La Musique: Business Plan for LP 2 CD Converter Sound Device Startup

The business plan outlines the launch of 'La Musique', a startup focused on designing and selling the LP 2 CD converter, a device that converts vinyl records to CDs without a computer. The plan details the business idea, mission, and vision, emphasizing market demand and differentiation. It includes a Porter's five forces analysis, SWOT analysis, and a description of the company's matrix structure. The plan also covers the product's features, benefits, marketing strategy, sales, and distribution channels. The target market includes music lovers, with a focus on both individual and corporate customers. The marketing plan highlights the use of social media. The plan describes the team structure, strategic group mapping, and the product's features, benefits, and sales and distribution strategies. The company aims to capitalize on the nostalgia for vinyl records while offering a convenient digital conversion solution.

Business Plan
“La musique: A place to get unique sound devices”
New product: LP 2 CD
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THE BUSINESS IDEA
The business idea herewith is of designing and selling LP 2 CD which is a device that is
used for converting vinyl records to CDs with none of the hassle of connecting a computer. The
proposed business is fully focused on fulfilling the demands of market regarding changing vinyl
into the digital age. The mission of business is to design a LP 2 CD converter Box that can easily
convert vinyl records to CDs without connecting it with computer. The name of new business
will be “la musique: A place to get unique sound devices”.
Vision: To become the best music equipment provider
Mission: The mission of new business is to fulfil the needs of society regarding technology
Porter’s five forces and new business
The new business is going to be affected by five forces of the market as there are some
force in the market that may affects the market. In the market, there are fewer substitutes for the
product that is going to be designed by the new venture (Wikström, 2013). From, this point of
view, it can be said that demand of products is increased as supply of LP 2 CD is limited. The
bargaining power of customers focuses that there is a huge switching costs of changing from one
supplier to another. The threat of new entrance for this new business is too low as expertise is
required for conducting successful operation (Analysis of Industry attractiveness - Porter's five
forces in UK music Industry, 2016). Huge investment are required to enter in the market while
accessing to resources & distribution network which is difficult to enter that shows low threat of
new entrants. In respect to the industry rivalry, it could be said that the product differentiation
can overcome the threat of new business for entering into music industry of UK which is already
having a fierce competition. The new business is company with a differentiation in the form of
coming up with LP 2 CD formats of music that converts vinyl records to CDs.
One of the main reasons behind introduction of this product in the market is that it is
possible to convert recording into digital format such as MP3 etc. Further, it allows changing the
format of the recording in appropriate manner and is convenient in every possible manner.
Customers are allowed to capture all the nostalgia and the happiest moments can be easily shared
with family members and other individuals associated with person. Customers who have
purchased this product have enjoyed its remarkable value which generally exceeds its price. In
order to use this product it is necessary to have any type of recording that can be converted into
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digital source such as MP3 etc. Therefore, through this tool LP2 is changed into MP3 (NUMARK
INTRODUCES HIGH RESOLUTION VINYL-TO-CD AND DIGITAL MEDIA SYSTEM, LP 2
CD, 2008).
SWOT analysis of New Business
The new venture is going to manufacture and sale LP 2 CD which is a device which is a
device that converts vinyl records to CDs without connecting it with a computer. The biggest
strength of new business is that the quality of product is going to be the best as compared to
market substitutes. Product differentiation is one of the major strengths where products of
business are different from its competitors. There are moderate prices as compared with other
companies in the market. However, the huge cost in the initial years can be a threat for the
business from outside market. The sound knowledge of technology and experienced technical
staff is strength of business. The changing phase of technology can be a threat of business in the
long run; however, the business can overcome this threat by updating itself with the technology
(Digital Conversion Turntable with Built-in CD Recorder, 2016). The weaknesses of new
business are the changing trend of music industry and the deficiencies of business. The number
of competitors currently in the market & their strengths can also be weakness as well as threats
for new business.
One of the major threats to new business is rise in competition level where business will
operate in the market where other companies are also present. Therefore, this challenge will
adversely affect the business. Further, strong brand image of other companies is also one of the
main threats. Competition from firms is indulged into practices of mp3 conversion.
SWOT analysis of Numark
Strengths
Ability to respond towards need of customers
Strong reputation in the market
Lower overheads where it is possible to deliver
good value to the customers
Weaknesses
Little market presence
Small staff
Unreliable cash flow
Opportunities
Expanding business sector
Threats
Introduction of new technology may affect
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Competitors are slow to adopt technology
Local government is interested in promoting
small businesses
entire market
Changing need and requirement of customers
in the market
OWNERSHIP & COMPANY STRUCTURE
The new business is going to have a matrix structure which will allow company to use
resources in an efficient, however, experts and equipment can be shared across department. The
manufacturing department of the business will be located in Science Park as the business is
somewhat high- tech (Bryman and Bell, 2015). In addition to that, it will be located at next to
major transport nodes as it is also involved in distribution activities. The manufactured products
will be distributed to sales location; however, business is going to sell it online.
