MGMT20143 Startup Business Plan Report: Microphone Business

This report presents a detailed startup business plan for a microphone technology venture, likely based on the Nurapods business model. It begins with an evaluation of the business idea, including a SWOT analysis assessing strengths, weaknesses, opportunities, and threats. The report justifies the selection of the microphone business idea over alternatives, emphasizing its profitability and growth potential in the technology sector. It then identifies required improvements to the business model, such as enhancing product features, marketing strategies, and customer service. The report also acknowledges weaknesses and gaps in the business idea, particularly concerning health risks associated with headphone use and the need for a more flexible subscription model. A business model canvas is included, detailing cost structures, cash flow projections, and revenue streams. The cash flow analysis projects revenue and expenses over two years, including a break-even analysis. The report concludes with references and an appendix that contains key partners and activities. The student has contributed this report to Desklib, a platform providing students with AI-powered study tools.

Running head: Startup business plan
Web Start-up Business Plan
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Startup business plan
Table of Contents
Evaluation of Business Idea.............................................................................................................3
Selection of Business Idea...............................................................................................................4
Required Improvements...................................................................................................................5
Weakness and Gap in the Business Idea..........................................................................................6
Business Model Canvas...................................................................................................................7
Examination of cash flow projections:..........................................................................................10
References......................................................................................................................................12
Appendix........................................................................................................................................13

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Startup business plan
Evaluation of Business Idea
In the time of advancing civilization, the use of technology is common in all walk of life.
Creating a business that addresses a public's daily need is highly popular and profitable. The
business of microphone technology is on the rise (Burns, 2016).In the current scenario, a
business idea of microphone business is to be developed. To create a business, one needs to
develop an idea regarding the SWOT which needs to be analyzed.
SWOT analysis gives a deeper analysis of the organization standing position. Analysing
the strength, weakness, opportunity and threat of the organization helps in improving the quality
of the product and growth of the company. It is a type of birds eye view on the root of the
structure of organization.
Particulars Analysis
Strength The company’s ability to maintain cash flow is
excellent, and therefore, the cash position of the
company is deemed to be strong(Sammut‐
Bonnici & Galea, 2015).The company provides
high-level customer satisfaction. The old
customer gave positive feedback to the company.
Weakness Earphone business in the 2nd year of business
implantation does not show
unprecedenteddevelopment. There is not a
considerable rise in investors (Sammut‐Bonnici
& Galea, 2015).
Opportunities The opportunity for the new business is many. It
provides job opportunity for expert professional.
It also provides a trainingopportunity for the

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Startup business plan
staff.
Threats The product of the company is not wide-ranging.
Only a few designs are available as the business
is still in the starting stage (Narita et al., 2017).
There is another competitor of the business.
Selection of Business Idea
The business idea of Nurapods is selected as per the evaluation is done. The idea is
appropriately selected for the business idea regarding the microphone products is a developing
concept. Other business ideas that have been evaluated are found to be less profitable, and the
breakeven of the business needs much time. As the business is related to technology, the
customized sound system is the concern of the organization. The business idea is the highly
profitable business idea off the Nura is found justifiable as the company allows the customer to
be its subscriber of the company’s product with $10 per month minimum and $18 per month
maximum . The business idea selected from Nura involves a large number of consumer in less
time. In the drone technology business idea, product manufacturing is costly. The use of drone
technology can be done only in major sectors. The business idea that supported travelogue is an
exciting business idea to work with. But travelling is a sort of idea that does not impress
everyone. Therefore, in this context, the idea of dealing with technology business especially
related to headphone market is a highly profitable business idea which supports the effective
business strategy. The business idea shows unprecedented growth in the year 2018 in The USA,
where the earphone market registers an increase of USD 10.52 billion. The revenue generation of
the business idea is appreciable. In the era of advancing technology and growing public interest
in music activities allow the business to depict the best revenue generation ability. Among all the
evaluated business idea, the microphone technology business idea is an effective and profitable

