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Jordon Harder-Cyre April 19, 2010 Thundersound Productions
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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. Business Profile
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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
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Economics of One Unit Definition of One Unit One beat Recorded Selling Price per Unit$40.00 Direct Labor$20 Materials $1 Total COGS Per Unit$21 Other Variable Costs (outgoing shipping, packaging, commissions) $.80 Total Variable Costs$21.80 Gross Profit Per Unit$18.20
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Cost of Materials/Direct Labor Definition of One Unit: Direct labor (wage per hour) Time (in hours) to make one unit Direct labor cost per unit ($) $201 TOTAL$ (C) Material DescriptionCost /QuantityCost per Unit ($) Cd’s 1$1 labels.80$0.80 TOTAL$ 1.80 TOTAL MATERIALS/DIRECT LABOR $21.80 5
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Competition CompetitorPriceLocationQuality Playa Styles Productions $50North centralGood Mon3yclip productions $15- $50 North Central Decent Work Competitive Advantage -I have unique equipment. -I w ill take recommendations for a type of beat and than make it specifically for them.
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Marketing Mix & Plan MethodDescriptionTarget Consumer ( age, gender, location) Cost PriceWill vary depending on quality of the beat. People who want affordable instrumentals. $15- $40 PlaceMusic Stores ProductThe Instrumentals produced.Rappers/Singers who don’t Have a Producer PromotionCards,demosClubs, rappers, performers $50
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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
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Average Monthly Fixed Costs Type of Fixed CostMonthly Cost Entrepreneurial Stipend [hours x (minimum wage + $1-$5)] $ 300.00 Cd Labels example: utilities, salaries, advertising, etc $ 10.00 $ $ $ TOTAL Fixed Monthly Costs$ 310.00 9
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Monthly Sales Projection MonthUnits Sold January10 February5 March5 April5 May5 June10 July10 August5 September5 October5 November10 December10 Total =75 10
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Projected Yearly Income Statement Selling Price Per Unit$ 40.00 # of Units Sold75 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
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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 SuppliesVendor NamePrice CD and LabelStaples$ 1.80 Midi KeyboardsLong and McQuade$ 80.00 MicrophoneLong and McQuade$100.00 $ CASH RESERVE covering 3 months of fixed costs $ 500.00 Estimated TOTAL START-UP INVESTMENT $ 1700.00 12
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Financing Strategy for Total Start-up Investment SourceAmount Personal Savings$100.00 Relatives/Friends$50.00 Investor – Regina District Chamber of Commerce $500.00 Grant$650 13
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Return On Sales Return on Sales (ROS) Yearly Net Profit ÷ Total Sales X 100 2690 / 3000 x 100 = 89 89% For every $1 dollar of sales, my business earned : $.89 14
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Return On Investment Return on Investment (ROI) Yearly Net Profit ÷ Start-up Investment X 100 (2690 / 1700) x 100 158% For every $1 dollar invested, my business earned : $1.58 15
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Business & Educational Goals Business Short term-Start a recording studio. Long term-Make a known record label. Educational Short term -Finish high school. Long term -Not really sure. 16
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Time Management Plan Business schedule for a typical week Entrepreneurship Hours: 15 hours School Hours: 30 hours Work Hours: 0 hours Free-Time Hours: 10 hours 17
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Thundersound Productions Real music lives on Thank you for your consideration of Thundersound Productions
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