OFFICIAL BUSINESS PLAN OF THE SOUNDBREAKER ORGANIZATION

SOUNDBREAKER
BUSINESS PLAN

Soundbreaker
January 26th, 2017

Table of Contents
Confidentiality Agreement 2
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1. Executive Summary 3

2. Company Description 4

3. Market Analysis 7

4. Product 9
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided in this
business plan is confidential; therefore, the reader agrees not to disclose it
without the express written permission of Soundbreaker.

It is acknowledged by the reader that information to be furnished in this

business plan is in all respects confidential in nature, other than information
that is in the public domain through other means, and that any disclosure or
use of this confidential information by the reader may cause serious harm or
damage to Soundbreaker.

Upon request, this document is to be immediately returned to Soundbreaker.

Signature

Name (printed)

Date

This is a business plan. It does not imply offering of securities.

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1. Executive Summary
In certain instances, noise can be profoundly serene. When those
invisible, speedy vibrations hit our ears and produce words or peace and
comfort, it reminds us of the true value of being human. When they produce
flowing arpeggios and fugues, it takes us to a place more divine than the one
we are normally confined to. On the other hand, however, they can be of
great detriment as well. From shrill to painfully sonorous, certain sounds are
best avoided - yet sometimes we must grit our teeth and deal with them, out
of lack of escapes. The headphone and earphone market offers a solution to
such unpleasant noises, and consumers are happy to indulge: the market is
planned to top $15 billion in the next decade1.
However, headphones are much like children who need it their way.
Their voices raise in proportion to the contending adult, and eventually both
sides are focused on drowning each other out rather than finding a solution
to their problem. Likewise, headphones simply drown out outside noises
rather than canceling them out and squashing the heart of the problem.
Even when one believes they are comfortable with headphones in their ears,
they cant help but disdain at the still significant amount of ambient noise
they continue to be plagued by.
Soundbreaker offers a new solution to the problem of unwanted noise.
Instead of taking the traditional approach and countering noise with louder
noise, Soundbreakers product uses the physics of sound, and the concept of
destructive interference in particular, to make the users day free of
detrimental din. The device emits noise of a frequency such that it cancels
out the noise of whatever is in the background, leaving the effect that little
noise is present at all.
Under the leadership of Nailah Hutchinson and Madison Mickey,
Soundbreaker resolves to bring its product to market and abate the issue of
aggravating noise. Through a strong digital presence, with an informative
website and user-friendly online store as the flagship, Soundbreaker projects
to have its product for sale by January 2018, after demonstrating its
feasibility with solid science.

1 https://www.grandviewresearch.com/press-release/global-earphones-headphones-market
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2.Company Description
Mission Statement

Soundbreaker is dedicated to relieving the noise-induced stress and other ill

health effects that accompany regular presence in a shrill, noisy
environment.

Management

The heads of management of our company are Nailah Hutchinson and

Madison Mickey. They assign tasks to all of the team members for the team
to complete.

Advisors

The principal advisor of Soundbreaker is Brian MacWilliams. He provides both

conceptual and managerial advice.

Products and services

Soundbreaker is the namesake of both the product and company that

produces it. Features include:
Sound-cancelling technology to reduce impact of hurtful/unpleasant noises
Portable, no bigger than a bluetooth speaker
Easy to handle

Long Term Aim of the Business

The goal of Soundbreaker is to innovate on already-existing systems for the

cancellation of noise, which are primarily, at present, in the form of
headphones. Noise elimination is necessary for a large number of people
who, under a wide variety of circumstances, are exposed to uncomfortable
levels of types of noises. Since noise is ubiquitous, noise-cancelling
headphones are already a popular market; Soundbreaker looks to use that
already existing market to its advantage. Soundbreaker evades a
disadvantage with headphones in that headphones can only be used by one
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person at a time, while Soundbreaker can reach a room full of people at once
and is consequently more efficient.

