Table of Contents (linked to section)
1. Executive Summary
1.1 Product
Security has become one of the leading research areas in the technology field, however, Wi-Fi security has been left on the backburner after the encryption protocol, Wi-Fi Protected Access (WPA2), became somewhat of a standard in the industry. Cybercriminals are able to connect to the network of a small to medium-sized business from outside and take control of the victim’s network, without even being inside the building. What if that didn’t happen anymore?
Wireless Defender seeks to solve this problem by blocking RF waves (including WiFi signals) from exiting the workplace. A mono-directional wireless antenna combined with a physical shield on the router stops these signals from leaving the walls of the building, protecting the network from cybercriminals who may be trying to connect to the wireless router.
As all buildings have different shapes and interior layouts, the shield must be bent according to the shape of the building. The physical shield on the router will be able to bend to the user’s liking in order to block the signals most effectively. I will conduct experimentation on the best material to use for the shield, as well as how shaping the shield differently affects the results. This project has been validated through resources and experimentation.
Wireless Defender seeks to solve this problem by blocking RF waves (including WiFi signals) from exiting the workplace. A mono-directional wireless antenna combined with a physical shield on the router stops these signals from leaving the walls of the building, protecting the network from cybercriminals who may be trying to connect to the wireless router.
As all buildings have different shapes and interior layouts, the shield must be bent according to the shape of the building. The physical shield on the router will be able to bend to the user’s liking in order to block the signals most effectively. I will conduct experimentation on the best material to use for the shield, as well as how shaping the shield differently affects the results. This project has been validated through resources and experimentation.
1.2 Customers
The company’s target market consists of small business owners who are serious about protecting their business from cybercriminals. Cybersecurity is one of the most detrimental, and unfortunately, overlooked problems faced by small business owners. According to the 2018 Verizon Data Breach Investigations Report, 58% of cyber attack victims are small businesses. These cyber attacks can be so damaging to a small business because the cost alone of "cleaning up" after a data breach is considerable. Around 60% of small businesses that are cyber attacked must suspend operations, and are unable to reopen, due to bankruptcy. The lost revenue due to downtime, the money spent to remediate the business, and the damage to the business’ reputation are why cyber attacks on small businesses are so damaging.
1.3 What Drives Us
Wireless Defender’s solution to this problem is a mono-directional antenna for your business's router, and a Radio Frequency (RF) shielding panel to block any remaining signal. By using RF engineering technology, not only can you optimize your business for Wi-Fi coverage, but you can limit what areas are covered. We have conducted many experiments, and used the data and research to refine the shield. Our patent-pending shielding material, along with a revolutionary RF-shielding fabric, will block any and all extraneous signals. Wireless Defender Co. is committed to providing small businesses with a highly-secure and low maintenance security system to keep their private data in their hands.
2. Company Description
2.1 Mission Statement
Wireless Defender Co. reduces the vulnerability of small business network systems by implementing combined cyber-security and cyber-defense systems that neutralize advanced wireless threats, thereby improving security for all businesses.
2.2 Legal Structure
Our business structure is a sole proprietorship (SP) that is unincorporated and run by a sole individual, Patrick Ziemke, (there are no partners) with no distinction between the business and its owner. As a sole proprietor, Mr. Ziemke is entitled to all of the business’s debts, losses and liabilities. This business structure as it is fairly simple to form. Sole proprietorships only require a permit/license and registration with the local government.
Some advantages of this business structure are that these businesses are relatively unencumbered by government regulations, mitigating the risk of facing legal technicalities. Sole proprietorships can also report any tax through income, and do not need to file a separate ‘Business’ tax plan. One disadvantage of this structure is that sole proprietors are personally liable for all business losses and debts, because there is no legal distinction between the company owner and the business.
Some advantages of this business structure are that these businesses are relatively unencumbered by government regulations, mitigating the risk of facing legal technicalities. Sole proprietorships can also report any tax through income, and do not need to file a separate ‘Business’ tax plan. One disadvantage of this structure is that sole proprietors are personally liable for all business losses and debts, because there is no legal distinction between the company owner and the business.
3. Market Research
3.1 Industry
Wireless security is the prevention of unauthorized access or damage to computers or data using wireless networks. This is part of the much broader field of cybersecurity and information technology security which serves to protect computer systems from theft or damage to their hardware, software, or electronic data, as well as from disruption or misdirection of the services they provide.
3.2 Customer Analysis
Wireless Defender Co.’s target consumers are the owners of small to medium-sized businesses in the United States. Broadband and information technology are powerful factors in small businesses, reaching new markets and increasing productivity and efficiency. However, with the rise of cyber attacks in the United States, and the fact that 58% of cyber attack victims are the owners of small businesses, owners need a simple cybersecurity strategy to protect their business, their customers, and their data from growing cyber threats. The Internet allows businesses of all sizes and from any location to reach new and larger markets and provides opportunities to work more efficiently by using computer-based tools. Every business that uses the Internet is responsible for creating a culture of security that will enhance business and consumer confidence.
