“Your Solution to Successful
Global Marketing”
Table of Contents
465 New Dorp Lane
Staten Island, NY 10306
Telephone: (718...
Introductory Components
Executive Summary ……………………………………………………………………………..……..……….......i
Company Description …...………………………...
ExecutiveSummary
More than 500 million people use Google Translate every month, making more than one billion
translations ...
To convince reluctant clients that Polyglot’s translation services are worth the expense, this
company will train its sale...
CompanyDescription
Polyglot Translations is a first-year VE company, located at New Dorp High School at 465 New
Dorp Lane,...
Management Functions
Planning
To ensure that the company moves towards profitability and maintains good business practices...
from audio and video files so as to guarantee accuracy.
 By October 2019, add interpreting services to Polyglot’s offerin...
Organizing
Polyglot Translations has chosen to organize the company using a functional structure, with each
department res...
Directing
 Communication: Managers will give clear directions, with face-to-face meetings as well as
flowcharts, emails a...
Assessmentofthe environment
Current EconomicConditions
Snapshot: According to Joseph Quinlan, the chief market strategist ...
U.S. Dollar: The biggest threat to the U.S.
economy is the increasing value of the U.S.
dollar. As the dollar increases, e...
There are potential challenges to growth; competition from automated translation
programs that use artificial intelligence...
Target Market and Market Segmentation
Polyglot has identified its target market to be the employees of VE businesses that
...
Within Virtual Enterprises, Polyglot is one of two translation service companies, the
other being WordWise, located in Bel...
easily sell to international companies; and international travelers to the United States can also
have their personal and ...
For VE businesses that want to conduct business effectively with international companies
at trade fairs and via their webs...
influenced by TV advertising; instead, 78% of teens trust recommendations from their peers and
77% rely on their friends t...
 Trade Shows: Polyglot will attend the
New York, California and Germany
trade shows.
 Strategic Alliances: Aligning with...
Business Risks
Risk identified
Polyglot may not be able to grow the company by securing future contracts with schools,
sma...
instead of its own Google Translate app when the company needs legal translations because
machine translations are only ab...
BreakEvenAnalysis
Average selling price per sale $347.78
Average cost of goods sold per sale $13.47
Average profit rate 96...
Balance Sheet
CashBudget
INCOME STATEMENT
Financialwrite-up
Polyglot has compiled 3 financial statements and a breakeven anaylysis for this business
plan. The balan...
Appendix
Section
WorksCited
Beck, Martin. "This Survey Says: Teens Are Fleeing Facebook; Instagram & Twitter Are More
Popular." Marketing L...
Madden, Mary, and Amanda Lenhart. "Teens and Technology 2013." Pew Research Centers
Internet American Life Project RSS. 12...
<http://www.tradingeconomics.com/united-states/balance-of-trade>.
"United States GDP Growth Rate | 1947-2015 | Data | Char...
Polyglot BP v4
Polyglot BP v4
Polyglot BP v4
Polyglot BP v4
Polyglot BP v4
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Polyglot BP v4

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Polyglot BP v4

  • 1. “Your Solution to Successful Global Marketing” Table of Contents 465 New Dorp Lane Staten Island, NY 10306 Telephone: (718) 667-8686 x 13060 Fax: (718) 351-1921 E-MAIL: www. polyglottranslations@aol.com www.polyglottranslatio.wix.com/polyglottrans .
