Recording studio business plan
The word "musician" is associated with a dreamy, sublime, spiritualized person. But it is quite possible that a person who is well versed in musical instruments will have an entrepreneurial streak, a practical mind and a business acumen. Why don't he combine all his abilities and organize a business that he likes and will bring income. We offer a rough business plan for a musical instrument store.
Musical instruments are a specific and expensive product, so a good start-up capital is needed to purchase the first batch of products. In order not to scare off potential buyers with high price tags, we will purchase products not from intermediaries, but from direct suppliers. Then, with a markup of 100% on the cost, our prices will be more profitable than those of our competitors.
The main advantage of our product is not design, but quality, so we will give preference to brands that have been popular for many years, for example, Gibson and Fender guitars. But expensive products are more suitable for professionals who will be able to appreciate them. As clients, we also plan to attract self-taught amateurs, students of music schools, circles. This means that among our products we will also have cheaper goods from non-branded manufacturers.
After studying the market for musical instruments, we came to the conclusion that the greatest demand from buyers is currently used by guitars, drums and keyboards. Initially, we will sell these three types of goods and accessories to them. In the future, it is planned to expand the assortment with other string, wind and folk instruments.
In addition to acoustic guitars, there will be electric guitars and combos for them, as well as bass ones. The drums will feature cymbals, snares, bass drums and kits. Since grand pianos and pianos will take up a lot of space in the hall and are not in great demand, keyboards will be represented by synthesizers. Moreover, it is they who are most popular among the tools of this type, since other options are difficult to transport and place at home.
In the section of related products, there will be collections of music, tutorials for playing various instruments, picks, strings, music stands, pickups, stands. All this product has great liquidity, so you can make a markup on it more than on instruments.
It is planned to spend 5,000,000 rubles for the purchase of the initial batch of goods, 2,000,000 of which we will take on credit at 15% for a period of 5 years.
Starting a Business
For registration of our case, we choose the form of individual entrepreneur, since this type of trading activity allows this type of registration. This will allow us to save time and money for starting a business, simplify accounting and tax reporting.
Our own recording studio, opened in a provincial Russian city with a population of up to half a million people, can bring a good income to an entrepreneur - in our time, this is not a utopia, but a reality. The services of such studios are used not only by professional musicians, but also by advertising agencies to record the sound design of commercials. Individuals also often require the services of professional sound engineers to mix, say, an author's song for the anniversaries of relatives, friends or work colleagues. The target audience is quite diverse, and the business plan of a recording studio with calculations presented here will help a novice entrepreneur to organize this business as competently as possible, avoiding many problems and mistakes.
You can open your own recording studio by keeping the initial cost of 600,000 rubles. This amount is optimal for the studio to have the functionality that allows you to produce various types of sound recording at a professional level. More than half of the initial investment can be covered by taking a bank loan, and the rest of the "finish off" from the entrepreneur's personal funds.
The business of organizing a music studio, an example of which is presented here, is best registered in the form of an individual entrepreneur. The optimal form of taxation is the simplified tax system (simplified taxation system) with a tax rate of 15% of the difference between income and expenses. One of the main advantages of this taxation system is the simple registration of tax returns, which a businessman can cope with without resorting to the help of a professional accountant. As a last resort, you can use the services of a third-party accountant, but it is completely optional to hire him as a permanent studio employee.
To register a recording studio, select the following OKVED codes:
- 59. 0 “Activities in the field of sound recording and publishing of musical works”.
- 59. 0. "Publication of audiovisual works on magnetic, electronic and digital media."
- 59. 0. "Activity of recording studios".
The range of services that a recording studio can provide is quite diverse. Some of them are:
- Recording and mixing of individual songs and entire music albums.
- Record soundtrack for commercials.
- Create music mixes.
- Mastering and remastering of music tracks.
- Arrangement of musical compositions.
- Scoring of various audio and video clips.
Subsequently, it will be possible to improve the quality of the above services by purchasing new, more advanced equipment. However, in a provincial city, this need is unlikely to arise in the foreseeable future.