3.3 Competitors
Cybersecurity is a very popular and growing field at the moment, and Wi-Fi security has become a focus in information technology security. However, the competition for Wi-Fi network security only extends as far as companies providing software solutions to small business cybersecurity. These include firewall appliances, Virtual Private Network (VPN) and proxy services, and anti-virus computer protection. There are currently no hardware products on the market today that serves as a solution to Wi-Fi security for small businesses. The most prominent of companies in the wireless network security market include:
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Vertical Divider
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3.4 Competitive Advantage
Wireless Defender Co. holds a competitive advantage over other cybersecurity companies as we are the only company providing a no-maintenance, responsive, hardware solution to network security. We have done a lot of research and experimentation into the field of cybersecurity and radio frequency engineering, and with the support of the small business community, together, we can take the first step towards eliminating cyber criminals from targeting your business.
3.5 Regulations
3.5.1 S.B. 949
Status: June 30, 2015; Public Act No. 15-142
Relates to data security and agency effectiveness; relates to contractor compliance with breach of confidential information procedures, a data-security program for the protection of confidential information and a report of any breach; requires the Office of Policy and Management to furnish financial accounting statements; requires any owner or licensee of computerized data to provide identity theft protection or mitigation services to victims; requires an inoperable feature on sales of smartphones. |
3.5.2 H.B. 6317
Status: June 23, 2015; Special Act No. 15-13
Concerns a study of cybersecurity; requires the Department of Administrative Services, in consultation with the Department of Emergency Services and Public Protection, to conduct a study examining cybersecurity issues facing the state; relates to recommendations to promote and coordinate communication between government entities, law enforcement, institutions of higher education, the private sector and the public to improve cybersecurity preparedness. |
4. Product/Service Line
4.1 Product or Service
One way to mitigate the risks associated with cyber attacks on small businesses is to control the coverage area of the Wi-Fi signal. Cybercriminals unable to access a signal from a business are unable to carry out their malicious attack. It would make the hacker’s work a lot more difficult, as they would need to gain physical access to the inside of the building. By removing any Wi-Fi coverage from the outside of the building, this will deter the attacker to leave your business and move onto their next target.
Wireless Defender’s solution to this problem is a mono-directional antenna for the small business's router, and a Radio Frequency shielding panel to block any remaining signal. By using RF engineering technology, not only can you optimize your business for Wi-Fi coverage, but you can limit what areas are covered. We have conducted many experiments, in which we have taken the data, and used the research to refine the shield. Our patent-pending shielding material, along with a revolutionary RF-shielding fabric, will block all extraneous signals.
Wireless Defender’s solution to this problem is a mono-directional antenna for the small business's router, and a Radio Frequency shielding panel to block any remaining signal. By using RF engineering technology, not only can you optimize your business for Wi-Fi coverage, but you can limit what areas are covered. We have conducted many experiments, in which we have taken the data, and used the research to refine the shield. Our patent-pending shielding material, along with a revolutionary RF-shielding fabric, will block all extraneous signals.
4.2 Pricing Structure
Wireless Defender uses a bundle pricing structure, packaging products and services together at a discount to sell in bulk and create a more affordable single offering. Some positive effects of using this pricing structure is that it is a much simpler way of selling and delivering multiple products or services. However, a negative outcome of this structure is that it reduces the consumer’s freedom of choice in what exact products or services they’re buying.
We chose to sell different Wi-Fi security packages at three relative and differing price points. The Bronze Package features only our proprietary RF-blocking shield and Wi-Fi router. The Gold Package features our proprietary RF-blocking shield, Wi-Fi router, and professional installation and coverage survey. Finally, the Platinum Package features the RF-blocking shield, Wi-Fi router, professional installation and coverage survey, and our CyberDefense network monitoring software.
We chose to sell different Wi-Fi security packages at three relative and differing price points. The Bronze Package features only our proprietary RF-blocking shield and Wi-Fi router. The Gold Package features our proprietary RF-blocking shield, Wi-Fi router, and professional installation and coverage survey. Finally, the Platinum Package features the RF-blocking shield, Wi-Fi router, professional installation and coverage survey, and our CyberDefense network monitoring software.
Bronze Package |
Gold Package $259.99 |
Platinum Package $259.99 + $10/month |
229.99 |
259.99 |
259.99 |
per unit |
per unit |
+ $10/month per unit |
RF-Blocking Shield |
RF-Blocking shield |
RF-Blocking Shield |
Wi-Fi Router |
Wi-Fi Router |
Wi-Fi Router |
Professional Installation |
Professional Installation |
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Signal Coverage Survey |
Signal Coverage Survey |
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Network Monitoring Software |
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4.3 Product/Service Life Cycle
Wireless Defender Co. is still in the growth phase. After working diligently to test and refine our product, we are beginning to grow into a functioning business, and begin making sales. We expect to be in the expansion stage by the end of 2019, once all of our assets are in order, and once the company achieves an expected level of success.
