Zeronoise
Executive Summary
Opportunity
Are you still worried about the noise outside the house? Do you still live in a house with poor sound insulation？Can't get a good night's sleep due to noise？Zeronoise is a young startup company, located in San Jose, California, that intends to produce and apply innovative soundproof technology for constructors in different types of buildings.
We are going to manufacture a special kind of soundproof material and teach constructors to apply it in their projects. In addition, our second line will be designed for personal use by customers who want to improve their already built apartments.
Market
Most people are often troubled by noise. Because of noise, we have various health problems, not only physical but also mental health problems, according to the Sleep Foundation. Our product will eliminate the noise as much as possible and give each user a comfortable and quiet environment.
Everyone who wants to have a comfortable life without any interruptions can be our customer. Zeronoise offers a simple solution to a very common problem of unwanted sounds, so our clients are people of all ages and genders. Our soundproof technology will satisfy the need for silence for babies and parents, for musicians and businesspersons who have to work from home, and even for students who want to study during the day and have a party during the night.
In addition, our innovation helps landlords by making their property more attractive for potential tenants, and they don’t need to resolve conflicts with neighbors because of the noise. Real estate developers can use zero-noise glass to create a better living and office environment.
Team
Zeronoise has a team of three people-Marina B , Fatima Farias, Julie Zhang.
Marina B. is Zeronoise‘s CEO. She is a senior architect who graduated from the University of California, Berkeley and is very knowledgeable about using different building materials. Fatima Farias is the Sales Manager. She used to work as a real estate agent for the largest real estate company in California and has a lot of contacts in real estate. She graduated from New York University with a major in marketing. Julie Zhang is the Administrator. She graduated from San Jose State University with a degree in administration management and is good at coordinating with other departments.
Financial Highlights
Our startup cost consists of:
Rent of the facility - $5,000 per month or $60,000 for the first year
Rent of the office - $3,000 per month or $36,000 for the first year
Equipment and installation - $100,000
Employees’ salary for the first 6 month will be $25 per hour. We are going to discuss the promotion after the first commercial result.
Recapping all this information, we need approximately $200,000 to get started, which we will get through a loan and venture capital.
The approximate cost of 1 sq.feet of our material includes raw material, producing and salary, is $10 for companies and $8 for personal use. We estimate to have a revenue of $6,600,000 from our construction product. The revenue from our personal use product depends on the demand in the stores and a lot of other factors, but we expect to gain at least $128,160,000 in the first year.
Company Description and Mission
Zeronoise is a young startup company, located in San Jose, California, that intends to produce and apply innovative soundproof technology for constructors in different types of buildings. We are going to manufacture a special kind of soundproof material and teach constructors to apply it in their projects. In addition, our second line will be designed for personal use by customers who want to improve their already built apartments.
Many people now have insomnia, depression and other problems, so an excellent sleeping environment is especially important. Zeronoise is going to improve this situation and make the lives of thousands of people much better, comfortable, and convenient than now. Our technology allows us to significantly reduce noise and sounds from outside and inside, and our materials are more environmentally friendly than traditional materials.
Mission Statement
We are determined to help every user have a quiet and comfortable environment.
Market Analysis
This pandemic has changed the way we look at our life, especially our home. Before that, people used to spend more time at work. Working from home and spending so much time in the same space, has made us worry more about the comfort of this space. According to the Sleep Foundation, noise has a major impact on sleep. Exposure to a lot of noise during sleep has immediate effects while sleeping, which leads to short-term problems the next day and, over time, can result in long-term physical and mental consequences.|
In addition, being quarantined for so long has changed consumer behavior. Paul Marsden, a consumer psychologist at the University of the Arts London, was quoted by CNBC as saying: "Buying panic can be understood as a game to meet our first fundamental psychological needs." These needs are autonomy or the need to feel in control of your actions. Our proposal is to allow you to control noise in your home, in your life! Zeronoise helps you to have the sound of the silence in your place.
