Start-up Funding | |
Start-up Expenses to Fund | $6,650 |
Start-up Assets to Fund | $21,350 |
Total Funding Required | $28,000 |
Assets | |
Non-cash Assets from Start-up | $2,000 |
Cash Requirements from Start-up | $19,350 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $19,350 |
Total Assets | $21,350 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Hillary MacQuilliams | $10,000 |
Family and Friends | $18,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $28,000 |
Loss at Start-up (Start-up Expenses) | ($6,650) |
Total Capital | $21,350 |
Total Capital and Liabilities | $21,350 |
Total Funding | $28,000 |
Mt. Hood Records is a new, Portland, Oregon based record label. Mt. Hood Records is taking a new, unusual approach to band promotion and CD sales. Instead of competing with the large, ultra competitive national record labels, as well with the larger Indie labels, Mt. Hood Records will adopt a regional, intimate approach where they concentrate on several local bands. By working with only a few bands at once, Mt. Hood Records is able to offer a much more specialized and attentive level of service for their bands. This will be their competitive edge, something no other record label can offer.
At the same time that the CDs provide visibility for the respective bands, it provides visibility for Mt. Hood Records. This is key for Mt. Hood Records’ business model. They need to be known as a hard working/promoting record label. This is important because the stronger the label appears, the more attractive the label becomes in terms of being an exclusive promoter for a band.
While the compilations CDs are released, Mt. Hood Records will be working with a variety of parties for networking purposes. The first is local radio stations. Being able to get air play for the CD depends on relationships with the key decision makers at the various stations. Mt. Hood Records will also be working with various record stores, developing relationships with them so that as some of the bands on the CDs become known and there is consumer interest, Mt. Hood Records can begin to sell the CDs. Lastly, Mt. Hood Records will be working with the different clubs to get the bands live gigs. Playing live to local crowds will be one of the most productive activities in terms of developing fanfare.
As the label becomes well known locally, it will become attractive for local acts looking to sign up with a record label. Mt. Hood Records will be looking to sign up a total of no more than five bands at any one time. This will allow Mt. Hood Records to offer specialized and intimate promotional assistance.
As the bands begin to sign on, the next tasks are to assist in the production of a studio CD for the band. Once the CD is cut key activities will be aimed at record sales and live show production. These are key activities as these are the sources of revenue for Mt. Hood Records, CD sales which occur at record stores as well as at the live shows.
Mt. Hood Records business model recognizes that there will be little to no revenue within the first year. First year revenue is being sacrificed for the building of a viable record label in future years.
Mt. Hood Records will not focus on a specific genre of music; that is difficult to do on a regional basis. It also creates competition at the local level between the bands within the same genre. Instead, Mt. Hood Records will focus on the element of improvisation which can be found in a wide range of genres. Improvisation can be described as adding free flow change or spontaneity to a performance. This occurs when a band is playing a pre-defined song, but certain or each member of the band deviates from the song, playing their own solo or rendition of the material. This occurs in the moment, in a spontaneous experimentation. This lends it elf to viewing a band’s performance multiple times, as no performance is the same. Improvisation also lets the musicians “shine,” it allows them to try new things, play around, have fun, and entertain the audience.
Mt. Hood Records will target two primary market segments, record stores and consumers at live shows. These will be the sources of income so they will be the main targets. Initially, Mt. Hood Records focus will be to develop visibility within the community, enough to be able to sign up bands which are the key to revenue generation. The need to sign up bands will drive the marketing activities that Mt. Hood Records will undertake in order to generate revenue in the future.
Mt. Hood Records has identified two target market segments which will be the main targeted customers.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Record stores | 5% | 23 | 24 | 25 | 26 | 27 | 4.09% |
Consumers at live performances | 7% | 18,776 | 20,090 | 21,496 | 23,001 | 24,611 | 7.00% |
Total | 7.00% | 18,799 | 20,114 | 21,521 | 23,027 | 24,638 | 7.00% |
Mt. Hood Records has chosen these two distinct market segments because they are the main source of revenue. Mt. Hood Records will remain focused on their important marketing activities aimed at developing visibility for the record label, however, ultimately it comes down to CD sales for business viability and the record stores and consumers at live performances being the source of this revenue. This is a fairly intimate industry, most of the industry participants within a region know each other. Keeping this in mind, networking will be the most efficient and effective activity. The only way to get into record stores is by showing potential record sales. The way you begin to do this is to have good contacts within the stores to get the right people to listen to you.
Another source of revenue will be the buy out of a band from their Mt. Hood contract in favor of a larger, national label. These events will not be marketed for, they will tend to occur on their own. This source of revenue is, however, tracked in the sales forecasts.
