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Record Label Business Plan Overview

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22 views29 pages

Record Label Business Plan Overview

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Record Label Company

Business
Plan

Bring music to life

Prepared By 10200 Bolsa Ave, Westminster, CA, 92683

John Doe info@[Link]

(650) 359-3153 [Link]


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1.

Executive Summary
Introduction
Mission
Objectives
Keys to Success
Financial Highlights
Introduction
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Mission
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Objectives
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Keys to Success
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Financial Highlights
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3 Year profit forecast

Sales Gross Margin Net Profit


15.00k

10.00k

5.00k

0
Year1 Year2 Year3

Financial Year Sales Gross Margin Net Profit

Year1 10000 500 6000

Year2 12000 800 8000

Year3 14000 1200 10000


2.

Business Summary
Start-up Summary
Funding Required
Ownership
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Start-up Summary
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Startup cost

Amount
3.00k

2.00k

1.00k

0
Expenses Assets Investment

Cost distribution Amount

Expenses 1550

Assets 1800

Investment 2050

Funding Required
The detailed startup requirements and expenses are given in the table below.

START-UP FUNDING AMOUNT

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


START-UP FUNDING AMOUNT

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

Dexter Clinton $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

Ownership
Start Writing here...
3.
Products and
Services
Start Writing here...
4.

Market Analysis
Market Segmentation
Target Market Segment Strategy
Service Business Analysis
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Market Segmentation
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Market Analysis

Record Stores: 30.0 %

Consumers at live performances: 70.0 %

Financial Year Units Sold

Record Stores 30

Consumers at live performances 70

Potential Customers Growt Year 1 Year 2 Year 3 Year 4 Year 5 CAG


h R

Record stores 5% 23 24 25 26 27 4.09%

Consumers at live
7% 18,776 20,090 21,496 23,001 24,611 7.00%
performances

Total 7.00% 18,799 20,114 21,521 23,027 24,638 7.00%

Target Market Segment Strategy


Start Writing here...
Service Business Analysis
Start Writing here...

Competition and Buying Patterns


Start writing here...
5.

Strategy
Sales Strategy
Marketing Strategy
Competitive Edge
Milestones
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Sales Strategy
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Sales Forecast
Start writing here...

Sales Yearly

Record retailer sales Live concert record sales CD sales from website
Contract buy-outs

Year1

Year2

Year3

0 200.00k 400.00k 600.00k 800.00k 1.00M 1.20M 1.40M 1.60M

Financial Year Record retailer s… Live concert reco… CD sales from we… Contract buy-outs

Year1 895665 45000 78451 12354

Year2 1004512 24512 45784 45522

Year3 1245587 12458 41215 45112

Detailed Sales Forecast


Detailed sales forecast data is provided in below table:

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


SALES FORECAST YEAR 1 YEAR 2 YEAR 3

TOTAL SALES $0 $82,160 $143,766

Direct Cost of Sales

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

Marketing Strategy
Start Writing here...

Competitive Edge
Start Writing here...

Milestones

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.

Milestone Start Date End Date Budget Manager Department

Business
Business plan completion 1/1/2021 2/15/2021 $0 Dexter
Development

First compilation released 2/15/2021 5/1/2021 $0 Dexter Marketing

Second compilation
5/1/2021 9/15/2021 $0 Dexter Marketing
released

The first band signed 2/15/2021 10/30/2021 $0 Dexter Sales

First revenue stream 10/30/2021 2/28/2022 $0 Dexter Sales

Band representation
10/30/2021 6/30/2022 $0 Dexter Sales
currently full

Totals $0
6.

Web Plan Summary


Website Marketing Strategy
Development Requirements
Start Writing here...

Website Marketing Strategy


Start Writing here...

Development Requirements
Start Writing here...
7.

Management Plan
Personnel Plan
Start Writing here...

Personnel Plan
Start Writing here...

PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3

Dexter $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


8.

Financial Plan
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
Start Writing here...

Important Assumptions

The financial projections of the company are forecast on the basis of the following assumptions. These
assumptions are quite conservative and are expected to show deviation but to a limited level such that
the company’s major financial strategy will not be affected.

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10,00% 11,00% 12,00%

Long-term Interest Rate 10,00% 10,00% 10,00%

Tax Rate 26,42% 27,76% 28,12%

Other 0 0 0

Brake-even Analysis

Monthly Units Break-even 5530

Monthly Revenue Break-even $159 740

Assumptions:

