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Thundersound Productions Jordon Harder-Cyre April 19, 2010
Business Profile My business is making and selling instrumentals for around $15 -$40, and also studio time for every beat that is bought. My business is a Manufacturing business. The beats are the product that is made and they get sold to the people that want/need them. An instrumental is a song without lyrics.
Qualifications • Hip-Hop Project Graduate. • Have experience in recording/producing. • Entrepreneurship 30 graduate In the future, I hope to: • Buy enhanced equipment, • Start my own record label
Economics of One Unit Definition of One Unit One beat Recorded Selling Price per Unit $40. 00 Direct Labor $20 Materials Total COGS Per Unit $1 $21 Other Variable Costs $. 80 (outgoing shipping, packaging, commissions) Total Variable Costs $21. 80 Gross Profit Per Unit $18. 20
5 Cost of Materials/Direct Labor Definition of One Unit: Direct labor (wage per hour) Time (in hours) to make one unit Direct labor cost per unit ($) $20 1 $20 TOTAL $ (C) Material Description Cost /Quantity Cost per Unit ($) Cd’s 1 $1 labels . 80 $0. 80 TOTAL MATERIALS/DIRECT LABOR $ 1. 80 $21. 80
Competition Competitor Playa Styles Productions Mon 3 yclip productions Price $50 $15$50 Location Quality North central Good North Decent Central Work Competitive Advantage -I have unique equipment. -I will take recommendations for a type of beat and than make it specifically for them.
Marketing Mix & Plan Method Description Target Consumer Cost ( age, gender, location) Price Will vary depending on quality of the beat. People who want affordable instrumentals. Place Music Stores Product The Instrumentals produced. Rappers/Singers who don’t Have a Producer Promotion Cards, demos Clubs, rappers, performers $15$40 $50
Philanthropy Plan My business will be giving back the old hip hop sound because I will attempt to make beats that will have an old hip hop feel. When the business is running I will give workshops to young people. 8
Average Monthly Fixed Costs Type of Fixed Cost Monthly Cost Entrepreneurial Stipend [hours x (minimum wage + $1 -$5)] $ 300. 00 Cd Labels example: $ 10. 00 utilities, salaries, advertising, etc $ $ $ TOTAL Fixed Monthly Costs $ 310. 00 9
Monthly Sales Projection Month Units Sold January 10 February 5 March 5 April 5 May 5 June 10 July 10 August 5 September 5 October 5 November 10 December Total 10 =75 10
Projected Yearly Income Statement Selling Price Per Unit $ 40. 00 # of Units Sold 75 Total Sales $3000. 00 Less Variable Costs Total COGS $21. 00 Other Variable Costs $0. 80 Total Variable Costs $21. 80 Gross Profit $18. 20 Less Fixed Costs USAIIRD (Yearly) $310. 00 Unforeseen $ Total Fixed Costs $310. 00 Profit before Taxes $2690 Net Profit $2690. 00
12 Start-up Investment Entrepreneurial hours needed for start-up Minimum wage + ($1 -$5) Total start-up time investment 60 $ 20. 00 $ 1200. 00 Description of Supplies Vendor Name Price CD and Label Staples $ 1. 80 Midi Keyboards Long and Mc. Quade $ 80. 00 Microphone Long and Mc. Quade $100. 00 $ CASH RESERVE covering 3 months of fixed costs $ 500. 00 Estimated TOTAL START-UP INVESTMENT $ 1700. 00
Financing Strategy 13 for Total Start-up Investment Source Amount Personal Savings $100. 00 Relatives/Friends $50. 00 Investor – Regina District Chamber of Commerce Grant $500. 00 $650
14 Return On Sales Return on Sales (ROS) 89% Yearly Net Profit ÷ Total Sales X 100 2690 / 3000 x 100 = 89 For every $1 dollar of sales, my business earned : $. 89
Return On Investment 15 Return on Investment (ROI) 158% Yearly Net Profit ÷ Start-up Investment X 100 (2690 / 1700) x 100 For every $1 dollar invested, my business earned : $1. 58
Business & Educational Goals • Business Short term-Start a recording studio. • Educational Short term -Finish high school. Long term -Not really sure. Long term-Make a known record label. 16
Time Management Plan Business schedule for a typical week • • Entrepreneurship Hours: School Hours: Work Hours: Free-Time Hours: 15 hours 30 hours 10 hours 17
Thundersound Productions Real music lives on Thank you for your consideration of Thundersound Productions