Objectives

I. Initial objectives
Since the focus of the business is a product, the most salient objective in the
near-term for Soundbreaker is demonstrating the feasibility, in scientific
terms, of the product. A description of how the product works, based upon
the physics of sound, suffices for this purpose and is included later in this
business plan. Then, of course, this information needs to be disseminated via
our website and other digital platforms to raise consumer awareness and
gain customers. Finally, a functioning online store needs to be developed,
allowing the product to be sold. In light of these broad objectives, it is clear
that a website is, too, an important short term goal. In the information age,
any business that wishes to make a name for itself needs a functioning
online presence. In the longer short term, if you will - perhaps several
months after gaining followers via word of mouth and the website - a
functioning social media presence must be developed to further spread
information regarding Soundbreaker. On the financial side, this business plan
constitutes the short term objective for Soundbreaker. Here we will discuss
the pecuniary matters relating to the business, including pricing, expenses,
and projections. These short-term goals should all be accomplished within six
months of the founding of the business, i.e. by July 2017. In summary, the
primary initial objectives of the business all relate to getting our feet of the
ground, to quote the maxim.

II. Long-term objectives

Let us for a moment assume that Soundbreaker has accomplished its initial
objectives: gaining an online presence, developing a conceptual prototype,
and marketing via social media. What comes next? Obviously, it is important
to actually build a physical prototype, test it, and make improvements as
necessary. This should be done by January 2018. As the business grows,
inventory and production - capital - needs to be acquired as necessary, which
will take place over the following several years. Essentially, in the long term
Soundbreaker will be focused on expanding the business and its profits. As
discussed in Long Term Aim of the Business, Soundbreakers eventual goal
is to be a serious competitor in the noise cancellation market, and set a new
standard for noise cancellation products.
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SWOT Analysis

Strengths:
No direct competitors
Can reach multiple people at once
Provides a simple solution to a common problem people have
Original (concept, as manifested here, is not and has never been present on
the market)
Lightweight
Portable
Easy to use/handle

Weaknesses:
Could be costly (in production as well as purchasing)
Mechanics of noise-cancelling headphones seems complicated to replicate
for high schoolers

Opportunities:
Market (for noise-cancelling headphones) is large

Threats:
Dominance of already existing noise-cancelling technology companies
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3. Market Analysis
I. Discussion of the Target Market
By virtue of Soundbreakers function, any demographic that suffers from
excessive noise is included in the target market. However, despite this
definitions convenience, a target market cannot be defined so ambiguously,
for two reasons. One, Soundbreaker needs to have a focused advertising
and marketing campaign, and it is not enough to say we will market to
people suffering from excess noise. To be successful, an advertising
campaign must be focused, and appeal to a specific audience for maximum
effect. Two, excessive noise is of itself vague. What constitutes excess
noise is described in the following paragraphs, but for now it suffices to say
an excessive noise sufferer is anyone who experiences noise that is
detrimental to their well-being. Therefore a proper categorization of our
target market is any demographic, but specifically people working in noise-
rich environments like airports, train stations, and construction sites, who
experience so much noise on a daily basis that their health is affected.

It is estimated that regarding harmful noise, thirty million workers in the

United States are affected. 2 This is approximately 9% of the general
population. 3

We believe that mental and physical health should be a top priority for
everyone, and this amount of noise can seriously disrupt ones health, both
mental and physical. The fact that 9% of the population is experiencing this
issue illustrates its prominence and the immediate need for a solution.

It is also a fact that there exists no company or product that provides the
unique solution that we have. A set of headphones may resolve the needs of
one particular person, but if someone who is also in proximity to the noise
also wishes to partake in these benefits, he or she will need to have their
own set.

Existing speakers designed to solve this problem also do not completely

address it, as they simply mask sounds rather than blocking them out totally.
Based on these facts, we believe that the market for our product will be

2 https://www.osha.gov/dts/osta/otm/new_noise/
3 https://www.census.gov/popclock/
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proportional to the amount of people who suffer from this issue and seek
more efficient solutions than ones currently existing.