THE TEAM
The proposed business is going to have a team of people who will make their efforts to
successfully commencing the business while earning good profits. The leadership role will be
played by the manager of original inventors & entrepreneurs. For having a professional hep
technical staff will be appointed. There will be an owner who will take the position of manger in
the business. There will be two professional who are expertise in development of musical
equipments. Rest 5 supporting staff will be there.
Team member
Promoter: main responsibility of individual will be to promote products of the business
in the market. Further, main stress will be on identifying the individuals who are interested in
purchasing products of company and they will be offered same type of product in the market.
Quality analyst: Main responsibility of individual will be to ensure that LP 2 CD product
is of acceptable quality. Further, individual will ensure that tools adopted for enhancing quality
are appropriate and can provide long term benefits to the business.
Coordinator: Main duty of individual will be to coordinate all the key activities of the
business. Further, person acting as coordinator will ensure where activities such as marketing,
production etc are carried out as per plan prepared or not.
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Therefore, these are some of the key individuals who have been appointed by new
business and they have proper knowledge in relation with the music industry. Further, they are
highly skilled along with knowledgeable so that business can obtain direct benefits with the help
of this.
Strategic group mapping
High
Low
Low High
Above shown is the strategic group mapping where major players operating in the market
offering LP2 MP3 converter have been shown. Further, it highlights overall position of different
companies in the market where companies such as Numark, Ion, Lenovo etc are popular in the
market and they are well known for range of products being offered. Apart from this, product of
every company is different from others in the market. Moreover, to deal with all these players in
the market new business is focusing on quality and other attributes in the market so that situation
linked with rise in competition level can be easily tackled and in turn it acts as development tool
for the enterprise.
THE PRODUCT
The product which is going to be offered by a new venture is a LP 2 CD which is a
device used for converting vinyl records to CDs with none of the hassle of connecting a
computer. This product is coming with a high tech technology that is going to an easiest way to
convert vinyl records to CDs. The main feature of the product is that it turns individual records
into CDs where no computer us required.
The main features of the products are as follows :
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Numar
kAMOS
USB
Lenovo
Blackstar
Ion
Vinyl

 The main feature of this product is that it includes EZ Vinyl/Tape Converter software for
hassle-Free computer recording and conversion to MP3*
 Use of this device allows individual to built-in CD recorder copies music to CDs from
vinyl
 The customers can copy entire albums or make own custom mix CDs
 This device can be connected to PC or Mac for converting vinyl into MP3's*
 The device can works stand-alone as well as it can be connected to computer
 The device can be further connected with home stereo system for using it as a traditional
record player (Digital Conversion Turntable with Built-in CD Recorder. 2016)
 No drivers are required to operate it
Benefits of product
The product allows customers to make a quick convert into Vinyl into CDs. The major
benefit of using this device is customers can listen music in the car, at home, on computer, or any
place with a CD player (Galbraith, 2016). One another benefit of using record is that LP 2 CD
and record is useful in making one or more CD copies in the internal CD burner. The customers
can easily connect it to computer and can easily transfer music to their iTunes, iPod, or MP3*
player. The product comes with software for fast, easy importing of voices into iTunes library
(Digital Conversion Turntable with Built-in CD Recorder. 2016). The product also includes EZ
Vinyl/Tape Converter software which provides an easier way to record and convert vinyl directly
to iTunes. The all benefits of product can be said as now customers can listen to music in the
car, at home, on computer, or any place with a standard CD player. The life of products is
expected to be lifetime and thus is available at affordable prices.
THE MARKETING PLAN
The marketing plan of new business is going to include primary customer segment(s) the
channel of reaching customers as well as media etc. The propped business is going to explain
how technology has pushed the LP (vinyl) into the shade. There are two kinds of customers for
new business such as individual and corporate. Corporate customers are online & offline retailers
who purchase devices in bulk and individual customers are music listeners who purchase music
either online or offline. The target market of business will be the music lovers, singers etc.
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Young customers have been targeted for the business. From the investigation, it has been found
that males between 40 and 60 years of age still treasure their LP’s, nonetheless, P’s are relatively
rarely played in a normal house hold, partly (Blank, 2013). The young generation is targeted for
a new product of a new business. To promote the products, social media is going to be used.
Hence, the social media platforms are the place where from the target segment will be reached.
