Start-up Funding | |
Start-up Expenses to Fund | $1,100 |
Start-up Assets to Fund | $98,900 |
Total Funding Required | $100,000 |
Assets | |
Non-cash Assets from Start-up | $15,000 |
Cash Requirements from Start-up | $83,900 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $83,900 |
Total Assets | $98,900 |
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 | |
Johnny | $100,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $100,000 |
Loss at Start-up (Start-up Expenses) | ($1,100) |
Total Capital | $98,900 |
Total Capital and Liabilities | $98,900 |
Total Funding | $100,000 |
Heavy Metal Praise Records, as the name implies, produces CDs of Heavy Metal Christian music groups.
The typical Heavy Metal Praise Records buyer is in the 13-22 year old age bracket–and is a direct result of the attitudes expressed by the label’s bands. The spirit of youth is the driving force of the label, offering proof that the energy of Heavy Metal Praise music exists beyond constraints and categorizations.
While Heavy Metal Praise Records hates to pigeonhole any of its artists’ musical sounds, it can be generalized that all the bands convey an in-your-face sound Christian music. This sound, when coupled with each band’s own creativity and inspiration, allows for the artists to maintain their identity while sharing the same energy, focus and often fan base with their label mates. Heavy Metal Praise Records is an artist-friendly label, priding itself on giving its bands complete artistic and creative freedom.
Heavy Metal music is the music of preference among boys and young men, ages 12-22, who are part of the skateboarding culture. Heavy Metal music generated $180 million dollars in sales last year.
Skateboarding has grown into an enormously popular recreational sport that generated 1/2 billion dollars in sales last year. Each year the base of skateboarder grows even larger. The sport is still enjoyed by young men in their thirties. In many cases, these older skateboarders still enjoy Heavy Metal music. This represents a huge market opportunity for Christian music.
Heavy Metal Praise Records will focus on two customer groups:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Early Teen Skateboarders | 10% | 3,000,000 | 3,300,000 | 3,630,000 | 3,993,000 | 4,392,300 | 10.00% |
Late Teen Skateboarders | 10% | 4,000,000 | 4,400,000 | 4,840,000 | 5,324,000 | 5,856,400 | 10.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 10.00% | 7,000,000 | 7,700,000 | 8,470,000 | 9,317,000 | 10,248,700 | 10.00% |
Heavy Metal Praise Records will use their competitive advantages in a new musical area of Christian music to steadily gain market share. The first advantage is based on Johnny’s extensive inside knowledge of the recording industry. The second advantage is an already established network of contacts within the industry.
Presently, there are few Christian Heavy Metal bands with CDs in the marketplace. The only real competition is the acceptance of the skateboard culture. Can a Heavy Metal group with a christian message gain a fan base? The success of a Heavy Metal band is dependent on its fan base and its live performances. If the energy is there, the fan base will grow and CD sales will follow.
Heavy Metal Praise Records understands that their bands must have the energy before the message will be heard.
Heavy Metal Praise Records has established the following Promotion and Distribution strategies.
The strategic alliance with the Coalition of Independent Music Stores (CIMS) and Straight Arrow holds great potential.
Our combined sales strategy of distributing our product online and in stores will result in the following first year sales goals:
The sales totals represent only six months of sales activity. The first six months will be focused on signing the bands and producing the recording.
The following table and chart presents specific sales forecasts by month, over the first year of development. Years two and three are cumulative totals only.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Online | $84,000 | $160,000 | $200,000 |
In Store | $154,000 | $380,000 | $500,000 |
Total Sales | $238,000 | $540,000 | $700,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Online | $4,200 | $8,000 | $10,000 |
In Store | $7,700 | $19,000 | $25,000 |
Subtotal Direct Cost of Sales | $11,900 | $27,000 | $35,000 |
Heavy Metal Praise Records will have several milestones:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Signing of Bands | 1/1/2001 | 3/1/2001 | $10,000 | JY | Owner |
Recording | 3/31/2001 | 6/30/2001 | $65,000 | JY | Owner |
CD Release | 6/30/2001 | 9/30/2001 | $40,000 | JY | Owner |
Totals | $115,000 |
Heavy Metal Praise Records is solely operated by Johnny Young. Johnny is a Christian music industry veteran with over 13 years of music ministry experience with extensive connections with producers and distributors. Johnny toured the USA with the CCM group “Seeds of Change” between 1991 and 1998. It was during this time that Johnny felt God calling him into a ministry that would usher in Heavy Metal music that was so powerful, so fresh…that people would sense the spirit of God and come to a realization that God desired each and every one of His creations to know Him intimately.
