Business Plan for Entertainment Seminar - Research Proposal Example

Contents ment of Purpose 4 Executive Summary 5 Services 6 Marketing Leads 7 The Business 7 Portrayal of the Entity 7 Present Status 8 Business Objectives 8 Mission Statement 9 Success Measures 9 A.Profitability Probability 9 B.What's so Special about our Services' What makes our services distinguishable from the competition' 10 C.Is Competition a Threat' 11 D.Help from Suppliers 12 Startup Summary 12 Startup 12 Target Market 13 Sales Forecast: Consulting and Finders Fees 13 Target Market 14 Sales Forecast: Producer Seminar Training Program 15 Financial Plans 16 Assumptions 16 Breakeven Analysis 16 Profit & loss A/c (Income Statement) (Projected) 17 Marketing Management 19 Modes of Advertisement 20 Future Plans 21 Conclusion 21 Table of Figures 22 Statement of Purpose The Principal purpose of this plan is to justify and put into picture the amount of capital required. Supplementary purposes of this business plan are: Act as an Operating Guide for the company and its chief executives. Act as a Policy Guide. The company 'Belter-Chan Entertainment' will be registered and classified as an LLC. The CEO of the company is Betty K. Chan and seeks loans amounting up to USD 300,000; which will be primarily used for the following aims: Rent Property for the company and the seminar program. Advertisement for the company and seminar program. Purchase of Furniture and Office supplies. Semi-Diminutive Fixed business expenses. Hiring motion picture industry professionals for the Producer Seminar Training Program. To help with the initial cash reserves, this shall be used as 'start-up fund'. The major expenditures for this business are fixed expenses; which are inclusive of property rent, hiring professional speakers, and start-up requirements. Variable expenses are substantially diminutive in comparison. The company initially plans to achieve enough cash flows by the end of first year of business so as to not be dependent on alien capital after the first year through its Producer Seminar Training Program. The company plans to repay the complete start-up debt by the end of the second quarter of the fourth year. It is through this primary business plan that the Consultants/Executive Producers shall justify the requirement of funds and demonstrate the fact that the requirement of capital is vindicated. Executive Summary Belter-Chan Entertainment, LLC; has been founded by the endowed and talented duo Betty Chan, who will act as the CEO; and Aaron Belter, the designated COO. Betty Chan holds a Masters of Business Administration (MBA) in Management from the University of Southern California (USC) Marshall School of Business, served as a Systems Operator for the US Navy, held a high security clearance while employed with the Governor of California Arnold Scwarzenegger, the US Department of State and the US Department of Labor and has prior production accounting experience with Paramount Pictures, the major motion picture studio located in Hollywood. Aaron Belter was a former Talent Agent with the largest talent agency in the world, the William Morris Agency in Beverly Hills before becoming a Film Producer for his now dissolved motion picture production company Niboucha-Belter Films which was once located at Universal Pictures. After dissolving his motion picture production company, Mr. Belter re-entered talent representation with Michael Ovitz's Artists Management Group in Beverly Hills as a Talent Manager and after this company closed in 2001, Mr. Belter formed Belter Management where he continued as a Talent Manager and Consulted for motion picture directors and producers in areas production finance and distribution. The new alliance of Belter-Chan will engage in Motion Picture Consulting, Development and Producer Training. Our primarily target audiences interested in advanced Motion Picture Producing Seminar Training Programs will be offered to students and professionals alike and shall include an in depth look to the art and science of producing motion pictures; complete from Acquisition, Development, Pre-Financing, Packaging, Production Financing, Pre-Production, Production, Post Production, Delivery and Distribution/Exhibition held at a major studios and presented by industry professionals who will act as guest speakers at each Producer Seminar Training Program. The target market will be absolutely presented to students, both undergraduate and graduate, who have basic knowledge about film or motion picture and television production, and to directors and producers both independent and studio production companies who wish to expand their production companies and resources through production finance and distribution channels. Services Although the prime aim of Belter-Chan is to see to the conduction of Producer Training seminars, the company will also provide various other services such as Consulting for the motion picture industry in areas of Acquisition, Development, Pre-Financing, Packaging, Production