  • 2. Introductory Components Executive Summary ……………………………………………………………………………..……..……….......i Company Description …...……………………………………………….……........................................................ 1 Mission Statement ……………...……………………………………………………………………...…............... 1 Management Functions Planning ……………………………………………………………………………………………………………. 2 Organizing ………………………………………………………………………………………………………….3 Directing ………………………………………………………………………………………………………….... 4 Controlling……………………………………………………………………………………………………….…4 Assessment ofthe environment Current Economic Conditions…………………………………………………………………………………… 5-6 Industry Analysis -Real…………………………………………………………………………………………………….. 6-7 -Virtual……………………………………………………………………………………………………..7 Target Market & Target Segmentation…………………………………………………………………………….. 8 Competitive Analysis……………………………………………………………………………………..............8-9 The Marketing Mix………………………………………………………………………………………….… 9-12 SWOT Analysis S.W.O.T Analysis…………………………………………………………...………………………………….… 12 Business Risks………………………………………………………………………………………………....13-14 Financial Data Break-even Analysis……………………………………………………………………………………................ 15 Balance Sheet……………………………………………………………………………………………............... 16 Cash Budget……………………………………………………………………………………………………….17 Income Statement…………………………………………………………………………………………………. 18 Financial Write-up………………………………………………………………………………………...............19 Appendix …..................................................................................................................................................... A1-A5
  • 3. ExecutiveSummary More than 500 million people use Google Translate every month, making more than one billion translations a day to more easily communicate and access information across languages (Turovsky). Although these machine translations are informal and do not require the accuracy of translation services by real linguists, it shows the great need of people to break down barriers to connect with each other. Translation services were among Inc.’s 2014 Best Industries, experiencing growth despite worldwide economic instability and is expected to grow by 42% between 2010 and 2020, reaching $39 billion. The most important reason for this growth is globalization: as companies take their products overseas, they need to run multi-lingual marketing campaigns (Best). Polyglot Translations, a first year company from Staten Island, New York, is excited to offer this service to Virtual Enterprises businesses that want to conduct business effectively with international companies. While in the real world, there are over 3000 domestic translation companies, Polyglot is just one of two translation companies in VE. Since competition has been identified as a threat, Polyglot will position itself as the company that provides a solution to successful global marketing, with high-quality, accurately translated documents and marketing materials. As in the real world, Polyglot expects demand for its services to be high since there are over 5000 VE businesses worldwide and as these companies seek to conduct business with international customers via websites, email and trade shows, they will need multi-lingual marketing campaigns. Polyglot will target trade show participants and use pre-show social media promotions and high-quality promotional materials to attract reactive buyers. Forming strategic alliances at the trade shows to increase market share from cross-selling is an opportunity for this company, and one of Polyglot’s strengths is a multi-lingual staff that will attend the trade shows. Attending the trade shows for face-to-face sales should lessen the weakness of limited work hours, as it will be a challenge doing business with companies in different time zones. The mission of Polyglot Translations is to provide accurate and culturally competent translation services to VE International companies and employees at an affordable price and with excellent customer service. Goals for this year include creating an excellent work environment with state-of-the- art office equipment, furniture and optimal translation software and generating at least $760,000 in total sales by April, 2015. While Polyglot anticipates reaching its financial goal by attending three trade fairs, contracting with New Dorp High School to translate exams and documents, and by promoting the company via Instagram, Twitter and strategic alliances, this company is aware that it will need strategies to mitigate the risk of not meeting sales goals.
  • 4. To convince reluctant clients that Polyglot’s translation services are worth the expense, this company will train its sales staff to provide excellent customer service. All leads will be followed up within 48 hours and samples of the work will be mailed out to prospects. Polyglot’s staff will also educate clients on the hazards of machine translations and point out that the information in highly confidential documents should never be run through free, public translation websites. Sales staff will also demonstrate that free translation apps are only about 75% accurate and that translated marketing materials from highly competent translators at Polyglot will give a better impression to international customers and help close the deal. Polyglot’s business model is to produce a high level of customer satisfaction, which means that this company will have to produce a high quality product that will obviously be at a higher cost than in- house or Google translating. However, as this is a new business which needs to gain market share quickly, Polyglot will use Penetration Pricing and initially set the prices for its products at a low price. VE employees will pay as little as $100 to have their business cards translated and even the Global Marketing Campaign, which includes translations of most marketing materials used at trade shows, is an affordable $1000. Polyglot Translations has five departments, and leadership for each department is provided by managers who complete a six month internship program. To motivate its staff towards excellence, Polyglot will distribute monthly awards. To ensure that all financial reports are accurate, Polyglot Translations has created an Internal Audit Department. Financially, Polyglot earned $341,760 in sales revenue in its first month of operation, with $301,000 earned from non-VE sales and $40,760 in VE sales to NYC firms. With an additional $210,000 expected in trade fair revenues and another $210,000 expected from ordinary VE sales and interest income, Polyglot anticipates over $761,000 in revenue for this fiscal year. After $480,000 in operating expenses are deducted, we anticipate a pre-tax net income of over $246,000.This is an incredible accomplishment for a brand new firm.