This will be a one person business for a while. Johnny’s planned salary is shown in the Personnel table below.
The following sections will outline the general financial assumptions, break-even analysis, profit and loss, cash flow, balance sheet and business ratios.
The following table shows some of the basic financial assumptions used in this business plan.
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 approximately $1,700 is needed in monthly revenue to break even. The Estimated Monthly Fixed Cost varies over the course of the first year, as seen in the P & L appendix table, and this figure is an average based on the first-year totals.
Break-even Analysis | |
Monthly Revenue Break-even | $17,022 |
Assumptions: | |
Average Percent Variable Cost | 5% |
Estimated Monthly Fixed Cost | $16,171 |
The following table will indicate projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $238,000 | $540,000 | $700,000 |
Direct Cost of Sales | $11,900 | $27,000 | $35,000 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $11,900 | $27,000 | $35,000 |
Gross Margin | $226,100 | $513,000 | $665,000 |
Gross Margin % | 95.00% | 95.00% | 95.00% |
Expenses | |||
Payroll | $27,000 | $35,000 | $42,000 |
Sales and Marketing and Other Expenses | $142,000 | $190,000 | $350,000 |
Depreciation | $3,000 | $3,000 | $3,000 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $0 | $0 | $0 |
Insurance | $6,000 | $8,000 | $10,000 |
Rent | $12,000 | $15,000 | $18,000 |
Payroll Taxes | $4,050 | $5,250 | $6,300 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $194,050 | $256,250 | $429,300 |
Profit Before Interest and Taxes | $32,050 | $256,750 | $235,700 |
EBITDA | $35,050 | $259,750 | $238,700 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $9,615 | $77,025 | $70,710 |
Net Profit | $22,435 | $179,725 | $164,990 |
Net Profit/Sales | 9.43% | 33.28% | 23.57% |
Heavy Metal Praise will begin with adequate investment to cover the beginning months of negative cash flow and, as shown below, have an overall increase in cash balance by the end of the first plan year.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $166,600 | $378,000 | $490,000 |
Cash from Receivables | $31,740 | $111,675 | $183,338 |
Subtotal Cash from Operations | $198,340 | $489,675 | $673,338 |
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 | $198,340 | $489,675 | $673,338 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $27,000 | $35,000 | $42,000 |
Bill Payments | $140,307 | $350,569 | $479,397 |
Subtotal Spent on Operations | $167,307 | $385,569 | $521,397 |
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 | $167,307 | $385,569 | $521,397 |
Net Cash Flow | $31,033 | $104,107 | $151,940 |
Cash Balance | $114,933 | $219,039 | $370,980 |
The following chart and table indicates balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $114,933 | $219,039 | $370,980 |
Accounts Receivable | $39,660 | $89,985 | $116,647 |
Inventory | $4,400 | $9,983 | $12,941 |
Other Current Assets | $15,000 | $15,000 | $15,000 |
Total Current Assets | $173,993 | $334,007 | $515,568 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $3,000 | $6,000 | $9,000 |
Total Long-term Assets | ($3,000) | ($6,000) | ($9,000) |
Total Assets | $170,993 | $328,007 | $506,568 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $49,658 | $26,947 | $40,518 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $49,658 | $26,947 | $40,518 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $49,658 | $26,947 | $40,518 |
Paid-in Capital | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($1,100) | $21,335 | $201,060 |
Earnings | $22,435 | $179,725 | $164,990 |
Total Capital | $121,335 | $301,060 | $466,050 |
Total Liabilities and Capital | $170,993 | $328,007 | $506,568 |
Net Worth | $121,335 | $301,060 | $466,050 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7929, Musical Groups and Artists, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 126.89% | 29.63% | 15.20% |
Percent of Total Assets | ||||
Accounts Receivable | 23.19% | 27.43% | 23.03% | 6.80% |
Inventory | 2.57% | 3.04% | 2.55% | 3.10% |
Other Current Assets | 8.77% | 4.57% | 2.96% | 33.90% |
Total Current Assets | 101.75% | 101.83% | 101.78% | 43.80% |