The marketing department will be responsible for arranging all things for making a string
promotional plan.
SALES & DISTRIBUTION
While establishment of new business it is necessarily required to take decisions in
relation with the sales and distribution. La Musique will sell LP 2 CD product with the help of its
company operated outlet. This will be one of the major sources of attraction for new business.
Further, selling will take place with the help of outlet which will be located outside the
manufacturing unit and this will assist in accomplishing the sales target of the business in most
effective manner. Apart from this, the present distribution source adopted will be convenient for
customers where they can easily approach outlet of the enterprise and in turn can purchase the
products as per their requirement. Moreover, full information about the product named LP 2 CD
will be provided to the target market with the help of physical store of business and this will
enhance sales volume of the organization. On the other hand, after considering the response of
the target market in relation with the product LP 2 CD will be offered through online sources
also where company will use its own website for satisfying requirement of the target market.
Further, this will enhance satisfaction level of the target market and business can easily sustain in
the market for longer period of time. Sales and distribution activities will be carried out with the
help of proper plan where business will decide in advance how many units of products have to be
sold in starting through effective marketing and this will allow in grabbing market opportunities
(NUMARK INTRODUCES HIGH RESOLUTION VINYL-TO-CD AND DIGITAL MEDIA
SYSTEM, LP 2 CD, 2008). Further, for effective distribution skilled workforce will be employed
and support of such individuals will enhance sales volume of the enterprise. Highlighting the
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unique attributes of the product will assist in distribution and this will provide reason to
customers so that they can purchase LP 2 CD product.
COMPETITORS
One of the major competitors of new business named La Musique is Numark where
organization is indulged into practices of manufacturing DJ accessories and audio equipments.
Generally business deals in all type of equipments which are used in the field of music. For more
than 40 years company has combined understanding of DJ’s needs with cutting edge
technologies with the motive to develop products that continually lead the way (NUMARK
INTRODUCES HIGH RESOLUTION VINYL-TO-CD AND DIGITAL MEDIA SYSTEM, LP 2
CD, 2008). Business is highly innovative and introduces new product as per need and
requirement of the target market.
Another major competitor of business is ION networks where company is one of the most
trusted names in remote device management (LP 2 CD™, 2015). More than half of the world’s
top telecommunication businesses depend on ION technology. Organization is well known in the
market for range of products it delivers to its target market and they are highly unique as
compared with other brands in the market.
So, Numark and ION networks are the two major competitors of the new business where
business has to ensure well in advance the range of products offered by company along with the
activities carried out. By knowing the key practices of competitors it is possible for business to
introduce more effective strategies which can enhance overall performance in the market. This
will surely allow business in gaining competitive advantage and can act as development tool
also. Apart from this, most important task is to identify the prices at which competitors are
offering products and the other unique attributes in the product. Same attributes can be
considered in the development of owns product through which business can easily grab large
number of opportunities in the market. Further, presence of effective strategies will support in
near business also as it is possible that new businesses may set up business in this market and
due to this reason company has to deal with sustainability issues. So, in this way by taking
corrective actions for dealing with competition business can operate efficiently. Main strengths
of the two competitors is that they are already well established in the market and products sold
by them are well known by customers. Further, this will be one of the main challenges for new
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business as its brand awareness is less as compared with its competitors. In starting business will
not be able to obtain benefit in relation with high brand awareness which can be its strength. In
short, business has to consider key strength of its competitors and this can assist in performing
better in the market.
CUSTOMERS
Main target market of La Musique will be youngsters and other type of individuals who
are music lover etc. Further, it is well known fact that product such as LP 2 CD is purchased only
by individuals who are music lovers and by targeting them it is possible for new business to
enhance overall sales. This product is convenient for singers who can easily convert their
recorded voice into MP3 format and this will provide them remarkable experience as expected.
Apart from this, customers will be provided proper information in relation with the product
manufactured by company as this will generate trust and confidence in favour of company.
Generally every type of individual living in UK listens to music and there is no such fixed
criteria present that only music lovers will purchase this product. Therefore, business will focus
on each and every type of individual. Moreover, business has carried out proper market research
through which it has been identified that customers prefer to purchase LP 2 CD as a product and
this tool is convenient for them. Apart from this, personal recording of an individual can be
converted into digital media. In short, all the features of this product are unique and highly
advanced too. All the unique features of product such as copies entire album, builts in CD
recorder copies music to CDs, can be connected to home stereo system etc. By highlighting all
these features it is possible to attract customers in the market. Apart from this, corporate
customers are also present which involves music stores who purchase this product in bulk and
due to this reason business will also focus on corporate customers as they can provide good
market to La Musique. This can enhance market performance of the business.