Average Per-Unit Revenue $260,87

Average Per-Unit Variable Cost $0,89

Estimated Monthly Fixed Cost $196 410

Projected Profit and Loss

Year 1 Year 2 Year 3

Sales $309 069 $385 934 $462 799

Direct Cost of Sales $15 100 $19 153 $23 206

Other $0 $0 $0

TOTAL COST OF SALES $15 100 $19 153 $23 206

Gross Margin $293 969 $366 781 $439 593

Gross Margin % 94,98% 94,72% 94,46%


Year 1 Year 2 Year 3

Expenses

Payroll $138 036 $162 898 $187 760

Sales and Marketing and Other Expenses $1 850 $2 000 $2 150

Depreciation $2 070 $2 070 $2 070

Leased Equipment $0 $0 $0

Utilities $4 000 $4 250 $4 500

Insurance $1 800 $1 800 $1 800

Rent $6 500 $7 000 $7 500

Payroll Taxes $34 510 $40 726 $46 942

Other $0 $0 $0

Total Operating Expenses $188 766 $220 744 $252 722

Profit Before Interest and Taxes $105 205 $146 040 $186 875

EBITDA $107 275 $148 110 $188 945

Interest Expense $0 $0 $0

Taxes Incurred $26 838 $37 315 $47 792

Net Profit $78 367 $108 725 $139 083

Net Profit/Sales 30,00% 39,32% 48,64%


Profit Yearly

Profit
15.00k

10.00k

5.00k

0
Year1 Year2 Year3

Financial Year Profit

Year1 10000

Year2 12000

Year3 14000

Gross Margin Yearly

Gross Margin

Year1

Year2

0 1.00k 2.00k 3.00k 4.00k 5.00k 6.00k 7.00k 8.00k 9.00k 10.00k 11.00k 12.00k 13…

Financial Year Gross Margin

Year1 10000

Year2 12000
Projected Cash Flow

Cash Received Year 1 Year 2 Year 3

Cash from Operations

Cash Sales $40 124 $45 046 $50 068

Cash from Receivables $7 023 $8 610 $9 297

SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359

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 $47 143 $53 651 $55 359

Expenditures from Operations

Cash Spending $21 647 $24 204 $26 951

Bill Payments $13 539 $15 385 $170 631

SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582

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 $35 296 $35 489 $43 882

Net Cash Flow $11 551 $13 167 $15 683


Cash Received Year 1 Year 2 Year 3

Cash Balance $21 823 $22 381 $28 239


Projected Balance Sheet

Assets Year 1 Year 2 Year 3

Current Assets

Cash $184 666 $218 525 $252 384

Accounts Receivable $12 613 $14 493 $16 373

Inventory $2 980 $3 450 $3 920

Other Current Assets $1 000 $1 000 $1 000

TOTAL CURRENT ASSETS $201 259 $237 468 $273 677

Long-term Assets

Long-term Assets $10 000 $10 000 $10 000

Accumulated Depreciation $12 420 $14 490 $16 560

TOTAL LONG-TERM ASSETS $980 $610 $240

TOTAL ASSETS $198 839 $232 978 $267 117

Current Liabilities

Accounts Payable $9 482 $10 792 $12 102

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102

Long-term Liabilities $0 $0 $0

TOTAL LIABILITIES $9 482 $10 792 $12 102

Paid-in Capital $30 000 $30 000 $30 000

Retained Earnings $48 651 $72 636 $96 621

Earnings $100 709 $119 555 $138 401

TOTAL CAPITAL $189 360 $222 190 $255 020

TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117

Net Worth $182 060 $226 240 $270 420


Business Ratios

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 4,35% 30,82% 63,29% 4,00%

Percent of Total Assets

Accounts Receivable 5,61% 4,71% 3,81% 9,70%

Inventory 1,85% 1,82% 1,79% 9,80%

Other Current Assets 1,75% 2,02% 2,29% 27,40%

Total Current Assets 138,53% 150,99% 163,45% 54,60%

Long-term Assets -9,47% -21,01% -32,55% 58,40%

TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%

Current Liabilities 4,68% 3,04% 2,76% 27,30%

Long-term Liabilities 0,00% 0,00% 0,00% 25,80%

Total Liabilities 4,68% 3,04% 2,76% 54,10%

NET WORTH 99,32% 101,04% 102,76% 44,90%

Percent of Sales

Sales 100,00% 100,00% 100,00% 100,00%

Gross Margin 94,18% 93,85% 93,52% 0,00%

Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%

Advertising Expenses 2,06% 1,11% 0,28% 1,40%

Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%

Main Ratios

Current 25,86 29,39 32,92 1,63

Quick 25,4 28,88 32,36 0,84

Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%

Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%

Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%

Additional Ratios

Net Profit Margin 19,20% 21,16% 23,12% N.A.

Return on Equity 47,79% 50,53% 53,27% N.A.


Year 1 Year 2 Year 3 Industry Profile

Activity Ratios

Accounts Receivable Turnover 4,56 4,56 4,56 N.A.

Collection Days 92 99 106 N.A.

Inventory Turnover 19,7 22,55 25,4 N.A.

Accounts Payable Turnover 14,17 14,67 15,17 N.A.

Payment Days 27 27 27 N.A.

Total Asset Turnover 1,84 1,55 1,26 N.A.

Debt Ratios

Debt to Net Worth 0 -0,02 -0,04 N.A.

Current Liab. to Liab. 1 1 1 N.A.

Liquidity Ratios

Net Working Capital $120 943 $140 664 $160 385 N.A.

Interest Coverage 0 0 0 N.A.

Additional Ratios

Assets to Sales 0,45 0,48 0,51 N.A.

Current Debt/Total Assets 4% 3% 2% N.A.

Acid Test 23,66 27,01 30,36 N.A.

Sales/Net Worth 1,68 1,29 0,9 N.A.

Dividend Payout 0 0 0 N.A.


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