Long-term Assets | -1.75% | -1.83% | -1.78% | 56.20% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 29.04% | 8.22% | 8.00% | 38.30% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 23.30% |
Total Liabilities | 29.04% | 8.22% | 8.00% | 61.60% |
Net Worth | 70.96% | 91.78% | 92.00% | 38.40% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 95.00% | 95.00% | 95.00% | 0.00% |
Selling, General & Administrative Expenses | 84.69% | 61.33% | 71.13% | 75.30% |
Advertising Expenses | 13.45% | 7.41% | 7.14% | 2.90% |
Profit Before Interest and Taxes | 13.47% | 47.55% | 33.67% | 2.90% |
Main Ratios | ||||
Current | 3.50 | 12.39 | 12.72 | 1.22 |
Quick | 3.42 | 12.02 | 12.41 | 0.82 |
Total Debt to Total Assets | 29.04% | 8.22% | 8.00% | 61.60% |
Pre-tax Return on Net Worth | 26.41% | 85.28% | 50.57% | 2.90% |
Pre-tax Return on Assets | 18.74% | 78.28% | 46.53% | 7.40% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 9.43% | 33.28% | 23.57% | n.a |
Return on Equity | 18.49% | 59.70% | 35.40% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 1.80 | 1.80 | 1.80 | n.a |
Collection Days | 50 | 146 | 180 | n.a |
Inventory Turnover | 10.35 | 3.75 | 3.05 | n.a |
Accounts Payable Turnover | 3.83 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 43 | 25 | n.a |
Total Asset Turnover | 1.39 | 1.65 | 1.38 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.41 | 0.09 | 0.09 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $124,335 | $307,060 | $475,050 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.72 | 0.61 | 0.72 | n.a |
Current Debt/Total Assets | 29% | 8% | 8% | n.a |
Acid Test | 2.62 | 8.69 | 9.53 | n.a |
Sales/Net Worth | 1.96 | 1.79 | 1.50 | 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 | |||||||||||||
Online | 0% | $0 | $0 | $0 | $0 | $0 | $3,000 | $4,000 | $6,000 | $10,000 | $13,000 | $18,000 | $30,000 |
In Store | 0% | $0 | $0 | $0 | $0 | $0 | $3,000 | $10,000 | $12,000 | $18,000 | $25,000 | $36,000 | $50,000 |
Total Sales | $0 | $0 | $0 | $0 | $0 | $6,000 | $14,000 | $18,000 | $28,000 | $38,000 | $54,000 | $80,000 | |
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 | |
Online | $0 | $0 | $0 | $0 | $0 | $150 | $200 | $300 | $500 | $650 | $900 | $1,500 | |
In Store | $0 | $0 | $0 | $0 | $0 | $150 | $500 | $600 | $900 | $1,250 | $1,800 | $2,500 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $300 | $700 | $900 | $1,400 | $1,900 | $2,700 | $4,000 |
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 | ||
Owner | 0% | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Payroll | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
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 | $6,000 | $14,000 | $18,000 | $28,000 | $38,000 | $54,000 | $80,000 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $300 | $700 | $900 | $1,400 | $1,900 | $2,700 | $4,000 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $300 | $700 | $900 | $1,400 | $1,900 | $2,700 | $4,000 | |
Gross Margin | $0 | $0 | $0 | $0 | $0 | $5,700 | $13,300 | $17,100 | $26,600 | $36,100 | $51,300 | $76,000 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | 95.00% | |
Expenses | |||||||||||||
Payroll | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Sales and Marketing and Other Expenses | $5,000 | $5,000 | $5,000 | $5,000 | $45,000 | $22,000 | $7,000 | $7,000 | $4,000 | $3,000 | $2,000 | $32,000 | |
Depreciation | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Rent | $0 | $0 | $0 | $0 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Payroll Taxes | 15% | $0 | $300 | $300 | $300 | $300 | $300 | $300 | $450 | $450 | $450 | $450 | $450 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $5,750 | $8,050 | $8,050 | $8,050 | $49,550 | $26,550 | $11,550 | $12,700 | $9,700 | $8,700 | $7,700 | $37,700 | |
Profit Before Interest and Taxes | ($5,750) | ($8,050) | ($8,050) | ($8,050) | ($49,550) | ($20,850) | $1,750 | $4,400 | $16,900 | $27,400 | $43,600 | $38,300 | |
EBITDA | ($5,500) | ($7,800) | ($7,800) | ($7,800) | ($49,300) | ($20,600) | $2,000 | $4,650 | $17,150 | $27,650 | $43,850 | $38,550 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($1,725) | ($2,415) | ($2,415) | ($2,415) | ($14,865) | ($6,255) | $525 | $1,320 | $5,070 | $8,220 | $13,080 | $11,490 | |