THE BUDGET
The feasibility of business depends on the financial plan, for the here proposed businesses
is included with a budget.
Owner's capital £100000
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Bank Loan £60,000.00
Total capital £40,000.00
The budget allocated on activities including expenses of business is explained in the
following points.
Budget
Activities Budget (£)
Patent charge £2000
Legal and Registration Charges £1000
Market Research £20000
Marketing and promotional £1000
Utilities (Electricity & Phone) £5000
Insurance £1000
Salaries to technical and other staff £100000
Miscellaneous Expenses £600
Website development and maintenance charges £2000
From the above table, it can be assessed that the business is going to pay patent changes
of £2000. In addition to that, legal and registration charges will be £2000 for the business. The
expenses for the market research will be £20000, along with this business is going to make use
of£1000 for marketing and promotional expenses. The technical and other staff will be paid
salaries of £100000 and the miscellaneous expenses will be £600. The budget allocated to
website development and maintenance charges is £2000.
INVESTMENT NEEDS
Establishment of any type of manufacturing unit requires high investment and in case of
present business also it is applicable. Overall amount required for setting up this business is
£100,000 where with the help of this amount it is possible to recover all the major expenses.
Further, expenditure level is quite high where company has to allocate funds in different
activities. Proper management of financial resources is needed so that business can easily focus
on its aims and objectives. Finance will be obtained with the help of two main sources which are
owner’s capital and bank loan. Amount of £60,000.00 will be taken as bank loan and £40,000.00
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as owner’s capital which will be the major sources of income for enterprise. Further, through
these sources, it will become possible for enterprise to satisfy its need and in turn manufacturing
operations can be carried out in effective manner. Moreover, this investment amount will be
utilized in various activities where major expenses can be recovered easily which is beneficial
for the organization. Bank loan as a source has also been considered as through this it will
become possible for enterprise to deal with the situation such as inadequacy of finance which is
generally considered to be unfavourable for business.
ANY BARRIERS
In order to operate efficiently in the market it is necessary for new business to take
corrective so as to deal with barriers being faced at the time of conducting operations. La
Musique will face large number of challenges in the market where competition is the major one.
Large numbers of businesses are already operating in the music market and they are offering
products such as LP 2 CD. So, substitutes of products present in the market will act as hurdle due
to which it will become difficult for business to sustain in the market. Apart from this, customers
are having many substitutes present due to which they can purchase product of any brand.
Business has to deal with this barrier in appropriate manner so that it may not influence its
overall strength in the market.
Technology failure is another type of barrier which business can face while operating in
the market. Further, it is well known fact that for efficient production business has to employ
advanced tools and in some case it is possible that such techniques are not undertaken for
producing the LP 2 CD product. Therefore, failure of technology can also be one of the major
barriers which can adversely influence the business productivity. Apart from this, company has
to indulge into practices of delivering proper training so that employees can work with advanced
tools.
Ineffective management of financial resources can also be major barrier for the business
where it is possible that organization is not able to manage finance required for carrying out
overall operations. This will prevent business from accomplishing its overall aims and
objectives. Therefore, introduction of proper plan for management of finance is must for
business and can assist in recovering all the major expenses.
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PROFIT & EXIT
Financial plan
Assumptions:
Start-up capital: In order to start the proposed business, an investment of £100000 is
going to be made in which owner’s personal funds will be of £40000, however, other source of
finance will be £60000 that are taken from bank loan.
 The revenue will increase by 10% p.a.
 Cost of sales of business will be 40%
 The rate of interest on loan will be 7.83% *(As per UK base rate)
 Tax rate will be of 10% of profits
 Utilities expenses (electricity, telephone etc.) are going to be increased by 10% p.a.
 Insurance of service vehicle is £600 per annum
 Marketing and promotional will be £1000 in all the years
 Salary paid to technical staff will be increased by 7% in upcoming years
 The loan will be repaid within 3 years of business
 Service vehicle maintenance charges are going to be £5000 p.a.
 Website development and maintenance charges £2000 p.a.
 Miscellaneous expenses are £600 that will increase 10% p.a.
Revenue projection
Year 1 (£) Year 2(£) Year 3(£)
Number of LD
2 CD sold
3000 3300 3630
Average price 500 550 605
Revenues 1500000 1815000 2196150
The average price of the product is expected to be £500 which is further increased by
10%. On the basis of financial assumption, it has been noticed that business is going to earn
revenues of £1500000 in the first year of business and the expenses are going to be increased by
the rate of 10% in upcoming years. In addition to that the business is having revenues of
£1815000 and £2196150 in upcoming years.
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