example, at the suggestion of customers, can be done by the
current company personnel with minimal additional resources.
The company plans to be responsive to customer’s suggestions and recommendations.
8.3. R&D Expense Projections
There are no current R&D expenses expected for the company.
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15. 9. Operational Plans
9.1. Locations & Facilities
The company is currently based in the State of Texas. A supplier for the valve used in
the Water Meter Deleter™ has been identified. A kit for the Water Meter Deleter™ can
be assembled in minimal manufacturing space. The contents of the kit can be customer
for builder’s needs. No future expansion is deemed necessary at this time, however,
space is readily available should company expansion require.
9.2. Operating Cost Projections
Operating costs are critical. Ordering the valves in higher quantity can lead to higher
profit margins. Therefore, operating capital may be needed for a large initial purchase of
the desired valve and associated hardware.
9.2.1. Direct Labor
Minimal additional labor would be needed, at least for the initial phases of the business.
Should shipment and sales of larger quantities of Water Meter Deleters™ occur,
additional labor for these tasks is readily available.
9.2.2. Other Direct/Variable Costs
Other costs include those costs conventional associated with operating a business, such as
computer, phone, accounting and other products and services.
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16. 10. Management & Administration
10.1.Management Structure
Innovative Water Concepts is a general partnership between Nick Konovalski and his father, Al
Konovalski, as a silent partner.
10.2.Key Management Profiles
Nick Konovalski is a licensed (State of Texas) irrigator #2559, and has over 30 years
experience as a landscape irrigator.
Al Konovalski is a licensed (State of Texas) irrigator #344, and is also a Realtor in the
State of Texas.
10.3.Administration & Systems
The Company’s equipment requirements consist primarily of computer and
communications tools. Because of the maintenance and upkeep involved in owning a
trencher, the company has decided to lease riding and walk behind trenchers, abandoning
this unneeded overhead
The Company has all of the following resources in
place:
Cell phone and computers, including desktop and laptop computers, as well as a high speed
internet provider.
10.4.Head Count Projections
Head Count is expected to remain unchanged for the upcoming year and may increase to
assist in shipping and sales as the business grows.
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17. 11. Financial Projections
11.1.Key Assumptions
Sales to local builders of 10-50 units a year, with a minimum net profit of $200 per
unit (with a maximum cost of goods of $200 per unit and a minimum sales price of
$400 per unit).
Sales to national builders, after the first year, of about 200 – 2000 per year.
11.2.Income (P&L) Projections
In the first full year, income is projected from about $20,000 to $65,000, with expenses
from about $10,000 to about $25,000.
With national builder sales and expansion from home security market sales, income in
the second year is projected from about $65,000 to $600,000, with expenses from about
$20,000 to about $300,000.
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18. 12. Funding
12.1.Funding Requirements
Innovative Water Concepts seeks funding to assist in their marketing , sales efforts, and
most of all, payroll, and to have a somewhat substantial amount of inventory. The
funding requirement initially ranges from about $100,000 to about $150,000 to cover
start-up costs. Without this funding, the company can still exist, however, growth may
be delayed. However, with local sales, the proceeds may be used to cover marketing
costs to larger, national home builders.
The funding will be paid back in residuals, either long term or short term, depending on
the amount funded.
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19. 13. Conclusion
Innovative Water Concepts has a patent pending product for an electronic main water
shutoff. The company has identified several approaches for the sales and marketing of
their product, and believes the approach outlined above permits a sustained and
continuous growth, approaching maximum sales within about 2 years.
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