Financing, Pre-Production, Production, Post Production, Delivery and Distribution/Exhibition. Belter-Chan will also engage in Personal Management of Directors, Producers and Screenwriters and as a Producer Representative handling a producer's business affairs in negotiating script option or acquisition agreements, development deals, personnel agreements, production financing arrangements and distribution agreements. Belter-Chan will furthermore develop motion picture projects for themselves as well as projects for independent producers and the major Hollywood studios. Marketing Leads The company will follow the traditionally successful Porter's Marketing strategies that will enable us to differentiate our unique and specialized services from our competitors and will be directly intended for our target markets only. Various modes of advertisement would be the internet through entertainment related sites and trade magazines such as the Hollywood Reporter, Daily Variety and self promotion through various networking channels within the motion picture industry such as movie premieres, trade shows and conventions (i.e., ShoBiz Expo), at major motion picture studios and industry related functions. The Business Portrayal of the Entity Nature of Business Motion Picture Consulting, Development and Seminars Business Address 4000 Warner Blvd, Burbank, CA 91522 (Warner Bros Studios) or at Universal, Paramount or Sony Studios. Type of Entity Limited Liability Company Principal Authorities Betty Chan (CEO) and Aaron Belter (COO) Proposed Date of Commencement 1st October 2009 Table 1: Portrayal of the Entity Present Status Betty K. Chan is overlooking the legal prospects of registration as a Limited Liability Company, although it has been finalized and all that remains now is to get the company registered. On the other hand, Aaron Belter has already started dealing with the concerned studio executives for office space on rent and has finalized Warner Bros. Studios located at 4000, Warner Blvd , Burbank, CA 91522 and are in talks with the present studio executives on renting offices on the studio lot, other studios include Paramount, universal and Sony Studios. The business is set and ready to start by 1st October 2009. Business Objectives The prime financial objectives of the company are: To achieve enough cash flows by the end of first year of business so as to not be dependent on alien capital after the first year. To repay the debts by the end of second quarter of the fourth year. Gross Revenues of the company which it must reach $1.5 Million within 6 years. Management objectives of the company are as follows: Provide advanced Producer Training Programs to students and professionals alike. To host Producer Seminar Training Programs at the major Hollywood studios. Hire 10 industry professional guest speakers by the beginning of the first seminar. Mission Statement The motion picture industry is all about making the best use of your resources and letting your creativity and the inner voice do the talking for you. If one listens about a movie idea, he/she must be creative enough to imagine the idea in motion through his brain's imaginative eyes. Therefore, we are proud on our efforts to get our trainees to explore the hidden side of their soul, we would teach them how to look at the production business through their heart rather than as a money making endeavor. After all, the best people in any field have always been the people that love what they do. And this is the basis for our Producer Seminar Training Program that we plan to offer to students and professionals alike. Therefore, our mission statement is 'To coach producers that were born to produce' Success Measures A. Profitability Probability Belter-Chan Entertainment is a company working in an industry wherein it faces tremendous competition if we analyze the market as a whole. But when we focus our awareness on a specific target market or service, we are virtually unbeatable considering the following aspects: The target market is compromised of those directors and independent producers that are already aware of the basic ins and outs of the industry. This may also include graduate students with degrees in filmmaking or television. Location: The company and seminar location will be located within the Warner Brothers studios, this will increase the goodwill of the company by far and it will give us an edge over the competition, which are comprised of entertainment lawyers. Specialization: Currently entertainment lawyers are acting as consultants for directors and producers where consultants in this field are virtually non-existent. This will allow us offer our services where entertainment lawyers lack the practical hands on experience in the industry and allow us to offer competitive rates for our services. B. What's so Special about our Services' What makes our services distinguishable from the competition' The following features make our services far better than