In general, the record industry, at least when based on overall sales, is a highly concentrated national industry. There are several huge international corporations that control the bulk of record sales. For bands looking to break through into national stardom and significant record sales, this is the distribution/promotion channel that they must concentrate on.
There are also the “Indie” labels which are broader than regional companies, but do not have the same breadth as a national player. The Indie labels can be quite large, they just tend to do business in less commercial ways. Many Indie labels can support national acts who are professional musicians.
Mt. Hood Records will leverage their competitive edge of low overhead and low band count ensuring intimate specialized care and promotion for the lucky few bands that it represents. Mt. Hood Records will employ a marketing strategy that concentrates on developing a large web of networks to assist the visibility of their label as well as developing visibility for the bands it represents. Mt. Hood Records will be extremely active in the local music scene as an effective way of plugging their bands. Lastly, Mt. Hood Records will have an aggressive sales strategy with the goal of getting as many record stores as possible to assist with sales of the various CDs as well as having a heavy live gig schedule as another outlet for CD sales.
Mt. Hood Records will employ a two pronged competitive edge. The first edge prong is having low overhead. Mt. Hood Records’ office will be in Hillary’s home. There is not an immediate need for offices, as all work can be transacted from her home office. Additionally, unlike many record labels, there will not be a recording studio to support. Significant costs are saved by renting studio time as needed. There appears to be no time in the foreseeable future that would dictate the need for a dedicated studio.
Mt. Hood Records will also use their other competitive edge prong by retaining a low band count. Mt. Hood Records will have five or less bands under contract at once. While this will reduce the chance of large records sales associated with having many different bands under their label, it does allow Mt. Hood Records to offer the bands it represents very specialized and intimate care. This is quite unusual in the industry. Most record labels have many different bands under contract; that is the nature of the industry. It is very difficult for a band to pick up a contract that differs from this arrangement.
Mt. Hood Records recognizes the opportunity to get away from the status quo and operate under the business philosophy that specialized customer care and attention is the best way to make money in the long term. Unless you have tons of marketing money volume is not the way to make sustainable profits. Each of Mt. Hood Records’ bands therefore receive far better plugging and placement. Anytime Mt. Hood Records is in a networking activity, they can plug all of their bands at once due to the small number.
This approach to specialized care can be seen in the athlete representation field. Two current great cyclists have adopted the approach, bucking the same trend within the athlete representation industry. Both Lance Armstrong and Kevin Livingston have both chosen contract representatives that only represent a couple of athletes instead of the norm by choosing a large company that has many different athletes in many sports represented at once. They have chosen this arrangement recognizing the more intimate care that they receive.
Mt. Hood Records’ marketing strategy recognizes the fact that the value in the label is intrinsically based on their reputation within the music community. Mt Hood Records needs to be known as a premier label, creating a compelling reason for bands to sign up with them.
Mt. Hood Records will develop their industry visibility through the release of the various compilation CDs. The goal of these CDs is to get the word out about Mt. Hood Records. This will assist in securing their initial bands. This will be done through aggressive networking. Mt. Hood Records will be in close contact to who’s who in the Portland music scene, for both retail recordings as well as within the live music scene.
Once a few bands have been secured, it then becomes Mt. Hood Records’ marketing strategy to plug the bands as much as possible. This again will be done by leveraging all of their networking contacts. One effective way that Mt. Hood Records will be marketing their bands is to line up as many live shows as possible. For a local scene, it is very important for the bands to be performing quite often, this is the fastest way that demand is generated within a specific community regarding a band. Once the shows have been lined up, Mt. Hood Records will almost always man a booth where the concert goers can buy CDs, learn more about the performing band, as well as providing more information about the other bands that they represent. While this takes time and effort, it is this passionate effort that will assist Mt. Hood Records in becoming a viable label, not immediately, but over time and hard work.
Other activities, as intuitive as they may seem are (not an exhaustive list):
Mt. Hood Records will also address the need to sell CDs at live performances. As mentioned earlier, CDs purchased at shows are, more often than not, impulse purchases. The viewer is impressed by the live performance of the band and in a show of support or a desire to have more material from the band they buy a CD. It is likely that other bands’ CDs will be sold by leveraging the goodwill of Mt. Hood Records. Studies indicate that consumers are more likely to experiment with new bands if the bands are found on a record label that the consumer is already familiar with and has confidence in. In essence it is using the positive halo effect of the label to sell other bands the label represents. This is further reinforced by the common element of improvisation that Mt. Hood Records represents. If the customer appreciates the element of improvisation then they are much more likely to try another improvisational band, especially when it comes with a “seal of approval” from the record label.
