The product being developed is software that will serve as an add-on. The add-on will be incorporated in any type of search engine that can turn text into video or audio and vice versa. The product will be referred to as the Search Engine Content Converter. Currently, content that is available on the internet is either in the form of texts, videos, or audio. The suggested add-on will be able to change any form of content into a preferred delivery style. Thus, people who do not have time to read can choose to either watch or hear the content. Having said so it is important to note that the product is good. One can argue that the product has several unique selling points (USPs). The first is the fact that it is convenient for all types of people. Castles, Rastle, and Nation (2018) confirm that reading culture is slowly deteriorating all over the world. More people prefer to either watch or listen to content as opposed to reading it.
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One of the reasons for choosing to set up and run the business is the passion I have for technology. This will be a sole proprietorship, as I will fully own the company. Ideally, it is unchallenging for me to register a sole proprietorship. Indeed, it is also easier for me to make decisions on the software, and the business in general, as a sole proprietor. I agree that there is a need for partnerships and the company can be changed to a partnership after the initial product has been developed and successfully launched into the market.
There is sufficient information available that can help support my business. For example, there is ample information on the legalities of registering a company. There are also several options in regards to financing the business. Mullen and Berrill (2017) explain that one of the most common ways of financing business in the US is through attracting an investor. Indeed, there are various types of investments that one can attract. First, approaching any of the search engines and pitching the idea to them is achievable. Secondly, there are angel investors, who often support a product or service that has just started (Collewaert & Manigart 2016). Additionally, there are investors that bring in different elements that can help the business such as advice and other forms of partnerships. Apart from these, I will also acquire money from family and friends for the initial creation of the software.
The business will require significant capital to start. The business will need a startup capital of approximately $4,500. Out of this, $1,000 is to be used for the business registration and acquisition of all relevant documents and permits. It is expected that the business will need approximately six months to break even. Additionally, it is expected that the business will start earning profit in the eighth month of the first year. Thus, by the end of the first year, it is expected that the company will have a revenue of $7,500 with a $2,000 profit margin.
Business Aims and Objectives
The business aims at easing consumer experience in search engine use by changing text, audio, and video formats as per the preferences of the user.
The business has several SMART objectives. SMART stands for specific, measurable, achievable, relevant, and time-bound (Bjerke & Renger 2017).
- To develop a light software add-on that can change audio, video, and text formats as per the preference of the user in two months.
- To develop software that can be incorporated into all types of search engines in two months.
- To do a test run of the software after development for one week before launch.
Long-term vision: The business seeks to enrich the consumer experience in search engine usage.
Short-term vision: To develop software that changes different types of content to a preferred format (audio, text, or visual).
To improve user interactivity and experience in search engine usage.
The Business Environment
Strengths: This section of the SWOT analysis looks into the advantages the business has over others. One of the strengths of the product is that it is applicable on all search engines. This is important as there are more than ten search engines used all over the world. By making the product universal, the business will be relevant to anyone using any type of search engine and ensure an impressive user experience as per the mission statement. This strength is critical, as it will ensure the wide usage of the software. Thus, lead to both popularity and profits.
Weaknesses: This section highlights the limitations of the product. One of the weaknesses of the product is that there is a lot of competition. Whereas there is software that can convert content to different preferred formats, there are few that enhance the client experience in search engine usage. This weakness can affect the business, as it will require heavy marketing, and the provision of quality products in order to attract a larger percentage of the target market. To respond to this, it is important to draft relevant marketing and advertising strategy.
Opportunities: The opportunities section looks into the prospects that the business can take advantage of to get ahead in the market. One can argue that the development of “local” search engines is a significant opportunity for the company. Initially, many countries relied on search engines offered by multinational companies such as Google and Yahoo. However, different techs have developed search engines in their own countries. To respond to this, it will be important for the business to seek partnerships from these “local” search engines as well as the “international” ones.
Threats: This section of the analysis discusses the challenges that might render the product and business irrelevant to the market. A significant threat is the hacking of the software. Just like other software, this product can be hacked. Case of attracting malware is a threat to the business, as the target audience will opt for other safer products. To resolve this, the software has to have an inbuilt antivirus that can ensure safety.
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Political: The political section of the PESTLE analysis looks into how the government might affect the business (Barik & Kumar 2018). One of the ways the government can do this is through the implementation of new taxation policies. Different states have different tax laws. The favorable response to this is the proper preparation for such policies through constant research and knowledge of taxation laws.