At the moment we don’t have any direct competitors in our market field. While there are sound sponges, soundproof windows, and sound-blocking doors, there is nothing like Zeronoise in the market. The prices of our products will be similar to those of other companies, but our materials are more environmentally friendly and the product life will be longer. Because the material is environmentally friendly, it is very friendly for pregnant women and babies
Marketing Strategy
Everyone who wants to have a comfortable life without any interruptions can be our customer. Zeronoise offers a simple solution to a very common problem of unwanted sounds, so our clients are people of all ages and genders. Our soundproof technology will satisfy the need for silence for babies and parents, for musicians and businesspersons who have to work from home, and even for students who want to study during the day and have a party during the night. In addition, our innovation helps landlords by making their property more attractive for potential tenants, and they don’t need to resolve conflicts with neighbors because of the noise.
Constructors and constructing companies will likewise be interested in our products. We not only provide technology but also teach our consumers how to apply it. Improved with our material homes, apartments and offices become more saleable. Furthermore, the price of Zeronoise is affordable for a wide range of purchasers from small businesses to huge corporations.
Some of our main marketing strategies include:
For construction companies:
Direct letters and meetings with representatives;
Demonstration of our technology
Networking with persons who related to the construction business.
Participating in professional exhibitions (Build Expo USA, House Expo, ArchiExpo)
For personal use:
Contracts with big retailers (Costco, Target, Amazon)
Direct advertisement - brochures in mailboxes
Personal wholesale offers for landlords
Management Summary
Marina B. is Zeronoise's CEO. She is a senior architect who graduated from the University of California, Berkeley. She once worked for the largest construction company in Russia. She is very knowledgeable about using different building materials, so she is the main person in the development of zero-noise glass.
Fatima Farias - Sales Manager. Fatima is an excellent sales manager who used to work as a real estate agent for the largest real estate company in California. She has a lot of contacts in real estate. so she will manage Zeronoise’s marketing strategy. She graduated from New York University with a major in marketing.
Julie Zhang - Administrator. Julie graduated from San Jose State University with a degree in administration management. She is good at coordinating with other departments.So she will support Fatima with the marketing strategy and logistics. She has a strong sense of responsibility and will actively communicate with various departments when encountering various problems.
Financial Plan
We are going to produce our material by ourselves in partnership with chemical companies who will provide us raw material. We need a space for producing, a small space for an office, and a demonstration room. In this case the best option for us is to rent a part of a big manufacturing facility in North San Jose. This facility is already fitted for producing and has all the permissions. We just need to buy some specific equipment and install it. We are going to open a small office near this facility to have an opportunity to show our clients the production process and explain all the features.
Our startup cost consists of:
Rent of the facility - $5,000 per month or $60,000 for the first year
Rent of the office - $3,000 per month or $36,000 for the first year
Equipment and installation - $100,000
Employees’ salary for the first 6 month will be $25 per hour. We are going to discuss the promotion after the first commercial result. This money will be taken from our own savings.
Recapping all this information, we need a $200,000 bank loan.
The approximate cost of 1 sq.feet of our material includes raw material, producing and salary, is $10 for companies and $8 for personal use. We are planning to sign contracts with at least 3 companies this year. It means that we will produce around 220,000 sq.feets of Zeronoise for each building.
Our revenue estimations are the following:
Construction Use:
220,000*3 = 660,000 sq. feets per year.
660,000*$10 = $6,600,000
Most part of this income we are going to invest in the business expansion.
Personal Use:
The number of Costco members in 2019 was 98,000,000 people.
Target has around 80,000,000 members.
98,000,000+80,000,000 = 178,000,000 people
178,000,000/100*1 = 1,780,000 people is 1% of all the audience of these retailers.
One pack of our product consists of 9*9 feets sheet. It means that the cost of this pack will be 18 sq.feets*$8 = $144
If 1% of giant retailers customers buy at least one pack of our material, we will earn $256,320,000.
The revenue from personal use depends on the demand in the stores and a lot of other factors, but we expect to gain at least half of this number which is $128,160,000.
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