4.4 Research and Development
In order to develop and refine the radio frequency blocking capabilities of our proprietary RF-blocking shield, We conducted two different experiments. The purpose of the first experiment was to understand how a 5 GHz radio frequency (RF) signal, more specifically a wireless fidelity (Wi-Fi) signal, is affected after passing through various materials that are well-known for their RF signal dampening qualities. This lab consists of two different experiments. The first experiment aimed to find the material(s) that block RF signals most effectively, and the second experiment test which orientation of the material is most effective at blocking RF signals. In both experiments, we collected data on two main variables: network speed and signal attenuation.
This series of experiments was automated using various programs, which have been built using the language Python, of which some used for data collection and information gathering, and some used for data analysis and visualization. Using a directional wireless antenna, the signal coverage, direction, and amplitude can all be easily controlled. We used the data that I collect to refine the development of a working prototype “shield” that effectively blocks Wi-Fi signals from potential cybercriminals.
This series of experiments was automated using various programs, which have been built using the language Python, of which some used for data collection and information gathering, and some used for data analysis and visualization. Using a directional wireless antenna, the signal coverage, direction, and amplitude can all be easily controlled. We used the data that I collect to refine the development of a working prototype “shield” that effectively blocks Wi-Fi signals from potential cybercriminals.
5. Financial Projections
5.1 Profit & Loss
Fiscal Year 1 |
Fiscal Year 2 |
Fiscal Year 3 |
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Sales |
$250,000 |
$750,000 |
$1,500,000 |
Cost/Goods Sold |
$199,291 |
$597,872 |
$1,195,743 |
Gross Profit |
$50,709 |
$152,128 |
$304,257 |
5.2 3-Year Profit/Revenue Projections
5.3 Profit Margins
Fiscal Year 1 |
Fiscal Year 2 |
Fiscal Year 3 |
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Net Profit (pre-tax) |
$50,709.00 |
$152,128.00 |
$304,257.00 |
Income Tax |
$6,744.29 |
$20,233.02 |
$40,466.18 |
Net Profit (post-tax) |
$43,964.71 |
$131,894.98 |
$263,790.82 |
5.4 Break Even Analysis
Product |
Bronze Package |
Gold Package |
Platinum Package |
Price per Unit |
$299.99 |
$259.99 |
$259.99 |
Variable Cost per Unit |
$152.79 |
$152.79 |
$152.79 |
Contribution Margin (CM) per Unit |
$77.20 |
$107.20 |
> $107.20 |
x Sales Mix Percentage |
40% |
10% |
50% |
Average CM per Unit |
$30.88 |
$10.72 |
$53.60 |
Sum of Average CM per Unit: $92.50
Fixed Costs (Total): $10,000.00
Fixed Costs (Total): $10,000.00
Bronze Package |
Gold Package |
Platinum Package |
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Break-Even Number of Units to Sell |
50 |
11 |
56 |
Product Sales in $ |
$11,499.50 |
$2,859.89 |
$14,559.44 |
Sum: Break-Even Sales in $ (USD): $28,918.83
5.5 Financial Assumptions
5.5.1 Assumptions for Profit & Loss Projections
We expect to experience an exponential growth rate in gross profit and revenue starting from the first fiscal year. We estimate that in the first year alone, we will sell 1,087 units, with a total net profit of $43,964.71 (see chart 6.3, Profit Margins). We believe with strategic marketing and shifting our focus onto the main problem of small business cybersecurity, we can upsell our initial predictions.
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5.5.2 Assumptions for Operating Expenses Projections
Any time a company is started, many unseen or unexpected expenses arise as the company grows and develops. We expect when the company grows to the sales margins of the late-2nd to early-3rd fiscal year, We will have to expand into a larger operational facility in order to manufacture, process, and ship orders. Other expenses may include fees from advertising agencies handling marketing campaigns, income taxes, and shipping fees.
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5.6 Start-Up Funds
This company will be funded through crowdsourcing, on the platform Kickstarter. This is a popular platform to raise money for startup technology companies, as they specialize in creative projects with a robust reward level feature. For example, if a person were to donate $5, they would get a mention on our website. If they were to donate $50, they would get a custom directional Wi-Fi antenna for their router. If they donated $200, they would receive our full Bronze Package. Additional rewards are available on the campaign page. With a platform of over 15 million supporters who have raised over $3 billion since the site’s inception, this would be a good place to not only raise awareness of the product, but will also generate enough sales to break even before the product is launched.
With crowdfunding through Kickstarter, there are platform fees involved in your fundraising campaign. A 5.0% platform fee and a payment fee of 3.0% + $0.20 will reduce profit margins, however I only hope to raise enough to meet my $29,000.00 break-even goal. Once I have gained Kickstarter’s approval on the fundraising of my company, I expect to meet this goal in just four months.
With crowdfunding through Kickstarter, there are platform fees involved in your fundraising campaign. A 5.0% platform fee and a payment fee of 3.0% + $0.20 will reduce profit margins, however I only hope to raise enough to meet my $29,000.00 break-even goal. Once I have gained Kickstarter’s approval on the fundraising of my company, I expect to meet this goal in just four months.