Sales will be slow initially. It is forecasted that the first two compilation CDs will be handed out for free. Sales revenue is not anticipated yet. By the third compilation Mt. Hood Records will have signed two bands and this will be the beginning of revenue generating CD sales. Once bands are signed, Mt. Hood Records’ legitimacy will be developed and they will be able to begin to generate revenue both on band CDs as well as the compilations.
Sales will also be generated through online website CD sales. Margins for the online sales are quite good because it eliminates the retail layer of the distribution channel. This will be Mt. Hood Records attempt to capture revenue from the powerful Internet sales channel.
An additional source of revenue is contract buyout. At some point there is the possibility that one or two of the bands will receive an offer from a larger record label for national distribution. In all of the band’s contracts there will be a buy out clause that will allow a larger label to buy out the contract. This is in recognition that Mt. Hood Records has limited distribution and if a band does indeed “make it” they will need to move onto a new label that has an established distribution system. Having this clause and the phenomenon of a band or two moving on is of value to Mt. Hood Records because it allows them in turn to sign on another new band. This is not expected or desired to be a huge revenue contributor initially. While Mt. Hood Records has no desire to completely cash in on a band moving to a national audience they will certainly make some money when a contract is bought out. However, it is not their goal that all bands will move on to larger labels.
Direct cost of goods includes:
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Record retailer sales | $0 | $28,090 | $39,076 |
Live concert record sales | $0 | $19,000 | $24,090 |
CD sales from website | $0 | $15,070 | $25,600 |
Contract buy-outs | $0 | $20,000 | $55,000 |
Total Sales | $0 | $82,160 | $143,766 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Record retailer sales | $0 | $11,236 | $15,630 |
Live concert record sales | $0 | $6,650 | $8,432 |
CD sales from website | $0 | $5,275 | $8,960 |
Contract buy-outs | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $23,161 | $33,022 |
Several milestones have been established and will act as a set of goals and a tracking mechanism for achieving the goals. While the milestones are initially static, they can be dynamic if needed. Please see the following table for detail regarding the milestones.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 1/1/2003 | 2/15/2003 | $0 | Hillary | Business Development |
First compilation released | 2/15/2003 | 5/1/2003 | $0 | Hillary | Marketing |
Second compilation released | 5/1/2003 | 9/15/2003 | $0 | Hillary | Marketing |
First band signed | 2/15/2003 | 10/30/2003 | $0 | Hillary | Sales |
First revenue stream | 10/30/2003 | 2/28/2004 | $0 | Hillary | Sales |
Band representation currently full | 10/30/2003 | 6/30/2004 | $0 | Hillary | Sales |
Totals | $0 |
Mt. Hood Records’ website will be an excellent source of information dissemination and CD sales.
The site will be linked to the various Portland entertainment guides such as Willamette Weekly. Mt. Hood Records will also submit the site to several different search engines. Lastly, the URL address will be prominent on all printed material and correspondence.
The site will be developed by a computer science student.
Hillary MacQuilliams first got her feet wet in music after college. After graduating with a Bachelor of Arts degree, Hillary and bandmates of 180 South decided to start their own record label to support a regional tour. The goal of the record label was primarily self-promotion and personal satisfaction. By creating their own label, they could release their one studio CD. They did not expect to generate profits from this, they saw it as an opportunity to support their tour with a CD. They toured for a month straight, throughout NY, PA, and NJ, playing almost every night, driving to the new venue during the day. The tour was quite an accomplishment, but it really did not make any money, just covered expenses.
Hillary then earned a J.D. degree from Lewis & Clark Law School in Portland, Oregon. During the summer of her first and second year she interned at the Department of Justice (DOJ), but was unable to find a job after graduation.
At this point she decuded that she could leverage per passion for music into a job, and once again start a record label. This time around she would be able to rely on her husband’s income for the household for the first year or two of her new business. Hillary recognized that in order to build a sustainable label she would have to forgo revenue and keep overhead low for the first year. If she could weather this financial burden she could make the business model work.
Hillary will be the primary employee. She will be working long hours, often with her husband’s help, but after some sweat equity, the business model will begin producing revenue. Hillary will not take a salary for the first two years in order to build the business. For year three she will draw a salary. Hillary will hire two other employees to assist her.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Hillary | $0 | $0 | $30,000 |
Sales | $0 | $12,000 | $13,000 |
Distribution | $1,600 | $12,000 | $13,000 |
Total People | 1 | 3 | 3 |
Total Payroll | $1,600 | $24,000 | $56,000 |
The following sections presents important financial information.
The following table lists important financial assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The Break-even Analysis indicates what is needed in monthly revenue to break even.
Break-even Analysis | |
Monthly Revenue Break-even | $1,502 |
Assumptions: | |
Average Percent Variable Cost | 0% |
Estimated Monthly Fixed Cost | $1,502 |
The following table and charts illustrated projected profit and loss.