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Startup business plan
business idea where the business opportunity is available. The manufacturing cost of the
microphone is lesser while the products bring good revenue when a well-made product with
better sound quality is sold at a higher price.
Required Improvements
The business idea is a successful idea of the market. The business idea flourished idea in
the USA and other countries. The product of the business idea is highly approved as
communication activity is the essential part of the organization. Still, there is little improvement
in a business idea. The business idea has depicted a successful application in the company
Nurapods, which had shown remarkable growth in the market. The Nurapods business idea
needs to focus on product creation with the latest technology. The requirement is there to
enhance the efficiency of the product (Koch, Ripley & McKay, 2018). Theefficiency of the
product will increase the number of consumers and create substantial goodwill for the
company.The business idea can be improved by adding additional value to the initial offers. The
marketing strategy to globalize the product needs to be improved for a larger purpose. The offer
in the business idea needs to be an irresistible offer for attracting a large consumer. The business
idea needs to develop a strategy to earn more profit than the expenses in manufacturing and
marketing of the product (Nwogugu, 2019). The trust of the customer needs to be increased. It
will encourage in the development and growth of the business. In the business idea, the products
are shipped to the customer with the third party delivery system. The business needs to enhance
and improve the shipment activities of the company. The customer needs to be offered more
variety of products with an improved feature. The industry needs to expand its operations, and its
products need to cover more activities of human life. The microphone was once loved by music

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Startup business plan
listeners only. Recently, the area of microphone usage expanded. The business model of the
business idea has a specific limitation as it offers a subscription to the consumer. The system of
the business idea needs to be updated and improved.
Weakness and Gap in the Business Idea
The study finds some loopholes and weakness in the business idea of Nurapods. In order
to assess the weakness of the business model, a study of the business model is to be done. It has
been found that the latest technology has been embedded and latest design of the microphone has
been developed. There are microphones which affect human ears. A large number of cases
regarding the hearing problem has been reported due to excess use of earphone. The use of
earphone also damaged the human ear(Biber et al., 2017). The model of business needs to
develop a product that will reduce the health risk. The business idea of Nurapods needs to adopt
corporate social responsibility in order to protect the environment and human lives too. The
monthly subscription system allows the consumer to update the earphone that will be latest. But
few customers will hesitate to pay such a large amount of money. Therefore, the monthly
subscription needs to allow some flexibility to develop an idea that will attract more customers
with ease. The higher initial fees will distract the customer. Rather than a monthly subscription, a
system of instalment needs to embed to develop a customer-friendly environment. The
company's sale and service support have little focus. While using such a product, the consumer
always reacquires customer support when technical faults come to the fore. The technical issues
need to be resolved with the help of the effective communicative technique of the business
model. The business idea has some gaps which need to be overcome by improving customer
support and products quality that will not affect consumer health.

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Startup business plan
Business Model Canvas
The business model in order to utilize for business start-up needs an amendment, and a
unique model is to be created to conduct the effective business operation. The business model
canvas of an organization needs to be framed, but the little amendment is accepted. The business
model of Nurapods consists of

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Startup business plan
Cost Structure: The primary structure of the cost of the company has been provided as follows:
Budget for 100 pieces of headphones
Particulars Amount
Pliers $14.00
soldering iron $19.00
side cutter $17.00
wire stripper $45.00
flexible wires $45.00
strong cable $35.00
ear phone pin $5.00
speakers (200) $50.00
Legal 40
Sales campaign 110
Ear phone pin 20
Total $400.00
Cost per unit (60% profit) [Best case] $6.40
Cost per unit (0% profit) [Worst case] $4.00
Cost structure: As per the cost structure, it can be seen that overall cost of producing 100
headphones will be as high as 400$. Considering the 60% profit from per headphone, cost of the
per piece will be 6.40$ in the best-case scenario. However, in case of the worst-case scenario,
there will be no super normal profit for the firm leading to selling of the product at incurred cost
of $4 per piece of Bluetooth headphone.

