Music Millennium Inc. will be a London-based promotional and training company, specializing in providing upscale educational, promotional, advertising, training and music-start-up support services. Basically, the company will be incorporated in London, under the provisions of the company law England, while the services will be provided on the entire territory of the United Kingdom, and in the long run the business will be expanded to the international level.
The key factors of the project success are the low competition rate in the musical management sector, the geographical location of the future project and the general increase of the music-oriented business entities of the United Kingdom and worldwide. Another fact that will definitely and significantly contribute to the thrive of the targeted project is managerial strategy of the new enterprise. Specifically, the key managerial positions will be altered between the professional managers, familiar with the managerial and executive strategies and the professional musicians and other people of the art, who perceive better the necessities of the industry, and hereby can formulate the demand more effectively and accurately.
This business plan has been designed for the consideration of the prospective investors and the top management of the targeted company. It encapsulates information relating to the nature of the rendered services, the vision of the mission statement of the company, the prospective referral base, location, resource allocation system, resource allocation procedure, Human Resources Management strategies, potential partners of the newly-opened business entity and budget formulation for the first year of operation.
Basic Information about the Business
This section of the business plan outlines the nature of the enterprise, its organizational structure, legal foundation, the ownership of the company, ethical considerations and the nearest deadline checkpoints of the firm, which is fully in accordance with the existing trends of business plan composition.
Mission Statement and Objectives
The mission of the company has a complex composite structure and integrally contains several important constituents. Concisely, the mission of the company is to “facilitate the music-oriented business entities and individual performers to succeed in their musical endeavors.” Therefore, the mission statement of the company contains several independent constituents which shall be construed independently:
- To facilitate the customers of the newly established business unit to meet their business goals and to implement their policies
- To realize the social responsibility function of the company. This section of the company business activity includes the regular monetary and non-monetary contributions to the needs of the community. Financing the environmentally sanitation activities and social protective projects (the help to the homelessness and socially depraved and deprecate people), providing free educational services for the most talented students are the indispensable parts of the social responsibility policy of the business entity.
- The company will be a law-observant subject of the commercial process. Specifically, the firm assumes the responsibility to meet not the legal prescriptions exclusively, but to ensure full compliance with the existing and emerging ethical standards as well. Moreover, the observance of the international instruments alongside with the domestic acts and customs will be guaranteed.
- The latest component of the declared mission statement of the firm is the generation of profit with the intent to guarantee the financial well-being and prosperity of the employees of the company and the owners as well.
Organizational Model of the Enterprise
Considering the sector of operation, the most optimal for the needs of this business seems to be Swiss Verein business type of entity. To be more exact, the firm will be hierarchically built, although taking into consideration middle-scale size the staff composition is twofold. The first group includes the executives of the firm (for the present period of the firm’s existence it seems to be of no avail to distinguish between the top-management and other executives of the company, since all the managerial authoritative powers will be similar in their nature) while the second will be the professional implicated in the industrial cycle of the enterprise.
With regard to the quantitative characteristics of the discussed future business unit, the most relevant structure appears to be 4 executive officers and 20 specialists appointed to occupy the positions in various departments of the newly-opened business unity.
As far as the operational division of the firm is concerned, the following internal structure is the most suitable for the needs of this startup initiative:
- Promotional Department will be structural unit of the company responsible for the promotional campaigns of the existing musical brands, which cooperate with the Music Millennium Inc.
- Advertising Department will be structural unit of the company responsible for the design, elaboration and implementation of the various advertising strategies for the entities which cooperate with the discussed business unit.
- Educational Department will be a division of the company responsible for direct provision of high-quality education services for the individuals, music bands and brand management groups which decide to operate in the music and show business industries, but which need profound and professional counseling on how to proceed to ensure that their startup will be effective and profitable.
- Training Department of the company will provide training and coaching services for the individuals, music bands and brand management groups which already operate in the field.
