1. All about guitars www.gitarspele.lv LTD «Neon Plus» By Eduards Aksjonenko eduards@gitarspele.lv

2. About us Mission: To make music available to everyone Vision: To become a leader in teaching how to play on a guitar Values: Professionality, Technology and Responsibility

3. Historically different brands Gitaruveikals.lv

4. Guitar news and lessons

5. Focus and rebranding Guitar lessons 85% Guitar repair/service 10% Guitar rental 5%

6. About the company Estabilshed in 2010 Currently 7 empoyees (5 teachers, 1 administrator and 1 CEO = owner). Leader in providing most guitar lessons as a single music school Guitar repair/service is outsourced Average turnover 70’ 000 – 85’ 000 EUR per year.

7. We are as main communicator and manager for the lessons, keeping the high quality of the service Everyone should focus and do at what he is good at Business model Gitarspele.l v Teachers Students Need for guitars

8. 2 targets 1.How to attract new customers by expanding the business 2.In long term strategy create cost effective and profitable business model

9. Guitar Lessons Providing guitar lessons 6 days a week 2 Guitar lesson rooms paralelly from 13:00 – 20:00 Lesson type: private or groups (2-3) 100 – 120 different students per week Problem: Latvia market capacity

10. Staff Teachers – educated musicians at the young age (22 – 28). Most work a half load – 20 hours a week Language skills: latvian, russian and english Critical to have: professional methodology and guitar playing skills, enthusiasm and patience

11. Pricing Regular monthly lessons for students: – Private 59 EUR – In group 30 Regular monthly lessons for adults: – Private 69 EUR – In group 40

12. Target audience Young people aged 12 – 26 Income – comes from family or generating on their own Hobby level players at most Problem: market is small

13. Attracting new customers Main marketing channels: – Guitar news and lessons on our web page – Free guitar lessons online (on our youtube and also in web page) – Social networks – Different coupon or gift card services – Organizing guitar player contests or events

14. Income and expenses IncomeExpenses Lessons total6000Office/room rent600 Private lessons1000 Administration and management cost2000 Group lessons5000Teachers3500 Guitar repair/service700 Office expenses (internet, phone, paper etc)100 Guitar rental350Homepage support100 Income total per month7050Expenses total per month6300 Income total per year84600Expenses total per year75600 Profit/loss per month750 Profit/loss per year9000

15. What creates profit? Private lessons = 0 Group lessons with 2 persons = 0 Group lessons with 3 persons (maximum capacity per lesson because of rooms and skill match) = gain The best is subscription: monthly regular fee.

16. Yearly flow of income per month 123456789101112 9%12%9%5% 9%11% 10%9%100%

17. Thank you for your attention