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Startup business plan
Cash Flow Projection for two years
Cash flow projection from 100 headphone sales for first two years
Particulars Year 1 Year 2
Cash received
Cash from sales $ 640.0 $ 704.0
Cash from receivables $ 200.0 $ 220.0
Cash from operations $ 840.0 $ 924.0
Additional cash received $ - $ -
Interest received $ - $ -
Sale of current assets $ - $ -
Sale of long-term assets $ - $ -
New investment received $ 500.00 $ 600.00
Cash received $ 1,340.0 $ 1,524.0
Cash spent on operation $ 400.00 $ 440.00
Taxes paid $ - $ -
Repayment of principal $ - $ -
payment of long-term liabilities $ - $ -
Purchase of currency assets $ - $ -
Dividendpaid $ - $ -
Total cash spent $ 400.00 $ 440.00
Net cash flow $ 940.00 $ 1,084.00
Cash balance $ 940.00 $ 2,024.00
Revenue Stream: The cash flow depicts considerable growth in the Cash in hand. It shows that
the business is profitable. The first-year cash in hand changed considerably well in the second
year (Wuet al., 2016). The company depicts strong financial support that will help in the
development of the business in the year to come. As the shareholders are paid dividend, the
company will indeed develop. The business is capable of making a revue of 640$ during the first

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Startup business plan
year and during second year it is projected that it will earn as high as 704$. Main source of the
cash flow of the firm is its operations and the investment in successive period.
Examination of cash flow projections:
Break-even analysis: As per the breakeven analysis it can be seen that the breakeven
point exists at the point of 124 unit of the Bluetooth headphone, where the price will be $496.55.
The breakeven point will be found at the end of the first year.

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Startup business plan
References
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Sammut‐Bonnici, T., & Galea, D. (2015). SWOT analysis. Wiley Encyclopedia of Management,
1-8.
Narita, N., Astika, A., Yapto, Y., & Koerniawaty, F. T. (2017). THE EVALUATION OF
PROMOTION STRATEGY OF MUSEUM BALI. Journal of Business on Hospitality and
Tourism, 2(1), 55-64.
Koch, G., Ripley, G., & McKay, D. (2018, July). The New Risk Perspective in Corrosion
Management. In ASME/USCG 2013 3rd Workshop on Marine Technology and Standards (pp.
131-140). American Society of Mechanical Engineers Digital Collection.
Nwogugu, M. I. (2019). On Franchise Royalty Rates, Franchise Fees and Incentive Effects.
In Complex Systems, Multi-Sided Incentives and Risk Perception in Companies (pp. 507-536).
Palgrave Macmillan, London.
Biber, E., Light, S. E., Ruhl, J. B., & Salzman, J. (2017). Regulating business innovation as
policy disruption: From the Model T to Airbnb. Vand. L., Rev., 70, 1561.
Serrat, O. (2017). Business model innovation. In Knowledge Solutions (pp. 499-507). Springer,
Singapore.
Wu, J., Al-Khateeb, F. B., Teng, J. T., & Cárdenas-Barrón, L. E. (2016). Inventory models for
deteriorating items with maximum lifetime under downstream partial trade credits to credit-risk
customers by discounted cash-flow analysis. International Journal of Production
Economics, 171, 105-115.

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Startup business plan
Appendix
Key
Partners
Amazon
Authorised
sellers for
marketing and
sales.
Australian Post
for deliveries.
Key
components
suppliers.
Key
Activities
Marketing the
product
Consistent
customer
service
Improvising
technology
Value
Propositions
Customized
headphones in
small
attractive,
fashionable
High level
customer
Satisfaction
Tesla Valves
Active Noise
Cancellation to
their
headphones
through
Software
Update
Customer
Relationships
Mailing for
updates for
subscribers
SoundStudio’s
for advertise,
sell, after sales
services
Customer
feedback from
website and
app
Customer
Segments
Music Lovers
with
personalised
Sound
Consumers
from
Fitness/Sports
gaming,
Music &
Instrumental,
Virtual Reality
Key
Resources
Highly
Passionate
Team
Availability of
company
technology in
the App for
user
convenience
otoacoustic
emissions
technology
Inova- patented
technology
Channels
Sound Studio’s
Official Website
Authorised
Sellers
Cost Structure
Administration, Research& Development,
Employee wages through their Funding
from Venture Capitalists.
Delivery and maintenance of their
company owned Sound Studio’s (sales
instore)
Revenue Streams
Monthly Subscriptions to gaining recurring
revenue, Instore Sounstudio’s sales
Company Website sales, Sales from
Authorised Sellers