those of our competitors: A full-time and fully-equipped company: We plan to establish an entire business based upon conducting consulting for the motion picture industry in areas of Acquisition, Development, Pre-Financing, Packaging, Production Financing, Pre-Production, Production, Post Production, Delivery and Distribution/Exhibition and Producer Seminar Training Programs. Unlike most other "temporary" companies which are originally indulged in other business ventures and conduct training seminars as a mode to make a quick buck. We will be there to help our trainees even after their 10 weeks training program is over with offering them our consulting services with the topics offered in the training program. Except for this, we would be organizing other Producer Seminar Training Programs twice a year held on the back lot of a different major motion picture studio by a different group of industry professionals guest speaking in their area of expertise at each seminar, even the previously qualified trainees will be taught about the recent developments within the field at a diminutive price. This service will start once we have established a self sufficient cash flow record and company owned fixed assets required to conduct seminars. Through our Producer Seminar Training Programs we will receive future clients who will utilize our services while making valuable connections with those industry professionals that guest speak at our seminars. Specialized training: our training seminars are extremely specialized and will be offered to film and television students and professional alike. C. Is Competition a Threat' No, as a matter of fact, Belter-Chan strongly believe in the concept of 'healthy competition', even though consultants in this specialized area are virtually non-existent. Neither do Belter-Chan believe in belittling the competition which consist mainly of entertainment lawyers who act as consultants currently. We hope to sustain our proposed market share irrespective of this factor. D. Help from Suppliers Warner Bros., as well as Universal, Paramount and Sony have agreed to rent us their property a week to week or month to month basis without a lease and at just a deposit of 3 months in advance. (rent) Fixtures will be provided by the studio at a rent amount until we can accumulate enough cash flows to purchase them permanently. (limited fixtures, some furniture and fixtures would yet be purchased) Startup Summary Starting up an enterprise like ours requires extensive capital, as 'usage-of-the money' is primarily for the company and the Producer Seminar Training Program. Startup Start Up Expenses Legal Fees $12,000 Stationery and Industry Related Books. $2,000 Seminar Reference Books (1,000 books at $24.00 each) $25,000 Company Vehicle Lease (Deposit and Six Month's Lease Payments) $7,000 Web Development Costs (Domain Registration and Pay Pal) $1,500 Office Weekly Lease (Deposit + Six Month's Rent) at a Studio $50,000 Professional Guest Speakers ($10,000 per person) $100,000 Advertising and Promotion (Trade Publications, Brochures and Radio) $25,000 Company Insurance ($3 million umbrella insurance) $6,000 Seminar Training Space Rental (Daily Rate of $2,000 for 10 days) $20,000 Office Equipment and Supplies $50,000 Total Start Up Expenses $300,000 Table 2:Start UP SummaryMarket Analysis Target Market The target audiences of the consulting services and finders fees that we will provide are as follows: Independent production companies of all sizes. Major Motion Picture Studios. Individual Directors, Producers and Screenwriters. Sales Forecast: Consulting and Finders Fees Table 3: Sales Forecast Consulting & P-F/D Finders Fees 2010 2011 2012 2013 2014 2015 Production Companies $125,750 $138,340 $147,560 $156,780 $169,230 $188,210 Major Studios $45,550 $56,730 $62,340 $71,290 $80,180 $98,450 Individual Directors, Producers & Screenwriters $73,200 $88,100 $97,570 $110,370 $134,980 $156,260 Total Sales $244,500 $283,170 $307,470 $338,440 $384,390 $442,920 Target Market The target audiences for the Producer Seminar Training Program that we will offer are as follows: College and University Film and Television Undergraduates. College and University Film and Television Graduates. Individual Actors, Directors, Filmmakers and Screenwriters. Career Change Individuals in other industries. Sales Forecast: Producer Seminar Training Program Seminar (Twice A Year) 2010 2011 2012 2013 2014 Total Sales (1000 Participants at $1,000 per person a year) $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 10 Guest Speakers $200,000 $200,000 $200,000 $200,000 $200,000 Location Rental $40,000 $40,000 $40,000 $40,000 $40,000 Seminar Books $50,000 $50,000 $50,000 $50,000 $50,000 Advertising $50,000 $50,000 $50,000 $50,000 $50,000 Misc. Expenses $10,000 $10,000 $10,000 $10,000 $10,000 Total Expenses $350,000 $350,000 $350,000 $350,000 $350,000 Total Revenues $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Net Profits (Before Taxes) $650,000 $650,000 $650,000 $650,000 $650,000 Table 4: Predicted Sales Financial Plans Assumptions The following assumptions were considered while making this plan. Please note that the assumptions within the breakeven analysis are not included here. 1st Year 2nd Year 3rd year Interest Rates 10% 10% 10% Tax Rate 30% 30% 30% Table 5: Assumptions Breakeven Analysis Assumptions Avg. Per unit variable cost $1000 Avg. fixed costs per annum $496,000 Avg. per unit revenue $2,509 Table 6: Breakeven Assumptions Total sales required (annual) = 496 units. Profit & loss A/c (Income Statement) (Projected) Profit & Loss 2010 2011 2012 2013 2014 Total Revenues $1,244,500 $1,283,170 $1,307,470 $1,338,440 $1,442,920 Direct Costs $430,000 $430,000 $430,000 $430,000 $430,00 Loan Repayment (Plus 10%) $66,000 $66,000 $66,000 $66,000 $66,000 Total Costs $496,000 $496,000 $496,000 $496,000 $496,000 Gross Margin $748,500 $787,170 $833,470 $842,440 $946,920 Gross Margin % 60.14% 61.34% 63.74% 62.94% 65.62% Total Expenses Payroll & Taxes $300,000 $300,000 $300,000 $300,000 $300,000 Seminar Books $25,000 $25,000 $25,000 $25,000 $25,000 Advertising $50,000 $50,000 $50,000 $50,000 $50,000 Vehicle Lease $6,000 $6,000 $6,000 $6,000 $6,000 Legal $12,000 $12,000 $12,000 $12,000 $12,000 Office Rental $100,000 $100,000 $100,000 $100,000 $100,000 Tel/Fax/Internet $15,000 $15,000 $15,000 $15,000 $15,000 Guest Speakers $200,000 $200,000 $200,000 $200,000 $200,000 Seminar Facility $40,000 $40,000 $40,000 $40,000 $40,000 Insurance $6,000 $6,000 $6,000 $6,000 $6,000 Website $1,500 $1,500 $1,500 $1,500 $1,500 Stationary/Books $2,000 $2,000 $2,000 $2,000 $2,000 Office Supplies $8,000 $8,000 $8,000 $8,000 $8,000 Office Equip and Furniture $5,000 $5,000 $5,000 $5,000 $5,000 Seminar Books $25,000 $25,000 $25,000 $25,000 $25,000 Loan Repayment $60,000 $60,000 $60,000 $60,000 $60,000 Loan Interest $6,000 $6,000 $6,000 $6,000 $6,000 Misc. Expenses $10,000 $10,000 $10,000 $10,000 $10,000 Total Expenses $871,500 $871,500 $871,500 $871,500 $871,500 Total Revenues $1,244,500 $1,283,170 $1,307,470 $1,338,440 $1,442,920 EBITDA at 25% $93,250 $102,918 $108,993 $116,735 $142,855 Total Revenues $1,244,500 $1,283,170 $1,307,470 $1,338,440 $1,442,920 Total Expenses and Taxes $964,750 $974,418 $980,493 $988,235 $1,014,355 Net Profits $279,750 $308,752 $326,977 $350,205 $428,565 Net Profits % 22.48% 24.06% 25.01% 26.16% 29.70% Table 7: Income Statement (Profit and Loss) According to the predictions made through the data collected within the previous segments as well as clarifying our intentions for the usage of our limited resources, the P&L account clearly displays the startup expenses as well as further business expenses. Marketing Management Modes of Advertisement Magazines: The following magazines have been chosen to advertise our services: Daily Variety Backstage West LA Weekly Hollywood Reporter Los Angeles Times College Newspapers (UCLA, USC, CSLB, LACC, etc.) The cost to advertise on each of these magazines is about $90 per column inch (B/W) and $250 per small color advertisement. Marketing Channels Various Blogs. Link Builders Web Hosting Word of Mouth Networking Future Plans The company also plans to develop film projects for ourselves, independent production companies, foreign and domestic distributors and major Hollywood Studios, co-produce with other independent film production companies, executive produce other independent film production companies film projects and eventually produce our own independent film projects after the third year. The company also plans to produce DVD recordings of each of the Producer Seminar Training Programs for resale. Conclusion According to the figures as presented within the P&L and the Cash flow statement, the fact is of no doubt that the company will reach record heights within the next decade; of course also thanking managerial factors such as low competition, and the specific-ability of our business plan. Not to mention the preceding experience and contacts of the promoters, of which, their reputation precedes them. The company will be an instant success considering the repeat business that it will generate from the production houses and individuals, through the naturally spreading Word of Mouth publicity and our humongous advertisement budget and excellent marketing strategies. The business is expected to grow at even a greater rate along with the sales and the reducing 'rental/temporary' costs. The loan will be paid back in record time thanks to the booming figures and the recent opportunities within the industry. With Hollywood Studios downsizing, the need for our consulting services will be greatly needed in these economic times and the company shall have no trouble at all looking for customers. Table of Figures Table 1: Portrayal of the Entity 7 Table 2:Start UP SummaryMarket Analysis 13 Table 3: Sales Forecast 14 Table 4: Predicted Sales 16 Table 5: Assumptions 16 Table 6: Breakeven Assumptions 16 Table 7: Income Statement (Profit and Loss) 19 Read More