The Initial Business in Black Jacks - Assignment Example

The Initial Business in “Black Jacks” Executive Summary: The business that has been drafted in this report is that of a club named “Blac Jacks” that will have three different types of music at three levels such as hip hop / r&b, reggae, and techno. In this way, the club will be able to cater a larger audience of adults who wish to enjoy their time at the club. The location of the club will be in the shopping center located at 7939 Abercorn Street, Savannah, GA. This could be considered as a major success factor of the club as it can attract larger crowds who can find easy parking and also include those individuals who have just come for shopping at the center. If the initial business plan is successful then the club facility will be extended based upon its success rate. Objectives: The objective of the new club “Blac Jacks” is to open up high end music and dance club in Savannah where clubbers can enjoy all kinds of entertainment. Company Summary: Blac Jacks targeted audience will be population in Savannah above 18 who have relatively refined taste of music. The targeted customers are not in any way limited in terms of gender. The Club is expected to provide music records of all genres making it easier for the customers to find their chosen records at one place. The services to be provided by Blac Jacks will also include customized music recordings. Company Ownership: The ownership of Blac Jacks Club is sole proprietorship under the name of its owner Mr. Robert Serenza. Location: Location may be one of the most important aspects of our proposed business. This will decide which market we are going to serve as well as the future prosperity chances depends upon this. So, we have got the opportunity to buy an appropriate place in 7939 Abercorn st. Savannah. This club will be basically located in a shopping plaza where the surrounding businesses will also be helpful to boost our business. So this location will allow us to gain customers more easily. There will be no parking issue because of large car parking of the shopping plaza and also the closing time of the shopping plaza is 10:30 pm which will also be beneficial for our club. SERVICES: The services that are being offered by the Blac Jacks Club are as follows: The first level is comprised of hip-hop / r&b music. The 2nd level is designed for Reggae that is a popular music where repetitive bass riffs and regular chords are played on the offbeat by the guitar. The third level consists of Techno music that is usually a style of fast heavy electronic dance usually without vocals. There will be a VIP section in each area where at least 50-60 can fit at a time and the closing time for the club will be 10:30 pm. MARKET ANALYSIS SUMMARY: As Savannah is the largest city in the U.S. state of Georgia. The population has grown by 16.6 percent in the last ten years. Now its total population is 425,528. It is considered as the largest trading area as well as it attracts millions of visitors that may be beneficial for my business. Market Segmentation: The Blac Jacks will focus on the attention of people that are above 18 as its primary customer base. On the basis of this, we have divided our customers in three segments. 1. College Students: We have created an environment that will appeal the high school college students and we are expecting an increase of 5 percent from this segment annually because of positive word of mouth. 2. Childless Young Professionals: Due to our presence in the premises of shopping center, we must appeal to single students and young adults. We are expecting an annual growth of 15 % from this part of population with the growth rate of the city as well as through increased popularity. 3. Tourists: As this city has remained a centre of attention for a large number of visitors, we are expecting an annual increase of 10% from this segment as the tourists will be able to enjoy variety of music under the umbrella of Blac Jacks Club. Market Analysis Pie STRATEGY AND IMPLEMENTATION SUMMARY: The Blac Jacks Club will be equipped with the latest Instruments and the customers will be served according to their needs. Competitive Strategy: The competitive edge of the Blac Jacks Club is the the provision of customized services to its clients. Marketing Strategy: The marketing strategy is essential to the main strategy and it includes creating awareness about the club’s unique features as well as the emphasis on the provision of entertainment. For this we will first do the advertising and then do the great opening followed by direct marketing also. We actually deliver on our promises of service, quality and unique experience rather than just marketing. Sales Forecast: The following is the sales forecast for the next three years. Sales Forecast 2012 2013 2014 (in $ ‘000s) Hip Hop level 1,346 1,480 1.628 Techno level 93 102 113 Reggae level 836 920 1,102 Total Sales $2,275 $2,502 $2,843 MANAGEMENT SUMMARY: The Blac Jacks Club is managed by the owner who is an MBA from Harvard University as well as having a long time ambition to run a music club. So the management of the company is comprised of 4 Managers including 1 president (who is also the owner). The managers are yet to be recruited. While the other club staff consists of 10 more employees. Personnel Plan: The personnel plan for the Blac Jacks Club is as follows: Personnel Plan 2012 2013 2014 (in $ ‘000s) Salaried Staff 284 298 313 Hourly Staff 107 112 118 Total Payroll $391 $410 $431 FINANCIAL PLAN: The financial plan depends upon some important assumptions: We are assuming the continued popularity of music clubs in Savannah that will increase the demand for our business. Break-even Analysis: The chart below shows the monthly break-even point. Break-even point = where line intersects with 0. Projected profit and Loss Statement: The projected profit and loss statement for the three years is as follows:   2013 2014 2015 Sales $2,275 $2,502 $2,843 -Cost of goods Sold $682.50 $750.60 $852.90 Gross Margin $1,592.50 $1,751.40 $1,990.10 -Expenses       Payroll $391 $410 $431 Marketing expenses $455 $500 $569 Utilities $227.50 $250.20 $284.30 Depreciation $91 $100 $114 Total Operating Expenses $1,165 $1,261 $1,398 EBIT $428.00 $490.72 $592.48 Interest expense 3.75 3.75 3.75 Taxes 106.0625 121.7425 147.1825 Total Profit $318.19 $365.23 $441.55 Works Cited Read More