Explanations for some line items:
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $0 | $82,160 | $143,766 |
Direct Cost of Sales | $0 | $23,161 | $33,022 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $0 | $23,161 | $33,022 |
Gross Margin | $0 | $59,000 | $110,744 |
Gross Margin % | 0.00% | 71.81% | 77.03% |
Expenses | |||
Payroll | $1,600 | $24,000 | $56,000 |
Sales and Marketing and Other Expenses | $13,500 | $14,500 | $15,500 |
Depreciation | $400 | $400 | $400 |
Rent | $0 | $4,000 | $4,000 |
Website expenses | $1,560 | $1,800 | $2,000 |
Utilities | $360 | $800 | $1,000 |
Insurance | $360 | $600 | $800 |
Payroll Taxes | $240 | $3,600 | $8,400 |
Returned CDs | $0 | $1,200 | $1,200 |
Total Operating Expenses | $18,020 | $50,900 | $89,300 |
Profit Before Interest and Taxes | ($18,020) | $8,100 | $21,444 |
EBITDA | ($17,620) | $8,500 | $21,844 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $2,430 | $6,433 |
Net Profit | ($18,020) | $5,670 | $15,011 |
Net Profit/Sales | 0.00% | 6.90% | 10.44% |
The following chart and table show the projected cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $0 | $20,540 | $35,942 |
Cash from Receivables | $0 | $61,620 | $107,825 |
Subtotal Cash from Operations | $0 | $82,160 | $143,766 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $0 | $82,160 | $143,766 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $1,600 | $24,000 | $56,000 |
Bill Payments | $15,595 | $48,234 | $70,690 |
Subtotal Spent on Operations | $17,195 | $72,234 | $126,690 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $17,195 | $72,234 | $126,690 |
Net Cash Flow | ($17,195) | $9,926 | $17,076 |
Cash Balance | $2,155 | $12,081 | $29,158 |
The following table presents the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $2,155 | $12,081 | $29,158 |
Accounts Receivable | $0 | $0 | $0 |
Inventory | $0 | $0 | $0 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $2,155 | $12,081 | $29,158 |
Long-term Assets | |||
Long-term Assets | $2,000 | $2,000 | $2,000 |
Accumulated Depreciation | $400 | $800 | $1,200 |
Total Long-term Assets | $1,600 | $1,200 | $800 |
Total Assets | $3,756 | $13,281 | $29,958 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $425 | $4,281 | $5,947 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $425 | $4,281 | $5,947 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $425 | $4,281 | $5,947 |
Paid-in Capital | $28,000 | $28,000 | $28,000 |
Retained Earnings | ($6,650) | ($24,670) | ($19,000) |
Earnings | ($18,020) | $5,670 | $15,011 |
Total Capital | $3,330 | $9,000 | $24,011 |
Total Liabilities and Capital | $3,756 | $13,281 | $29,958 |
Net Worth | $3,330 | $9,000 | $24,011 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Music recording and distribuiting industry NAICS code 512220, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 0.00% | 74.98% | -22.55% |
Percent of Total Assets | ||||
Accounts Receivable | 0.00% | 0.00% | 0.00% | 16.48% |
Inventory | 0.00% | 0.00% | 0.00% | 21.02% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 31.62% |
Total Current Assets | 57.39% | 90.96% | 97.33% | 69.12% |
Long-term Assets | 42.61% | 9.04% | 2.67% | 30.88% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 11.32% | 32.24% | 19.85% | 25.08% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 16.76% |
Total Liabilities | 11.32% | 32.24% | 19.85% | 41.84% |
Net Worth | 88.68% | 67.76% | 80.15% | 58.16% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 0.00% | 71.81% | 77.03% | 29.18% |
Selling, General & Administrative Expenses | 0.00% | 64.91% | 66.59% | 10.66% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.44% |
Profit Before Interest and Taxes | 0.00% | 9.86% | 14.92% | 5.25% |
Main Ratios | ||||
Current | 5.07 | 2.82 | 4.90 | 2.54 |
Quick | 5.07 | 2.82 | 4.90 | 1.38 |
Total Debt to Total Assets | 11.32% | 32.24% | 19.85% | 49.40% |
Pre-tax Return on Net Worth | -541.06% | 89.99% | 89.31% | 6.25% |
Pre-tax Return on Assets | -479.79% | 60.98% | 71.58% | 12.35% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 0.00% | 6.90% | 10.44% | n.a |
Return on Equity | -541.06% | 63.00% | 62.52% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 0.00 | 0.00 | 0.00 | n.a |
Collection Days | 0 | 0 | 0 | n.a |
Inventory Turnover | 0.00 | 0.00 | 0.00 | n.a |
Accounts Payable Turnover | 37.66 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 16 | 26 | n.a |
Total Asset Turnover | 0.00 | 6.19 | 4.80 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.13 | 0.48 | 0.25 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $1,730 | $7,800 | $23,211 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | n.a. | 0.16 | 0.21 | n.a |
Current Debt/Total Assets | 11% | 32% | 20% | n.a |
Acid Test | 5.07 | 2.82 | 4.90 | n.a |
Sales/Net Worth | 0.00 | 9.13 | 5.99 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Record retailer sales | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Live concert record sales | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