  • 5. CompanyDescription Polyglot Translations is a first-year VE company, located at New Dorp High School at 465 New Dorp Lane, Staten Island, New York, and was established as a C-Corporation on October 5, 2014 in the State of New York. This status was selected because the company is legally viewed as a distinct entity, so the company will be taxed instead of the employees. Also, as a C-Corp, Polyglot’s managers will be able to offer fringe benefits, such as matching 401K plan, to the employees in the future, which will qualify for company tax deductions. The name “Polyglot” was selected for this new company because it literally means “many languages.” Polyglot Translations has twenty-one diverse employees who speak eight languages, allowing this company to provide accurate translations of all types of marketing materials and other professional documents. Polyglot was launched to help all VE business grow internationally by offering solutions to global marketing. Since almost all VE companies (a) sell internationally, (b) have a website, and (c) produce brochures and flyers, there is an excellent opportunity for our service. Demand for services is already high, and with over $340,000 in sales in the first month of business, Polyglot anticipates reaching its goal of $761,000 in sales this fiscal year. Polyglot received $300,000 in equity financing from VE Central in October, 2014, which currently owns 100% of Polyglot’s stock, valued at $10 per share. Polyglot expects to pay VE Central the first dividend of 10% of the total stock value in May 2015. Polyglot anticipates the stock value to rise, not only because of the profitability in its first year, but also because of the excellence of its business model as evidenced by Polyglot placing first in this year’s Brooklyn/Staten Island Regional Business Plan Competition and the NYC Business Plan Competition as well. MissionStatement With focused leadership, along with a diverse and dedicated staff, Polyglot Translations will provide accurate and culturally competent translation services to VE International companies and employees at an affordable price and with excellent customer service.
  • 6. Management Functions Planning To ensure that the company moves towards profitability and maintains good business practices, Polyglot has enumerated both short term and long term goals. Short TermGoals  Generate at least $760,000 in total sales by April 2015 by attending three trade fairs, contracting with New Dorp High School to translate exams and other school documents, and by using pre- sales online promotions, social networking and strategic alliances.  Design a user-friendly website before the trade fair in Germany in November 2014 by translating it into at least three languages common to VE.  Create an excellent work environment by October 2014 by purchasing state-of-art office equipment and furniture, plus optimal translation software.  Reach monthly sales and customer satisfaction goals by April 2015 by properly training employees to follow up with every phone call and website inquiry within 48 hours.  Establish an excellent credit rating and history by making the first dividend payment to VE Central in May 2015. Longtermgoals  By October 2016, contract with VEI to translate documents for correspondence with international VE businesses.  By January 2017, increase the number of languages this company translates by hiring at least five new employees who speak languages not currently offered.  By October 2018, add transcription services to this company’s offerings by training staff to work
  • 7. from audio and video files so as to guarantee accuracy.  By October 2019, add interpreting services to Polyglot’s offerings by hiring staff that can travel with clients to meetings and conferences.  By April 2019, achieve 15 percent of sales from referrals by reaching 100% customer satisfaction as evidenced by surveys and loyalty.
  • 8. Organizing Polyglot Translations has chosen to organize the company using a functional structure, with each department responsible for specific tasks, which include sales, marketing, human resources, accounting and auditing. Although the departments will work separately, the managers will have daily meetings to coordinate projects and avoid duplication. Managers will use line authority, and while they will have the formal power to direct and control immediate subordinates in their departments, they are encouraged to delegate responsibility since micromanaging often reduces efficiency and limits autonomy. Since one of the reasons a business exists is to make money, Polyglot naturally has an accounting department which monitors the company’s financial transactions and generates reports such as Income Statements, Cash Flows and Balance Sheets. While few VE businesses have an internal auditing department, Polyglot believes this department is vital to maintaining the accuracy of its financial documents, as well as the ethical standards of the company. This department serves as senior management’s eyes and ears because one of their main objectives is to report everyone’s progress on daily tasks. Polyglot’s other internal department is Human Resources, which is entrusted to handle employee relations, including attendance and warning letters. The departments that handle Polyglot’s external business transactions are sales and marketing departments. In addition to handling customer service, the sales staff is also responsible for purchasing any products or services, such as insurance and furniture, which are needed for the firm to operate. Marketing’s staff develop promotions as well as monitoring the company website, blogs and social media accounts.