Net Profit | ($4,025) | ($5,635) | ($5,635) | ($5,635) | ($34,685) | ($14,595) | $1,225 | $3,080 | $11,830 | $19,180 | $30,520 | $26,810 | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | -243.25% | 8.75% | 17.11% | 42.25% | 50.47% | 56.52% | 33.51% |
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 | $4,200 | $9,800 | $12,600 | $19,600 | $26,600 | $37,800 | $56,000 | |
Cash from Receivables | $0 | $0 | $0 | $0 | $0 | $0 | $60 | $1,880 | $4,240 | $5,500 | $8,500 | $11,560 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $0 | $4,200 | $9,860 | $14,480 | $23,840 | $32,100 | $46,300 | $67,560 | |
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 | $4,200 | $9,860 | $14,480 | $23,840 | $32,100 | $46,300 | $67,560 | |
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 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Bill Payments | $126 | $3,762 | $3,385 | $3,385 | $4,353 | $31,989 | $18,771 | $10,857 | $11,823 | $13,452 | $16,286 | $22,119 | |
Subtotal Spent on Operations | $126 | $5,762 | $5,385 | $5,385 | $6,353 | $33,989 | $20,771 | $13,857 | $14,823 | $16,452 | $19,286 | $25,119 | |
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 | $126 | $5,762 | $5,385 | $5,385 | $6,353 | $33,989 | $20,771 | $13,857 | $14,823 | $16,452 | $19,286 | $25,119 | |
Net Cash Flow | ($126) | ($5,762) | ($5,385) | ($5,385) | ($6,353) | ($29,789) | ($10,911) | $624 | $9,017 | $15,648 | $27,014 | $42,441 | |
Cash Balance | $83,774 | $78,012 | $72,627 | $67,242 | $60,889 | $31,100 | $20,189 | $20,813 | $29,830 | $45,478 | $72,491 | $114,933 |
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 | $83,900 | $83,774 | $78,012 | $72,627 | $67,242 | $60,889 | $31,100 | $20,189 | $20,813 | $29,830 | $45,478 | $72,491 | $114,933 |
Accounts Receivable | $0 | $0 | $0 | $0 | $0 | $0 | $1,800 | $5,940 | $9,460 | $13,620 | $19,520 | $27,220 | $39,660 |
Inventory | $0 | $0 | $0 | $0 | $0 | $0 | $700 | $1,000 | $1,100 | $1,540 | $2,090 | $2,970 | $4,400 |
Other Current Assets | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
Total Current Assets | $98,900 | $98,774 | $93,012 | $87,627 | $82,242 | $75,889 | $48,600 | $42,129 | $46,373 | $59,990 | $82,088 | $117,681 | $173,993 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $250 | $500 | $750 | $1,000 | $1,250 | $1,500 | $1,750 | $2,000 | $2,250 | $2,500 | $2,750 | $3,000 |
Total Long-term Assets | $0 | ($250) | ($500) | ($750) | ($1,000) | ($1,250) | ($1,500) | ($1,750) | ($2,000) | ($2,250) | ($2,500) | ($2,750) | ($3,000) |
Total Assets | $98,900 | $98,524 | $92,512 | $86,877 | $81,242 | $74,639 | $47,100 | $40,379 | $44,373 | $57,740 | $79,588 | $114,931 | $170,993 |
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 | $3,649 | $3,272 | $3,272 | $3,272 | $31,354 | $18,410 | $10,464 | $11,378 | $12,915 | $15,583 | $20,406 | $49,658 |
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 | $3,649 | $3,272 | $3,272 | $3,272 | $31,354 | $18,410 | $10,464 | $11,378 | $12,915 | $15,583 | $20,406 | $49,658 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $3,649 | $3,272 | $3,272 | $3,272 | $31,354 | $18,410 | $10,464 | $11,378 | $12,915 | $15,583 | $20,406 | $49,658 |
Paid-in Capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) |
Earnings | $0 | ($4,025) | ($9,660) | ($15,295) | ($20,930) | ($55,615) | ($70,210) | ($68,985) | ($65,905) | ($54,075) | ($34,895) | ($4,375) | $22,435 |
Total Capital | $98,900 | $94,875 | $89,240 | $83,605 | $77,970 | $43,285 | $28,690 | $29,915 | $32,995 | $44,825 | $64,005 | $94,525 | $121,335 |
Total Liabilities and Capital | $98,900 | $98,524 | $92,512 | $86,877 | $81,242 | $74,639 | $47,100 | $40,379 | $44,373 | $57,740 | $79,588 | $114,931 | $170,993 |
Net Worth | $98,900 | $94,875 | $89,240 | $83,605 | $77,970 | $43,285 | $28,690 | $29,915 | $32,995 | $44,825 | $64,005 | $94,525 | $121,335 |
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Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a music business plan, your marketing strategy and plan should include the following: Product: in the product section, you should reiterate the type of music that you documented in your Company Analysis.