CD sales from website | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Contract buy-outs | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Record retailer sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Live concert record sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
CD sales from website | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Contract buy-outs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Hillary | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Sales | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Distribution | 0% | $0 | $0 | $800 | $0 | $0 | $800 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 1 | 1 | 2 | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | |
Total Payroll | $0 | $0 | $800 | $0 | $0 | $800 | $0 | $0 | $0 | $0 | $0 | $0 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Expenses | |||||||||||||
Payroll | $0 | $0 | $800 | $0 | $0 | $800 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales and Marketing and Other Expenses | $250 | $5,500 | $250 | $250 | $5,500 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Depreciation | $33 | $33 | $33 | $33 | $33 | $33 | $33 | $33 | $33 | $33 | $33 | $33 | |
Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Website expenses | $130 | $130 | $130 | $130 | $130 | $130 | $130 | $130 | $130 | $130 | $130 | $130 | |
Utilities | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | |
Insurance | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | $30 | |
Payroll Taxes | 15% | $0 | $0 | $120 | $0 | $0 | $120 | $0 | $0 | $0 | $0 | $0 | $0 |
Returned CDs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $473 | $5,723 | $1,393 | $473 | $5,723 | $1,393 | $473 | $473 | $473 | $473 | $473 | $473 | |
Profit Before Interest and Taxes | ($473) | ($5,723) | ($1,393) | ($473) | ($5,723) | ($1,393) | ($473) | ($473) | ($473) | ($473) | ($473) | ($473) | |
EBITDA | ($440) | ($5,690) | ($1,360) | ($440) | ($5,690) | ($1,360) | ($440) | ($440) | ($440) | ($440) | ($440) | ($440) | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($473) | ($5,723) | ($1,393) | ($473) | ($5,723) | ($1,393) | ($473) | ($473) | ($473) | ($473) | ($473) | ($473) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $0 | $0 | $800 | $0 | $0 | $800 | $0 | $0 | $0 | $0 | $0 | $0 | |
Bill Payments | $15 | $615 | $5,519 | $556 | $615 | $5,519 | $556 | $440 | $440 | $440 | $440 | $440 | |
Subtotal Spent on Operations | $15 | $615 | $6,319 | $556 | $615 | $6,319 | $556 | $440 | $440 | $440 | $440 | $440 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $15 | $615 | $6,319 | $556 | $615 | $6,319 | $556 | $440 | $440 | $440 | $440 | $440 | |
Net Cash Flow | ($15) | ($615) | ($6,319) | ($556) | ($615) | ($6,319) | ($556) | ($440) | ($440) | ($440) | ($440) | ($440) | |
Cash Balance | $19,335 | $18,720 | $12,401 | $11,845 | $11,230 | $4,911 | $4,355 | $3,915 | $3,475 | $3,035 | $2,595 | $2,155 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $19,350 | $19,335 | $18,720 | $12,401 | $11,845 | $11,230 | $4,911 | $4,355 | $3,915 | $3,475 | $3,035 | $2,595 | $2,155 |
Accounts Receivable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Inventory | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $19,350 | $19,335 | $18,720 | $12,401 | $11,845 | $11,230 | $4,911 | $4,355 | $3,915 | $3,475 | $3,035 | $2,595 | $2,155 |
Long-term Assets | |||||||||||||
Long-term Assets | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Accumulated Depreciation | $0 | $33 | $67 | $100 | $133 | $167 | $200 | $233 | $266 | $300 | $333 | $366 | $400 |
Total Long-term Assets | $2,000 | $1,967 | $1,933 | $1,900 | $1,867 | $1,834 | $1,800 | $1,767 | $1,734 | $1,700 | $1,667 | $1,634 | $1,600 |
Total Assets | $21,350 | $21,302 | $20,654 | $14,301 | $13,712 | $13,064 | $6,712 | $6,122 | $5,649 | $5,176 | $4,702 | $4,229 | $3,756 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $425 | $5,500 | $541 | $425 | $5,500 | $541 | $425 | $425 | $425 | $425 | $425 | $425 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $425 | $5,500 | $541 | $425 | $5,500 | $541 | $425 | $425 | $425 | $425 | $425 | $425 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $425 | $5,500 | $541 | $425 | $5,500 | $541 | $425 | $425 | $425 | $425 | $425 | $425 |
Paid-in Capital | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 |
Retained Earnings | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) | ($6,650) |
Earnings | $0 | ($473) | ($6,197) | ($7,590) | ($8,063) | ($13,787) | ($15,180) | ($15,653) | ($16,126) | ($16,600) | ($17,073) | ($17,546) | ($18,020) |
Total Capital | $21,350 | $20,877 | $15,153 | $13,760 | $13,287 | $7,564 | $6,170 | $5,697 | $5,224 | $4,750 | $4,277 | $3,804 | $3,330 |
Total Liabilities and Capital | $21,350 | $21,302 | $20,654 | $14,301 | $13,712 | $13,064 | $6,712 | $6,122 | $5,649 | $5,176 | $4,702 | $4,229 | $3,756 |
Net Worth | $21,350 | $20,877 | $15,153 | $13,760 | $13,287 | $7,563 | $6,170 | $5,697 | $5,224 | $4,750 | $4,277 | $3,804 | $3,330 |
Fill-in-the-blanks and automatic financials make it easy.