How much to invest in opening
The main question that interests any businessman: how much will the costs pour out at the very beginning of the establishment of a business? Recording studio answer - below:
As can be seen from the above calculations, the main item of expenses for opening a recording studio will be the purchase of professional equipment. Its cost "eats up" exactly half of the initial budget. This is quite normal, since the level of services provided and, accordingly, the number of potential customers largely depends on the quality of the equipment. And this is far from the limit: large studios purchase equipment that costs hundreds of thousands of dollars.
The article will consider the peculiarities of retail trade in the field of musical equipment using the example of a business plan for a musical instrument store. It is a highly profitable business that assumes the satisfaction of the current demand from the part of the population engaged in music on an amateur or professional level. Unfortunately, music schools are not as popular now as they were in Soviet times, but the demand for such products exists, it is constant and depends little on seasonality.
Successful entrepreneurial endeavors will require a significant amount of work, select suppliers, form an assortment and calculate a pricing policy that provides the required profitability in conjunction with the required amount of demand.
Convenience of a music store business plan as a design tool
The multidimensionality of different types of commercial activities imposes a significant level of requirements on new players. To open and develop your business requires a lot of time and resources at the design stages. To optimize these costs, you need to use the right tools, such as a musical instrument store business plan.
It is he who, often, is the way to solve many problems of pre-project and project activities that start-up entrepreneurs face. Its content and form fully meet modern economic requirements and make it possible to compose a high-quality and complete description for any type of commercial undertaking.
Sample Musical Instrument Store Business Plan
Table of Contents
Key project characteristics and stages of business implementation
The trading company will include several thematic sections dedicated to various types of tools and equipment, zoned according to the level of professional preferences of clients.
The success and achievement of the goals of the business plan for a musical instrument store implies the high-quality implementation of the following stages of the company's core business:
Some types of business training are just getting started. One of them is classes in music schools. Many aspiring entrepreneurs are thinking about opening such an establishment. To do this, you need to familiarize yourself with all the organizational and financial aspects, after which you need to draw up a business plan for the future music school.
What should a music school business plan include?
When developing a business plan for a music school, the following points should be taken into account:
- Marketing analysis and target audience definition. In the process of drawing up a marketing plan, it is necessary to monitor the market and identify the target audience, its volume and the demand for specific musical directions. In addition, you need to look at the number of similar schools in the city. This will help you determine which areas of music are in greatest demand, as well as make a SWOT analysis of competing companies.
- Selecting a location and renting a building. It is best if your school is located near a general education institution that has rental benefits and subsidies. In addition, the location directly affects its attendance. The room for the music school should be as spacious as possible (at least 200-250 sq. M), so that at least 4 classes, a teacher's room, a bathroom, a utility room, a performance hall and a small hall (20-23 sq. M) can be easily accommodated there ... As for the cost of renting premises, in large cities it fluctuates around 100 thousand rubles per 1 sq. M. m, and in small ones - within 20 thousand. rub. for 1 sq. m.
- Musical instruments and furniture. When drawing up a business plan for a music school, special attention should be paid to the selection of quality musical instruments - they must be in excellent condition and have a good brand name. For a start, 3 pianos, 5 violins, 2 saxophones, 3 guitars and 2 button accordions will be enough. While musical instrument costs are the main expense, they do not significantly affect the ROI of a project. Another important point is the purchase of furniture: 35 chairs, a table and a sofa in the hall.
- State. High-quality education is impossible without highly qualified employees who will ensure the stable operation of the music school. Recruiting excellent personnel is the most important task, so this issue should be approached with the utmost responsibility. The list of specialists should consist of teachers, head teacher, methodologist, 2 administrators, financier and cleaner.
Advertising for a music school is an important part of business
Any music school needs advertising. We are talking not only about standard techniques, including distribution of leaflets, advertisements, radio and television advertisements, but also other methods. A great option would be to organize a concert on the occasion of the opening of a creative educational institution, during which your teachers will speak and show what potential students can learn. You can also create a personal website and create pages on social networks. In order for the whole country to know about you, it is recommended that you record the performances of your students on video and upload these videos to the network.
If you feel like starting this type of business from scratch is too difficult, there is another solution. Try to buy a music school franchise that will solve many pressing issues:
- you will get the opportunity to work under a well-known brand;
- you will constantly exchange experience with other partners of the network;
- the level of knowledge of your employees is constantly will increase through training and receiving modern teaching aids;
- you will have a functional website with a user-friendly interface;
- you will receive a set of documents regulating the work of a music school;
- a CRM system will become available to you, which will greatly facilitate the maintenance of the student base.