It shall be specifically accentuated, that the with regard to the growing character of the firm, the divisions is likely to be transformed during the second year of company operation. In particular, the Educational Department is very likely to be divided into separate departments, respectively specializing in rendering educational services for the musicians and the managerial board of the brand groups and other entities implicated.
The organizational period of the business project will take approximately six full months.
Legal Foundation of the Firm
Concerning the legal form of the projected business entities, the most suitable option is the limited liability partnership. This form of legal incorporation seems to be the most suitable one due to the following reasons:
- The tax legislation of the United Kingdom is the most auspicious for the development of the newly-opened business entities. The multiple composite tax privileges and immunities are granted to such entities with the intent to cultivate business-friendly climate on the territories of the United Kingdom.
- This type of legal entity is the most flexibly controlled, what shall be of use for the executive department of the firm.
- The international contracts and agreements contracted by such type of business can be easily enforced due to the existing international law, since this type of the business entity can be easily localized by the adjudicating authority. This advantage is of particular advantage for the legal department (the in-house counsel) of the company.
The Description of the Rendered Services
This section of the business plan outlines the practice areas of the targeted project and speculates over the pricing policy of the project.
The business project at issue will be operating in five areas:
- Music Training Services. Under this section of the company activity, the specialist hired by the company will provide training services for the individual performers and music bands which already operate on the market with the intent to enhance their skills and professional capabilities. Subdivision of this department will focus their activity on rendering training and coaching services for the
- Music Educational Services. The educators will prepare future individual performers, and music bands which do not have previous experience on the stage.
- Promotional Services will be rendered to the customers of the company which already operate on the market, but which express the intent to enhance their cash influx and increase their customers’ base. Equally well these services will be provided.
- Advertising Services will be rendered to the already operable business entities implicated in the music and show business sector and which are willing to enhance their overall performance, increase their revenues and their customers’ base respectively.
- Creational Services will be provided to the individuals planning to launch their music-related business enterprise. Full package of services, from the incorporation of the legal entity to the purchase of the required equipment and permanent counseling and organizational maintenance of the startup will be rendered by the company.
Realizing the fact that the musical industry is one of the most dynamically developing, it can be assumed that this list of the offered services will be abridged or supplemented during the second year of project implementation.
Targeted Customers and Marketing Plan of the Company
The customer base of the firm includes three basic categories:
- Individuals and small-scale business entity with extensive operational area, willing to set up musical branch of their already existing business or establish a brand-new business entity.
- Individual music performance. This group of clients is likely to contract the company for the purposes of training or promotion.
- Musical Bands. This group of clients is most highly probable to contract the company to obtain training, promotional and advertising services.
- Brand Groups. These business entities, operating in the music management field are likely to contract the company with the intent to organize large-scale promotional campaigns of their clients and advertising of the services provided by them.
The target market is the middle-scale music industry of the United Kingdom and the continental Europe, with the projected expansion to the countries of Northern and Southern America and further worldwide.
With regard to the activity of the competitors, after a careful analysis has been conducted, it can be rationally stressed that the market can be effectively divided with the competitors, owing to the fact that the market demand for the offered services significantly overlaps the proposition.
Potential partners include the banking and other credit institutions and investment unions. This group of partners is likely to contribute to the capitalization of the company. Another group of the prospective partners of the company includes the brand groups and established music management centers, which can be contracted for the needs of counseling and outsourcing services. In particular, their advertising and promotional reserves and experience can be utilized to address the needs of the customers.
Funding of the project
This section of the report provides concise calculations concerning the financial resources required for the project implementation during the first year of operational activity.
Total Costs for the Realization of the project are estimated to reach EURO 500, 000. These figures will include the financing of the following sectors:
Net Assets of the Company (i.e. the purchase of equipment, the fees and salaries of the staff, contracts, state obligatory deductions and tax payments). It takes 450, 500 EURO.
The Amortization Fund (i.e. the costs utilized to diminish the depreciation of the main assets). It takes 50, 000 EURO.