Below is the sales projection for Clarkson Magic Finger® Music Production Company, it is based on the location of our business and other factors as it relates to record label start - ups in the United States; First Year-: $100,000. Second Year-: $250,000. Third Year-: $750,000.
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.
How to Write a Music Production Business Plan in 7 Steps: 1. Describe the Purpose of Your Music Production Business. The first step to writing your business plan is to describe the purpose of your music production business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
It can be used to create a music production company business plan, a business plan for a music artist, or business plans for a music teacher and/or music management. ... Once you create your plan, download it to PDF to show banks and investors. I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive ...
Writing an Effective Music Production Business Plan. The following are the key components of a successful music production business plan:. Executive Summary. The executive summary of a music production business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.
Executive Summary. Mt. Hood Records is an unusual but sustainable business model for a record label. The company has been founded by Hillary MacQuilliams as an Oregon registered LLC. The business operates to promote several Portland based bands, all with the common element of improvisation. Industry Analysis.
A music business plan is a comprehensive and detailed document that outlines the goals, strategies, and financial projections for a music-related business. Whether it's a record label, music production company, artist management firm, or any other music-related venture, a business plan provides a roadmap for success.
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.
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
The company will also hold pop-up stalls at consumer exhibitions. Production companies charge $3,000 to $50,000 depending upon the production project. The average fee is $26,500. The distribution cost is around $1,000 for each screen. The average distribution income is estimated at $50,000.
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.
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.
The post is a music production business plan sample that you can use as a template to easily create your own. Here is a sample business plan for starting an music recording and production business. BUSINESS NAME: Unbeatable Music Production Company. TABLE OF CONTENT. Executive Summary.
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.
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.
Our collection of business plan examples represent various facets of the music and entertainment sector, ranging from record labels and music production companies to entertainment venues and digital streaming services. Each plan is expertly crafted to address essential elements such as talent acquisition, content production, distribution ...
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.
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.
How to Structure A Music Business Plan A music business plan will have six main components. 1. A summary page 2. A description of your business 3. A marketing plan 4. An operations statement 5. A project time-line 6. Financial projections We will look at each in turn. You may want to make a rough outline for your own plan as you read this article.
Theatrical Music Producers Business Plan. Edgar Risk Ventures, Ltd. is a newly-formed Limited Liability Company providing high-level expertise in the music and performance production industry. Turn your love of music into a successful business. First, combine your knowledge with a good business plan. Start by looking at these sample business ...
This is the standard production company business plan outline, which will cover all important sections that you should include in your business plan. Executive summary. Market Validation. Objectives. Short-Term (1 -3 Years) Long Term (3-5 years) Mission statement. Unique Selling Proposition.
Explore a real-world music recording distribution business plan example and download a free template with this information to start writing your own business plan. ... Heavy Metal Praise Records is a recording business that will focus exclusively on Christian Heavy Metal music groups. 2.1 Company Ownership ... Other Production Expenses: $0 : $0 ...
Climate-related risks that have had or are reasonably likely to have a material impact on the registrant's business strategy, results of operations, or financial condition; The actual and potential material impacts of any identified climate-related risks on the registrant's strategy, business model, and outlook;