  • 9. Directing  Communication: Managers will give clear directions, with face-to-face meetings as well as flowcharts, emails and memos. They will also encourage upward communication so employees can come to them with any problems without fear of being disciplined.  Leadership: Since one of Polyglot’s goals is to create an excellent work environment, managers will take a six month leadership training program so they will be able to use their skills to build team spirit and get the best out of the employees. Employees will be treated with respect and managers will be fair and impartial in issuing work orders.  Supervision: Each employee will get their directions from their department manager so there will be no conflict of interest or confusion. This will also avoid duplication of efforts and waste of resources. The managers will be very hands-on with frequent checks to make sure everyone is staying on-task.  Motivation: Employees that exceed work expectations will receive bonus points on their overall grade and public recognition with Employee of the Month Awards. Perfect attendance will also be recognized with bonus points and awards. Controlling  Preliminary controls: Polyglot’s controls will start even before the employee is hired. Since this company will have access to its clients’ sensitive and private documents, prospective employees will be screened during the interview process for both business and language skills as well as their ability to understand and follow privacy guidelines. All employees will also be issued an employee manual, which has lists of all standard operating procedures for each department.  Concurrent controls: Managers will meet with their staff daily to make sure they are on task and to catch any small errors. Polyglot will create its own Internal Auditing Department and financial controls will be measured by daily, weekly and monthly audit reports, which will be reviewed by the CEO for accuracy or deviations.  Feedback controls: Managers will give staff monthly Performance Evaluations and also use customer satisfaction surveys to give feedback to the employees. If an employee is not meeting work expectations, the manager can choose to re-train the employee, re-assign him or her to a different task within the department or transfer the employee to a new department.
  • 10. Assessmentofthe environment Current EconomicConditions Snapshot: According to Joseph Quinlan, the chief market strategist at Bank of America Private Wealth Management, the outlook for the economy in 2015 is positive, as American consumer confidence continues to grow, the nationwide unemployment is below 5.7 percent and the FED Funds interest rate is below 0.25% and remaining untouched since June 2009. He is confident the positive trend will continue through mid-year, but warned that the long-term outlook is still questionable as the U.S. dollar continues to strengthen and the rest of the world remains in trouble (Mullen). GDP: The Gross Domestic Product in the United States expanded at a seasonally adjusted annual rate of 5.0% in the third quarter of 2014 over the previous quarter (US GDP). This was in part due to businesses borrowing again from banks for expansion and an increase in hiring and salaries. As a result of company growth and a stronger U.S. economic outlook, consumers are more confident. Given that American consumers are responsible for driving 70% of the U.S. GDP, this indicator is extremely important (Mullen). Balance of Trade: The U.S. trade gap decreased to USD 39 billion in November of 2014 from a revised USD 42.3 billion in the previous month. It is the lowest trade deficit since December of 2013, supported by a fall in crude oil imports (US Balance). This indicator is possibly the most impactful economic trend for American households. Oil prices are projected to become so cheap that it will result in consumers using more, which will create a new natural equilibrium, an intersection point where supply equals demand for oil in the United States (Mullen).
  • 11. U.S. Dollar: The biggest threat to the U.S. economy is the increasing value of the U.S. dollar. As the dollar increases, exports will decline. Additionally, Europe and China will see greater deflation, and U.S. citizens with international earnings will see a decrease in salary as it is exchanged for U.S. currency. If the value of the dollar continues to increase at its current rate, during mid-year, small- to medium-sized business owners may slow hiring and hold cash for better times. If this happens, the Federal Reserve will likely raise interest rates (Mullen). (Financial) Real TranslationIndustry Analysis More than 500 million people use Google Translate every month, making more than one billion translations a day to more easily communicate and access information across languages (Turovsky). Although these machine translations are informal and do not require the accuracy of translation services by real people, it shows the great need of people to break down barriers to connect with each other. Translation services were among Inc.’s 2014 Best Industries, with analysts saying that “demand from tourists and global firms is stoking this industry’s flames” (Best). The translation industry has experienced growth despite worldwide economic instability since 2008 and according to the U.S. Bureau of Statistics, the translation industry is expected to grow by 42% between 2010 and 2020, reaching $39 billion. The most important reason for this growth is globalization: as companies take their products overseas, they need to run multi-lingual marketing campaigns (What). According to International Data Group, "a web site visitor is up to four times more likely to purchase a product or service if it is presented in his/her native language" (Translation). Increases in immigration will also keep this industry in demand. (What) In the United States, demand is also high because diverse consumers want everything on their own terms, and that includes a preference for communicating in their own language. Companies must also look internally; for example, an organization like Starbucks not only has to support their customers, but their employees as well, so every aspect of what they do, including human resources, has to be translated (Krasny).