The financial side of the business
Your music school curriculum will influence the financial component of your business. We are talking about an indicative list and the number of classes. The size of the room, the list of necessary musical instruments, furniture and personnel will depend on this. When planning an entrepreneurial activity, it is necessary to provide not only registration and organizational issues, but also to calculate the possibility of obtaining the maximum benefit from the available resources.
Cost of opening and maintaining a music school
To open a private music school in the regional region of the country, where it is planned to teach about 60-80 students, you will have to spend money on the purchase:
- musical instruments;
- educational material;
- furniture and office equipment.
Of course the best way to get to the top of the musical Olympus is to sign a contract with a "smart" music label. But in our time, when hundreds of projects appear every day and it is not difficult to make a high-quality recording, it is more and more difficult to interest listeners and producers with your music. Therefore, you always have to start yourself. For my little experience in music management, I realized that without a clear and thoughtful plan you can't go far. Therefore, I am publishing an example of a marketing plan for the next six months for my new project. I think it will come in handy for everyone who wants to bring their music to a circle a little wider than friends and the local musical get-together.
There are two musical worlds. The first is the world of pure music, consisting of inspiration, songwriting, rehearsals, performance. The second world that plays an equally important role in the event that you really want people to hear your music is the music business. Even the simple pronunciation of this phrase turns off many people. There is something potentially offensive in this phrase - music becoming a commodity. There is some kind of huckstering and betrayal here. But in the modern music world, it is not enough to be just a talented artist. Every day new bands are formed, hundreds of new songs are released, and everyone considers their music to be unique and inimitable. However, not everyone gets a response from a public that outnumbered their closest friends. That is why every creative project must have a clear implementation plan, and I am sure that there is a way to unite these two worlds, without being involved in trading, but at the same time, adhering to the set goals and the intended plan. So briefly about music marketing and its 4 main fronts.
The First Front is Artist and Product Development, and it is the only front that falls into two parts - Artist Development, which focuses on career preparation, and Product Development, which is responsible for creating and developing music. Then comes:
- Second Front: Promotion (receiving radio broadcasts);
- Third Front: Publicity (media);
- Fourth Front: Performance (Search audience).
The last three Fronts are called Demonstration Fronts. This means getting people to:
- heard music is a task of planning the Promotion;
- read or heard about music or an artist is a task of planning a Publicity;
- saw a live performance of a musician is the task of planning Performances (concert activities).
If all three Fronts are well coordinated, then all activities ultimately fall back on Product Development, which is about getting your listeners to buy or download music. All parts of the music business are interdependent, that is, they care about each other and are necessary for each other in order for the music marketing plan to be successfully implemented.
This outline assumes that the group already has material ready to record. I will not dwell on this issue in detail, since there are a bunch of articles on choosing a recording studio, a sound engineer for mastering and recording mixing. It all depends on your budget and the availability of acquaintances in this area. The plan for the development (promotion) of the XXX project is divided into 5 main stages and is designed for 8 months. Each stage is a sequential step in the implementation of the vital position of the project and has a certain duration in time. Accurate and timely implementation of each stage should lead to the fulfillment of the main goal - to make XXX a recognizable group in the CIS with the possibility of organizing a large-scale tour by the end of 2021, participation in the jazz festival in Koktebel. (Here you must specify as many specific goals as possible, which are actually achievable) The table below gives a breakdown of the stages and the approximate timing of their implementation.
Well, that's all. In the next article, I am going to lay out explanations for each item with more specific information and useful links.
In conclusion, I would like to note that any novice musician should understand that there can be no question of any profit and income in this period. Only clearly organized work and dedication to the project entirely. Do not be upset because of the lack of a huge budget - if your material is really interesting, then there will definitely be people who will agree to help you in the first couples. Of course, don't forget about creativity and inspiration. Love is our everything!
There are two concerts every day at the JAM Club, and four on weekends. 400 collectives have already passed through the club, and only 40 of them know how to gather an audience for themselves. Why is this happening, how can the group become in demand and what is needed for this?