Target Market

Our target market is everyone who, on a daily basis, and to the detriment of
their physical and/or emotional well-being, is annoyed or distracted by loud
noise :

30 million U.S. workers suffer because of loud noise

With a growing population, this market grows proportionally
Customers mainly feature
o People with sensitive ears
o People whose concentration is frequently disrupted by noise

Profile of Competitors

Competitors on the market:

1) Adaptive Sound Technologies

a) This is a large company that creates sound emitting products that help with
the ability to sleep, blocking noise using either nature sounds or fan/white
noise sounds
b) ASTI is a large company with high credentials in the sleep industry, creating
high profit
c) Pros and Cons
i) Pros:
(1)Generally seen as effective according to customer reviews
(2)Customizable
(3)Can help reduce stress
(4)Usually cheap
(5)Calming and soothing

ii) Cons:
(1)Only masks sounds
(2)At least two products seems to stop working after short amount of time
(hours to months)
(3)Not very portable

2) Sony MDR-ZX770BN - Sony Corporation

a) Sony has created noise-cancelling headphones which are especially useful
for travelers
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b) These headphones cost $229.99, which is relatively cheap compared to other

headphones in the industry
c) Pros and Cons
i) Pros:
(1)Cheap
(2)Can be both wired and wireless at different times
(3)Has Bluetooth
ii) Cons:
(1)Sound quality could be improved
(2)Doesnt completely eliminate noise
(3)Can leave marks on skin
(4)Often sold out
3) Beats Studio Wireless - Beats by Dr. Dre
a) This corporation produces premium headphones with bluetooth, 12 hours of
battery, and noise-cancelling technology
b) The company is a front runner in the auditory industry
c) Pros and Cons
i) Pros:
(1)Good materials
(2)Light
(3)Decent noise reduction
ii) Cons:
(1)Fabric at top of headband gets unclean easily
(2)Frail
(3)Heavier than Bose
(4)Weak bass
(5)Noise reduction weak in airplanes/subways
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4. Product

Soundbreakers product, as discussed above, is a noise-cancellation device.

It works by recognizing the frequency of ambient noises and emitting a noise
of a destructive frequency. In basic terms, it uses noises to cancel noise.
It is based on the idea of destructive interference. What humans
interpret as sound is, in nature, a series of waves, caused by vibrations,
that the ear evaluates based on previous experience. The combination of
these waves can produce variations in sound. These variations are governed
by how synchronized the waves are. As long as the frequency4 of two waves
is the same, the waves can constructively or destructively interfere. When
they constructively interfere, the waves build (construct) upon each other.
It is much like the effect experienced when you push an object already in
motion; the object moves faster. When two waves constructively interfere,
the sound produced by the waves is louder. Destructive interference, on the
other hand, is when waves are out-of-phase. This means one wave is shifted
in relation to the other, and the intensity of the noise decreases. In fact, two
noises can cancel each other out completely if they are out of phase by a
specific amount5. This is the principle upon which Soundbreakers product is
designed. Soundbreaker can emit a noise that has the same frequency as,
say, a baby crying, and can shift the wave of the noise such that the two
waves destructively interfere and no (or little) noise is heard.

4 Frequency is the measure of how fast waves move through the air. The higher the frequency, the shriller
the noise sounds to humans. Source:
http://www.qrg.northwestern.edu/projects/vss/docs/communications/1-what-is-frequency.html
5 http://www.phys.uconn.edu/~gibson/Notes/Section5_2/Sec5_2.htm
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Unfortunately, destructive interference does have its limits. If two

uncomfortable noises are blaring at once, it is impossible to cancel both of
them because they have two different frequencies. Only one noise can be
canceled at a time. The obvious solution is have two Soundbreakers, though
this option may be prohibitively expensive and frankly inconvenient. It is
better, however, than hearing both sounds simultaneously.

The physical appearance of Soundbreaker is much like the Beats Pill device -
a large cylinder with a flat bottom for stability. The user need only place it in
their general vicinity, and select which noise to cancel: the device will then
to do its thing, in colloquial terms.