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Artists of all stripes grapple with the struggle of art versus commerce. We need time to make music and concoct our visions, but we also need to eat, pay the rent, and have clothes to wear. Musicians who become famous when they are young often have to learn business acumen and skills as they go along, usually learning the price of ignorance by being ripped off.
For those of us on ground level, having a plan can mean the difference between being able to make a living as a musician and being a weekend warrior with a day job for eternity. Here are a few suggestions on how to make a business plan as a musician. The most important suggestion: take it one step at a time! This kind of work can be overwhelming for creatives. I left my last day job by working on a business plan 15 minutes a day at lunch for a year. Slow and steady wins the race!
There’s a ton of resources online — including articles, courses, and software you can purchase — to help write a business plan. But where to begin? A good place to start is to define what a business plan is and why you might need one.
A business plan is an outline of your goals, the practical methods you will take to achieve them, and the resources that you have and will need. The plan will help you take your goals from disembodied ideas to concrete actions.
There’s a number of reasons to have a business plan, not the least of which is the basic idea that planning always helps. When you go to the grocery store, you go with a list. When you head on a cross-country drive from New York to California, you plan your route. Having a business plan will give you clarity, focus, and a sense of forward motion in your music career by identifying realistic, achievable, and action-based short-term goals.
It’s also worth noting that you will absolutely need a business plan if you seek to attract investors or loans. It can also help to show potential managers, booking agents, and record labels that you are serious about what you’re doing. There is value in making long-term (10 year), medium-term (five year), and short-term (one year) business plans. You might also want to make a business plan for a specific project/album to have structure for the process from recording to releasing to marketing.
Writing a business plan requires research. You’ll need to understand your audience, your market, and where/how you will find resources and people to join your professional team. If you’re writing the plan for yourself, this step is still important to provide guidance and clarity. If you are writing a business plan to attract investment, a thorough understanding of your field and your plan is crucial.
First, you need to clarify your vision and craft a mission statement. Who are you, what do you want to do, and why? These are weighty questions and worth pondering in depth: the clearer you are about who you are as an artist, the easier it will be to explain what you do to others and sell your project/products. The mission statement doesn’t have to be long, just a short paragraph describing who you are as an artist and what you are trying to achieve.
There is no set business model for a career in music, but there are some essential components to any business plan, and no matter what your objectives or what kind of outline you use, it’s a good idea have the following categories included.
Executive summary. You should actually write this after you’ve finished the entire plan. This is a one page summary of your business plan that includes an introduction, a description of your project/goals, an account of the funding you have and/or are seeking, and a synopsis of your plans for implementation. This will be the first thing prospective investors read, so it’s important to make it thorough and compelling.
Analysis of your audience. It’s a bad idea to try to appeal to everyone. To define your demographic, start by understanding who comes to your shows. What is the gender breakdown, age, and geographical location of your fans generally? What other artists do they listen to? How do they purchase music? What other events do they attend? Where do they shop and could you work with those retail outlets on cross-promotion?
SWOT analysis. This is a standard part of any business plan in any field. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The first two categories, Strengths and Weaknesses, are internal to your music and music business: they are things you can control. For example, the people on your creative/business teams, musical skills and abilities, your location.
The second two categories, Opportunities and Threats, are external, based on what happens in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples would include recordings and success of your competitors, prices of gear and equipment, and technology shifts (streaming vs physical product). Most SWOT analysis templates would have you list at least three items per category. Once completed, this will provide new perspectives on ways you can leverage what you already possess to take advantage of opportunities and protect yourself from marketplace threats.