  • 12. There are potential challenges to growth; competition from automated translation programs that use artificial intelligence, as well as voice and optical recognition, is expected to increase in the next five years (Dahl). In the United States there are approximately 3,000 companies that provide translation services. From 2007 to 2011, the industry created over 7,000 new jobs and now has nearly 22,000 jobs. Over 60% of the people employed in this sector are female and more than 50% are between the ages of 25 and 44 (Sentz). (Source: Sentz) Virtual Industry Analysis Virtual Enterprises International is comprised of 47 firms in New York City, 509 firms in the United States and nearly 5,000 across the globe, including Canada, Europe and Asia. Commerce among the VE firms is conducted electronically as well as face-to-face in various national and international trade shows. Last year more than 4000 attendees from over 150 global businesses participated in the New York City Trade Show, generating millions of dollars in VE revenue. This year, these VE businesses will travel to many scheduled trade shows, including Germany, California and New York. Therefore, Polyglot expects demand for translation services to be high, as these businesses will seek to increase their sales by communicating more effectively from accurately translated marketing materials.
  • 13. Target Market and Market Segmentation Polyglot has identified its target market to be the employees of VE businesses that conduct business with international companies. Since 100% of this target market has a website and uses email to communicate with its customers, then 100% of this market needs Polyglot’s translation services. While this potentially means that over 5000 global VE businesses could purchase translation services, it is more realistic that Polyglot will sell to those traveling to international trade shows held throughout the year, since they have a more compelling reason to have their marketing materials translated. Polyglot will attend several of trade shows this year, so customers will be able to deal directly with this company’s sales force. To develop effective sales strategies, Polyglot will segment this target market according to the following attributes: Competitive Analysis Polyglot has determined that its main competitor is the real world Google Translate app. While Polyglot has to admit this newly improved app is an excellent tool, it does have its limitations. Not all sentences are translated perfectly, and while this may be acceptable for informal use, this could be financially devastating to a business that needs accurate translations of their professional documents. Jim Edwards, of Business Insider, says the app is “astonishing” but also admits that it’s “not perfect, but good enough,” as evidenced by the example below copied from his review (Edwards). Polyglot firmly believes that “good enough” is not what VE businesses want or expect and accurate translations by real people is a very necessary service. Demographic •17-20 year old employees of VE businesses •NYC High School administrators Psychographic •VE employees seeking to communicate effectivelyinforeign languages •Businesses seeking to present a more professional image Behavioral •Travelers to trade fairs •Reactive buyers that wait for a good deal Geographic •Europeanstudents •California students •NYC students
  • 14. Within Virtual Enterprises, Polyglot is one of two translation service companies, the other being WordWise, located in Belgium. However, while Polyglot sent a sales team to the Essen, Germany trade show in November 2014, WordWise was not present, allowing Polyglot to gain significant market share in Europe and exceed its projections by 150%, earning $125,000 instead of $50,000. Polyglot has also identified numerous indirect competitors. These include any VE companies that translate their own documents and marketing materials using free translating apps. Also, consumers at trade shows tend to be impulsive, so all businesses offering prizes and free promotional materials to attract customers to their booths will also be competition. In response to this potential competition for Polyglot’s services, this company will hire highly qualified staff to translate in their native languages and use optimal translation software for other languages to guarantee the best possible outcomes. Polyglot will send monthly newsletters in different languages to VE businesses to demonstrate its’ expertise. Sales reps at trade shows will use Polyglot’s own translated marketing materials to display the higher quality translations that can be achieved with our service as opposed to in-house translating or translations using the Google app. Promotional giveaways will also be of high quality. The Marketing Mix Product Polyglot’s translation services covers a wide range of document types including brochures, catalogues, flyers, contracts plus website translation. Every project includes a multi- phase quality assurance process and uses the latest software to promote consistency across all documents. Polyglot offers translations in many languages, including Spanish, German, Arabic and several Chinese dialects. High School administrators will be able to have exams translated for the ELL students; VE businesses can translate their marketing materials so they can more
