jordon harder-cyre april 19, 2010 thundersound productions
TRANSCRIPT
Jordon Harder-Cyre
April 19, 2010
Thundersound Productions
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
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 $1
Total COGS Per Unit $21
Other Variable Costs (outgoing shipping, packaging, commissions)
$.80
Total Variable Costs $21.80
Gross Profit Per Unit $18.20
Cost of Materials/Direct Labor
Definition of One Unit:Direct labor
(wage per hour) Time (in hours) to make one unit
Direct labor cost per unit ($)
$20 1 $20
TOTAL $ (C)
Material Description Cost /Quantity Cost per Unit ($)
Cd’s 1 $1
labels .80 $0.80
TOTAL $ 1.80
TOTAL MATERIALS/DIRECT LABOR $21.80
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Competition
Competitor Price Location Quality
Playa Styles Productions $50 North central GoodMon3yclip productions $15-
$50North Central
Decent 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( age, gender, location)
Cost
Price Will vary depending on quality of the beat.
People who want affordable instrumentals.
$15-$40
Place Music Stores
Product The Instrumentals produced. Rappers/Singers who don’t Have a Producer
Promotion Cards,demos Clubs, rappers, performers
$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.
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Average Monthly Fixed Costs
Type of Fixed Cost Monthly 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
Monthly Sales ProjectionMonth 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 10Total =75
0
2
4
6
8
10
12
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Units sold
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
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 McQuade $ 80.00
Microphone Long and McQuade $100.00
$
CASH RESERVE covering 3 months of fixed costs $ 500.00
Estimated TOTAL START-UP INVESTMENT $ 1700.00
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Financing Strategy for Total Start-up Investment
Source Amount
Personal Savings $100.00
Relatives/Friends $50.00
Investor – Regina District Chamber of Commerce
$500.00
Grant $650
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Return On Sales
Return on Sales (ROS)Yearly Net Profit ÷ Total Sales X 100
2690 / 3000 x 100 = 8989%
For every $1 dollar of sales,
my business earned :$.89
$0.84
$0.86
$0.88
$0.90
$0.92
$0.94
$0.96
$0.98
$1.00
ROS
$1 of sales
Amount of $gained/lossed bysales
14
Return On Investment
Return on Investment (ROI)Yearly Net Profit ÷ Start-up Investment X 100
(2690 / 1700) x 100158%
For every $1 dollar invested,
my business earned :$1.58
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
ROI
Original $1invested inbusiness
Amount of $gained/lossed byoriginal dollarinvested
15
Business & Educational Goals
• BusinessShort term-Start a recording
studio.
Long term-Make a known record label.
• Educational Short term -Finish high school.
Long term -Not really sure.
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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
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Thundersound ProductionsReal music lives on
Thank you for your consideration of
Thundersound Productions