Marketing plan. Creating a comprehensive marketing plan is a separate exercise requiring as much research and detail as a full business plan itself! For the purposes of the business plan, though, you will at least need to demonstrate awareness of your market and have an idea of some solid steps you are going to take to generate revenue and get your products and services into the marketplace.
What kinds of promotion will you do? What will it cost? What kind of return do you expect to achieve on your marketing investment? How will you track your progress? All these questions should have answers within your business plan. The music business specifics you’ll want to address in this section are your web page, your social media plans, touring, radio promotion, press kit, what merchandise you’ll sell, what your logo will look like, etc. Get as detailed as possible; your plans may change once you begin to execute, but if you have a blueprint, your chances of success will be much higher.
Financials. There should be detailed financial breakdowns of your estimated income and expenses. It’s not important that you have a lot of money to start with; you need to show how judiciously you would use investment funds and what kind of return you would expect you and your investors to get. If you’re doing a recording project, you should have a clear breakdown of all the costs involved in the recording, mixing, mastering, and replication processes. This section will likely require significant research. Include a category for legal expenses, as it’s vital to copyright your songs and trademark your logo. The better your estimates are of income and expenses, the easier following your plan will be, so be thorough!
Metrics. You are going to need to demonstrate to investors (and yourself) how you will measure your progress. Will you have weekly or monthly check-ins with your business team for accountability? Social media accounts and websites have multiple analytical tools to measure page hits, likes, demographic info of your fans, and where your page/account can improve. If you choose to advertise on Facebook or Google, there are tools to track the progress of those as well. Use them. Set yourself a very specific timetable and make yourself accountable to someone else, even if you are not seeking investors and just doing this for yourself.
In any creative business plan, you should have multiple revenue streams. Business coach Gary Ryan Blair suggests that anybody in business for themselves should have at least 10 revenue streams at all times. This ensures that if one stream dries up, another can cover the gap until you rebuild it. In writing your business plan, you’ll examine your skills and abilities (SWOT analysis) and figure out where those revenue streams could come from.
In looking for those 10 revenue streams, keep the definition of what you do broad. One of my heroes and good friends, the artist Rex Ray, was an artist, a teacher, a graphic designer, and designer of housewares (wallpaper, rugs, furniture). He straddled the line between art and commerce better than anyone I know. He designed album covers, book covers, rock posters, and also made high art that hangs in museums. He followed his interests and saw how he could contribute and also survive as an artist.
There are multiple options out there for a business plan framework. LivePlan is an excellent piece of software, and there are books available, including Business Plans For Dummies which also offers a kit you can purchase with templates to craft plans. Find something that works within your budget. The format you use is irrelevant as long as it is comprehensive and detailed.
As Casey Kasem, the great DJ who hosted American Top 40 for many years, would say: “Keep your feet on the ground and keep reaching for the stars.” Dream big, but think practically and build a business plan. Break down your goals into smaller, more achievable goals. Become clear on what the costs will be. You’ll find that the very act of creating a business plan will set things in motion and center you in a place of clarity. This opens the door for synchronicity and fate to intervene. But it all starts with formulating and having a plan.
Chris Huff has been a professional singer, multi-instrumentalist, songwriter, and producer for over 20 years. He has worked as a sideman with Peter Yarrow (Peter, Paul, and Mary), Echo and the Bunnymen, Chuck Hammer (David Bowie, Lou Reed), and Tom Kitt (Broadway composer of Next To Normal). Chris also wrote liner notes for David Bowie’s Live And Well CD, and has two full-length albums of original music available on iTunes .
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5 thoughts on “ writing a business plan for your music career ”.
this is just like starting any type of business, isn’t it ? Even though as a new old musician I don`t think of being a business person. How many people start in business for themselves without a business plan. This article opens my eyes about how far I want to go in music & the ground steps. thanks
Really good post! Thanks so much for sharing this.
Great mr thanks for your good handover, all the best
Amazing Post Chris, Very helpful for Musician. I am also a musician i learnt a lot also having difficulties to break through into the industry why because i don’t have manager and publisher’s. So I manage it all alone for now. But in future, I am definitely going to expand business.
Every successful career came up with a good plan. Thanks for this informative information. Well done!
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The Biden campaign has attacked Donald J. Trump’s ties to the conservative policy plan that would amass power in the executive branch, though it is not his official platform.
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Donald J. Trump has gone to great lengths to distance himself from Project 2025, a set of conservative policy proposals for a future Republican administration that has outraged Democrats. He has claimed he knows nothing about it or the people involved in creating it.