  • 15. easily sell to international companies; and international travelers to the United States can also have their personal and professional documents translated into English. While each service may be purchased separately, Polyglot has created a special Global Marketing Campaign bundle package to simplify the buying process for trade show travelers. Price Polyglot’s business model is to produce a high level of customer satisfaction, which means that this company will have to produce a high quality product that will obviously be at a higher cost than in-house or Google translating. However, as this is a new business which needs to gain market share quickly, Polyglot will use Penetration Pricing and initially set the prices for its products at a low price. Once the business is more established, Polyglot’s prices will be reevaluated and the products will be priced according to its real value as determined by the marketplace so as to have a high client retention rate and high referral rates. Polyglot’s R&D staff used real-world prices to determine this company’s prices.  Global Marketing Campaign: $1000 (Includes all listed translation services except website translation.)  Contracts: $150 per page  Documents/Exams: $150 per page  Newsletters: $350 per two pages  Brochures: $250 per page  Catalogue: $30 per page  Flyers: $100 (up to 20)  Business Cards: $100 (up to 50)  Website translation: $1000 (up to 20 pages, one language) Position
  • 16. For VE businesses that want to conduct business effectively with international companies at trade fairs and via their websites, Polyglot Translations will position itself as a solution to successful global marketing. Unlike free machine translations, Polyglot’s multi-lingual consultants promise to deliver high-quality, accurately translated documents and marketing materials. Placement Polyglot is part of a virtual network of businesses that sell directly to each other via websites and trade fair sales. For this first year of business Polyglot will develop and launch a user-friendly website with clear descriptions of its services as well as attend three trade shows and networking events. Polyglot expects to earn 27% of its sales revenue from trade show sales in Germany, California and NYC, where prospects can handle actual translated marketing materials and benefit from special pricing promotions. In addition, Polyglot anticipates 40% of its revenue to come from non-VE sales, which is primarily a contract with New Dorp High School to translate exams, class contracts and a website page. Internet sales will complete the annual revenue, with 33% expected from this segment. Web clients will benefit from monthly promotions. Promotions Polyglot’s research on how to effectively promote and brand the company via social media has revealed that its’ target market of 17 to 20 year olds are part of the iGeneration. A recent survey of 7,200 U.S. students reports only 45% of teens use Facebook, with 76% using Instagram and 59% using Twitter (Beck). Reasons that iGeneration kids prefer Instagram and Twitter include that attention spans are getting shorter, about 8 seconds, and teens prefer visual content and communication (Lane). In addition, Fuse Marketing says that only 59% of teens are Trade Shows 27% Non-VE 40% Internet 33% SALES
  • 17. influenced by TV advertising; instead, 78% of teens trust recommendations from their peers and 77% rely on their friends to tell them about new products and brands. (Bulik). Armed with this information, Polyglot will promote its brand with short messages, mostly on Instagram and Twitter, and use more pictures than words in its communications. The messages will be in various languages to further enhance the company’s brand. To encourage recommendations, Polyglot will offer incentives, such as discount coupons, for filling out and returning satisfaction surveys and for referring friends. Polyglot will budget $5500 to send sales reps to the trade shows in Germany, California and NYC. Promotions at these events will include distributing brochures, business cards and other marketing collateral. To further encourage prospects to visit the booths, Polyglot’s sales team will give away branded pens and hold raffles for an iPad for anyone making a purchase. Polyglot will also budget $19,500 with Brandmark Advertising for promotions on the VEI website and trade show billboards. S.W.O.T. Analysis  Multi-lingual: Polyglot’s staff speaks eight languages.  Debt-free: Polyglot used equity financing to avoid high interest loan.  High-quality translation software: Polyglot uses top-rated Babylon 9. Strategies to Capitalize  Use multi-lingual staff for interpreting  New business: Polyglot has no established reputation or brand recognition.  Limited work hours: Doing business with companies in different time zones poses a challenge. Strategies to Improve  Send frequent, relevant Instagram and Twitter promotions to increase brand awareness  Attend trade shows for face-to-face meetings with distant clients
  • 18.  Trade Shows: Polyglot will attend the New York, California and Germany trade shows.  Strategic Alliances: Aligning with other VE businesses will increase market share through cross-selling. Strategies to Capitalize  Using our own translated marketing materials at trade shows will increase awareness.  Free online/app translations: companies can do it themselves.  VE Competitor: new or existing translating businesses can undercut prices and affect market share. Strategies to Improve  Bring translated documents to trade fairs to show differences in machine vs. Polyglot.  Create barriers to entry through excellent customer service and accuracy to increase loyalty and referrals.
