by: celeste smith p erformance music school. what we offer
TRANSCRIPT
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By: Celeste Smith
Performance Music School
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What We Offer
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Personnel
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Competition
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Target Markets
Primary
Seconda
ry
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Marketing Plan
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Capital & Financing Budgets
Capital Item Cost
Leasehold Improvements $8,600
Furniture and Equipment 2,500
Musical Instruments 13,050
Total $24,150
Financing: 100% Equity
$30,000
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Number of Customers
Year 1 Year 2 Year 3 Year 4 Year 50
50
100
150
200
250
300
350
Base CaseBreak-Even
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Financials
Year 1
Year 2
Year 3
Year 4
Year 5
0
20000
40000
60000
80000
100000
120000
Net IncomeOwner's Com-pensation
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Conclusion
Feasible?
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Thank You
Questions?
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Revenues
Year 1 Year 2 Year 3 Year 4 Year 50
100000
200000
300000
400000
500000
600000
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FTE Teachers Required
Year FTE Teachers Required
1 1.08
2 1.51
3 2.11
4 2.95
5 4.13
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Operating Expenses
Expense Annual Cost
Accounting & legal 1,500
Advertising 600
Benefits 4,287
Phone, Cell, Internet 1,740
Insurance 800
Labour Compensation 51,372
Lease & Occupancy cost 30,800
General Supplies 250
Repair & Maintenance 500
Capital Cost Allowance 1,727
Total $93,576
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MarginsEstimated retail: $50/student per year
Rental payback: approx. 1 year
Division Gross Profit Margin
Lessons 25%
Retail 35%
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Capital BudgetDescription Estimated Costs
Leasehold Improvements
Paint 500
Electrical 600
Carpentry/Doors 3,500
Flooring 2,500
Contingency Cost 1,500
Total Leasehold Improvements $8,600
Equipment
Desk & Chair 500
Phone 50
Computer & printer 700
Music stands 100 (5x$20)
Chairs (recital room) 750 (30x$25)
Tables 100 (2x$50)
Musical Instruments (for rental) 13,050
Retail racks 300
Total $15,550
Total Capital Costs $24,150