Economic: This part of the analysis investigates how different aspects of the economy such as inflation and interest rates can affect the business. Since the software is not free, the business will indeed be affected by inflation. To solve this, the company can offer a free or trial version that attracts money through advertisements so that it has two sources of revenue.
Social: The social element analyses the cultural aspects that can affect the business. There are no direct cultural limitations of the product. In fact, the product enhances modern culture by giving users their preferred formats during their search engine usage.
Technological: This aspect looks into how technology will affect the business. The fact that the product is technological makes this product relevant. To respond to this, the business has to keenly monitor technological advances in order to change their codes and procedures if need be, at any time.
Legal: The legal section highlights any laws that might affect the product or business. There are currently no new laws that will affect the business. However, the company has to be keen on bills and future laws that might affect the business.
Environmental: This element of the PESTLE analysis looks into how the ecological and environmental factors affect the product or business. There are no significant environmental concerns with the product and business.
The Marketing Section
Market segmentation was the appropriate market research approach for use. Both the company and the product will target all internet users. The target market takes advantage of search engines to get the content they want. Since the software is universal and can be used in all search engines, not much capital will be used for marketing purposes.
Social media consumer: The first typical consumer is the one that uses social media as his or her first search engine. Indeed, as Yang et al. (2016) explain, there are people who search for the content solely on social media. These consumers will only be attracted to the product if it is applicable on social media.
Web browser consumer: The second type of consumer is the web browser. This is the type of consumer that will use Google, Yahoo, Bing, and similar search engines to look for content. These consumers will be the primary target audience for the company.
The marketing mix offers 4 Ps that are to be considered when developing a marketing strategy. The 4Ps stand for product, price, place, and promotion.
Product: The product is good in the form of a software add-on. The software will offer users the ability to change the format of the content they are interested in whenever they want. For instance, those that are busy and cannot read the content can either use the audio or video formats without necessarily going to YouTube. The product will have two versions. The free version will contain advertisements while the trial version will give the user a one-month free usage before they are charged on a monthly, quarterly, bi-annually, or annually basis.
Pricing: Initially, the pricing for marketing penetration will be used to attract as many consumers as possible (Jervey 2015). This approach will ensure that the product is very affordable although this may change with time. Initially, the software will only cost $2.50.
Place: The product will be available online. The users will have to log in to the company website to download the add-on. The consumers can choose to download a free or a trial version.
Promotion: The software will be promoted using online platforms. Digital advertising is easier and reaches more people and it is for this reason that it is deemed appropriate. The free and trial versions available are part of the sales promotion to attract as many consumers as possible.
Unique Selling Points
There are several unique things that the product provides the consumer through the 4Ps (Baker 2018). One is the fact that the add-on has both a free and a trial version that the consumer can pick. Additionally, the premium product is very affordable compared to other competitors in the market. One of the benefits the consumers will get is the reduction of the price for a premium product. Secondly, the consumer will also benefit from the ease of access to the product as it can be easily downloaded online.
The Finance Section
As stated previously, the business will require a starting capital of $4,500. $1,000 of the amount will be used for registering the business and getting all legal documents. To start the business, I will hire someone to develop the software. This person will be paid a salary of $800 for the job. Also, I will buy a new computer that can hold the software well as it is being developed. The computer is expected to cost approximately $300. I will also rent out an office space for working and this is expected to cost about $500. $1,000 will be invested in marketing and advertising after the product is launched. $500 will be used during the testing period. The remaining $400 will be highlighted as miscellaneous.
I will get the initial funding from personal savings, family, and friends. However, I will need an angel investor to mentor and provide additional financial support. I will use referrals and the internet to get the ideal angel investor (Harrison et al. 2018). It is expected that the business will have a revenue of $7,500 per month by the end of Year 1. This projection is expected to increase steadily in the next few years. There is no scientific data that can support the financials stated. However, estimates have been made from the development of previous programs and future projections.
In conclusion, there is no academic research that supports the data given in this presentation. However, the financial projections have been calculated carefully bearing in mind the pricing, inflation rates, and the demand of the product. The product that will be developed is a software add-on that can be installed in all types of search engines. The product will enhance user engagement, as it provides the option of changing the content to any form that the user desires. For example, it can change the text into audio or video. It is important to note that the product will have both free and trial versions. The free version will have advertisements giving the company another source of revenue. The segregated market research, SWOT, and PESTLE analyses confirm that the product can be successful once launched. One of the reasons the product will be successful is the fact that it can be incorporated into all search engines.
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