  • 19. Business Risks Risk identified Polyglot may not be able to grow the company by securing future contracts with schools, small local businesses or VEI to translate confidential documents because the administrators or owners use free online software to translate exams, documents and international correspondence. Risk addressed To mitigate the risk and convince administrators that Polyglot’s translation services are worth the expense, this company will first use New Dorp High School as a reference to demonstrate the successful translation services it has executed this year. The staff will then be trained to educate future clients on the benefits of using Polyglot’s services. Polyglot’s staff will point out that the information in a highly confidential document should be just that: confidential. Free translation apps, like Google Translate or Bing Translator, store the user’s input text in order to improve the app’s performance. However, this also means that other parties may access the stored information, so even Google recommends that legally binding contracts and any other kind of confidential documents should never be run through free machine translation tools. Not only does Polyglot’s staff understand the importance of client confidentiality, they also provide more accurate translations than a machine. Even Google uses professional translation companies Risk Identified: Failingtosecure future non-VE contracts Risk Addressed: Demonstrate accuracy and confidentialityof Polyglottranslations Risk Identified: Failure toreach 100% customersatisfaction Risk Addressed: Ensure customer satisfactionwithon- time andaccurate translations Risk Identified: Failure toreach financial goal of $760,000 this fiscal year Risk Addressed: Have attention-getting boothsand rafflesat trade showsand form strategicalliances
  • 20. instead of its own Google Translate app when the company needs legal translations because machine translations are only about 75% accurate (The Best). Risk Identified Polyglot may not achieve 100% customer satisfaction, thereby reducing the number of repeat clients and referrals. Risk Addressed As previously mentioned, accuracy is important in translations and Polyglot believes this is the key to attracting and retaining customers. Machine translation tools do not understand culture and context, so nuances will be lost in translation and even Google recommends against using Google Translate for marketing purposes (Machine). Polyglot’s sales team will demonstrate to clients that a culturally accurate translated brochure gives a better impression to international customers, and shows that they care enough to provide user-friendly marketing materials. Polyglot will also deliver these translated materials on a timely basis. Risk Identified Polyglot may not reach its goal of generating at least $760,000 in total sales for this first fiscal year. Risk Addressed While Polyglot believes that educating VE businesses on the pros of using its translation services will help the company reach its’ financial goals, this company understands that just relying upon this strategy may not be enough to ensure first year profitability. To mitigate this, Polyglot will attend three trade shows this year, in Germany, California and NYC. Booths will be attractive and sales teams will bring marketing collateral translated into several languages to show other businesses the quality of Polyglot’s work. Polyglot will form a strategic alliance with F.A.C.T.S. Tutoring Company to share trade show travel and booth expenses and to refer and cross sell each other’s services. Polyglot will also have trendy, high-quality prizes in raffles at the trade shows to attract more people to the booth and encourage prospects to purchase translation services.
  • 21. BreakEvenAnalysis Average selling price per sale $347.78 Average cost of goods sold per sale $13.47 Average profit rate 96% Annual Fixed Cost $474,128.08 Breakeven point in units: 1,419 Breakeven point in sales: $493,231.54
  • 22. Balance Sheet
  • 23. CashBudget
  • 24. INCOME STATEMENT
  • 25. Financialwrite-up Polyglot has compiled 3 financial statements and a breakeven anaylysis for this business plan. The balance sheet is actual through Dec. 31,2014 and we also provided a projected balance sheet through the end of our first year- April 30,2015. The balance sheets relect $300,000 in common stock held by NYC Central VE, as well as all other particular partaining to assets, liabilites and owners equity. We believe our balance sheet is outstanding for a first-year firm. The cash budget refelects the money that flows in and out of our bank accounts. Polyglot anticipates a closing cash balance of $413,042.84 by April 30, 2015.We believe that a positive cash flow for a first year firm is a major accomplishment. Our income statement reflects $761,760 in gross revenue for our firm this year, with a modest $37,359 in cost of goods sold, which are primary the costs of paper, postage and ink needed to provide clients’ documents with $480,813.92 in operating expenses and $79,231.43 anticipated in corporate tax payable, Polyglot anticipates and after-tax net income of $166,874.81. This year our breakeven analysis reveals we need $493,231.54 to breakeven this year, requiring almost 1,419 sales to do so. Our average selling price is $347.78 and our average cost of goods sold is $13.47, for a profit margin percentage of 96%.