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IMAGES
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Starting a recording studio business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.. 1. Develop A Recording Studio Business Plan - The first step in starting a business is to create a detailed recording studio business plan that outlines all aspects of the venture.
How To Write a Music Business Plan. Your music business plan should include 10 sections as follows: ... This type of music business sells music that has been recorded in a studio. Music Licensing - This type of music business licenses music for films, TV shows, video games, advertisements, online videos, etc.
The written part of a recording studio business plan usually consists of 7 comprehensive sections. Let's have a look at them. 1. The executive summary. When writing an executive summary for a recording studio business plan, it is important to provide an overview of the business, the market, and key financials.
12/15/2022 - Finalize personnel and staff employment contracts for the Musicians First Studio management team. 1/1/2023 - Begin build-out of the studio, purchase equipment, and test the acoustics. 1/15/2023 - Begin networking at industry events and implement the marketing plan.
A free example of business plan for a recording studio. Here, we will provide a concise and illustrative example of a business plan for a specific project. This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not ...
Let's dive in and explore the key components of a recording studio business plan that will help you create good music and produce high-quality audio. 1. Microphones, Headphones, and Audio Interfaces. Having the right microphones is crucial. Different types of microphones serve various purposes in a recording studio.
How to Write a Recording Studio Business Plan in 7 Steps: 1. Describe the Purpose of Your Recording Studio Business. The first step to writing your business plan is to describe the purpose of your recording studio business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
Business Description. Harmony Haven Music Studio, nested in the vibrant heart of California's bustling music scene, stands as a beacon for music enthusiasts, aspiring artists, and seasoned musicians alike. This music studio, offering an eclectic mix of services ranging from personalized music lessons to state-of-the-art recording facilities, has quickly become a cornerstone of the local music ...
A solid business plan must include detailed financial information such as projected income, expenses, cash flow, and balance sheets. It is essential to include revenue forecasts for your recording studio. A relevant and credible revenue forecast is vital for your business plan to appear solid when read by investors.
Here are a few tips for writing the market analysis section of your music production business plan: Conduct market research, industry reports, and surveys to gather data. Provide specific and detailed information whenever possible. Illustrate your points with charts and graphs. Write your business plan keeping your target audience in mind. 4.
1. Perform market analysis. Embarking on the journey of starting a recording studio business begins with a thorough market analysis. Understanding the landscape of the recording industry, local demand, competition, and potential client demographics is critical for tailoring your services and carving out a niche.
The cost for equipping the music studio with the required gadgets - $100,000. The Cost of Launching your official Website - $600. Budget for paying at least 5 employees for 3 months and utility bills - $100,000. Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) - $2,500.
Growing. Commitment. Flexible. These are the key elements to think about when starting your recording studio: Niche — Decide on the types of services you will offer, such as recording, mixing, mastering, production, and rehearsal space rental. Studio space — Choose a suitable location with adequate space for recording, mixing, and mastering.
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a recording studio business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of recording studio company that you documented in your company overview.
As the music industry continues to grow, there is a high demand for quality recording studios. However, starting a profitable music production business can be challenging. In this article, we will provide tips and strategies on how to create a comprehensive business plan for a successful recording studio. From choosing the right location, to selecting equipment and hiring staff, we will cover ...
This 25-page music business plan is fully written and includes example verbiage from a musician. Use it as a template to write your own. Get The Template. Creative entrepreneurs have a responsibility to themselves (and their families where applicable) to make good financial decisions for their present and their future.
The main components of a music business plan. The content of your music business plan will vary depending upon whether you're aiming to start a music school, be a producer, or work as an artist. But the fundamental components are the same either way. Here's what you'll need: Mission Statement. Executive Summary.
Create your own business plan. Company Summary. Mt. Hood Records is a start-up organization that has been founded as an Oregon based L.L.C. The founder is Hillary MacQuilliams. The company was founded in January 2003. 2.1 Company Ownership. The company has been founded and is primarily owned by Hillary MacQuilliams.
Preparation for Writing the Business Plan: • Consider the reader and objectives. • Research all elements of the business plan. • Write the business plan yourself. • Develop an outline of key sections. • Use realistic financial projections. • Gain feedback. 1. Executive Summary.
In this video I will be explaining how to draft a business plan for your music recording studio. If you are looking to open up a recording studio, working as...
This is a one page summary of your business plan that includes an introduction, a description of your project/goals, an account of the funding you have and/or are seeking, and a synopsis of your plans for implementation. This will be the first thing prospective investors read, so it's important to make it thorough and compelling.
The Biden campaign has attacked Donald J. Trump's ties to the conservative policy plan that would amass power in the executive branch, though it is not his official platform. By Simon J. Levien ...