  • 26. Appendix Section
  • 27. WorksCited Beck, Martin. "This Survey Says: Teens Are Fleeing Facebook; Instagram & Twitter Are More Popular." Marketing Land. 8 Oct. 2014. Web. 24 Jan. 2015. <http://marketingland.com/survey-says-teens-fleeing-facebook-103174>. "Best Industries for Starting a Business in 2014." Inc.com. Web. 11 Nov. 2014. <http://www.inc.com/best-industries>. Bulik, Beth Snyder. "IGen Influential With Peers, Household-Buying Decisions | News - Advertising Age." Advertising Age News RSS. 17 Oct. 2011. Web. 24 Jan. 2015. <http://adage.com/article/news/igen-influential-peers-household-buying- decisions/230427/>. Dahl, Darren. "The 8 Best Industries for Starting a Business (In Detail)." Inc.com. Inc. Web. 11 Nov. 2014. <http://www.inc.com/magazine/201404/darren-dahl/the-best-industries-for- starting-a-business.html/6>. Edwards, Jim. "Google's New Language Translation App Is Astonishing." Business Insider. Business Insider, Inc, 15 Jan. 2015. Web. 17 Jan. 2015. <http://www.businessinsider.com/google-translate-babel-fish-from-hitchhikers-guide- 2015-1>. Krasny, Jill. "Lost in Translation? There's a Whole Industry to Help." Inc.com. 25 Mar. 2014. Web. 11 Nov. 2014. <http://www.inc.com/jill-krasny/why-translation-services-is-a-top- industry-to-start-a-business.html>. Lane, Sylvan. "Beyond Millennials: How to Reach Generation Z." 20 Aug. 2014. Web. 24 Jan. 2015. <http://mashable.com/2014/08/20/generation-z-marketing/>. "Machine Translation vs Human Translation." Orb Language Solutions. Web. 22 Jan. 2015. <http://www.orblanguagesolutions.com/#!machine-translation/c121z>.
  • 28. Madden, Mary, and Amanda Lenhart. "Teens and Technology 2013." Pew Research Centers Internet American Life Project RSS. 12 Mar. 2013. Web. 24 Jan. 2015. <http://www.pewinternet.org/2013/03/13/teens-and-technology-2013/>. Mullen, Renee. "San Diego Source | The Daily Transcript." San Diego Source | The Daily Transcript. 23 Jan. 2015. Web. 24 Jan. 2015. <http://www.sddt.com/Commentary/article.cfm?Commentary_ID=346&SourceCode=20 150123tzb&_t=2015 economic outlook is positive while playing the waiting game#.VMQd9_54pcQ>. Sentz, Rob. "INDUSTRY REPORT: Translation and Interpretation Services." EMSI Economic Modeling Specialists Intl. 21 Mar. 2012. Web. 11 Nov. 2014. <http://www.economicmodeling.com/2012/03/21/industry-report-translation-and- interpretation-services/>. "The Best Way to Get Legal Translations." Legal Language Services The Best Way to Get Legal Translations Comments. 22 Mar. 2010. Web. 22 Jan. 2015. <http://www.legallanguage.com/legal-articles/best-translator/>. "The Financial Forecast Center TM." Euro to Dollar Exchange Rate Forecast 2015. 24 Jan. 2015. Web. 24 Jan. 2015. <http://www.forecasts.org/euro.htm>. "Translation Services and International Marketing Info and Solutions That Work!" Translation Services and International Marketing Info and Solutions That Work! Web. 22 Jan. 2015. <http://www.translate-to-success.com/>. Turovsky, Barak. "Hallo, Hola, Olá to the New, More Powerful Google Translate App - Google Translate Blog." Hallo, Hola, Olá to the New, More Powerful Google Translate App - Google Translate Blog. Google, 14 Jan. 2015. Web. 30 Jan. 2015. <http://googletranslate.blogspot.com/2015/01/hallo-hola-ola-to-new-more- powerful_14.html#links>. "United States Balance of Trade | 1950-2015 | Data | Chart | Calendar." United States Balance of Trade | 1950-2015 | Data | Chart | Calendar. 7 Jan. 2015. Web. 24 Jan. 2015.
  • 29. <http://www.tradingeconomics.com/united-states/balance-of-trade>. "United States GDP Growth Rate | 1947-2015 | Data | Chart | Calendar." United States GDP Growth Rate | 1947-2015 | Data | Chart | Calendar. 23 Dec. 2015. Web. 24 Jan. 2015. <http://www.tradingeconomics.com/united-states/gdp-growth>. "What Is The Size of the Translation Industry?" Pangeanic.com. Pangeanic. Web. 11 Nov. 2014. <http://www.pangeanic.com/knowledge_center/size-translation-industry/>.

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