1.0 EXECUTIVE SUMMARY
The purpose of this business plan is to establish effective and efficient goals that will aid in the expansion of this proposed entertainment and recording studio.
Y’SSUP ENTERTAINMENT STUDIOS, INC. (company) will be established in Lagos to offer audio professional recording, engineering, production/mastering, DJ services, cinematography, Artist management, promotion, voice coaching, and training services to artists in its target market. Y’SSUP ENTERTAINMENT STUDIOS is committed to creating family-friendly entertainment and believes that high-quality, engaging entertainment may be produced without losing commercial viability.
Y’SSUP ENTERTAINMENT STUDIOS is divided into two divisions: music and ancillary. Starting with pre-recorded singles and auxiliary services like music production, Jingles, demos, mix/mastering, Dj services, music production training, voice coaching, musical instrument teaching, and cinematography, the firm will compete and make income quickly. Revenue will be generated via distribution, merchandising, and concert promotion.
In the year 20__, Mr____ established the corporation.
1.1 INDUSTRY AND COMPANY
Music and auxiliary are the two departments of Y’SSUP ENTERTAINMENT STUDIOS. The company will compete and make money right away by offering pre-recorded singles and auxiliary services like music production, Jingles, demos, mix/mastering, Dj services, music production training, voice coaching, musical instrument education, and cinematography. Revenue will be generated via distribution, merchandising, and concert promotion.
Each of the albums that Y’SSUP ENTERTAINMENT creates and controls will provide significant short-term cash streams. By owning and controlling the rights to each of its albums, Y’SSUP entertainment studios will be able to transform its music collection into a valuable asset, making it one of hundreds of revenue-generating assets.
1.2 SERVICES AND PRODUCTS
The recording studio will provide professional recording knowledge to musicians and sound artists, among other things. The administration has chosen a number of high-end production gear to ensure that customers get the highest-quality music and sound recordings possible. In response to the demands of its customers, the firm will continue to improve and expand its recording and production services. The company will handle talent development and will solely create mainstream and adult contemporary goods. The company will also negotiate a promotional arrangement with a well-known musician. With the support of this seasoned and deputing artist, Y’SSUP ENTERTAINMENT STUDIOS might quickly join the music industry. The company will record live vocals and instruments using the finest recording equipment for the best results. The company will also provide customised music, voice coaching/music and production training, DJ rentals and videography, remixing, demos, sound tracks, music promotion, and artist management, among other things. If there is adequate demand for these things, the company will expand its entertainment services to include a record label. Once the company has built a relationship with clients and industry specialists, it will provide tailored services for any recording services that customers may need.
The devotion of Y’SSUP ENTERTAINMENT STUDIOS to promote each of its talents will set it apart. In contrast to the typical scenario in which a record company spends more money producing music and funding the artist’s welfare than they do on marketing and promotion, Y’SSUP ENTERTAINMENT STUDIOS will rely on a stable of experienced and resourceful producers to ensure the highest quality products with limited resources within established production budgets. This, together with the resources and expertise needed to undertake strong, long-term marketing campaigns, will offer the impetus needed to create “winning” products in the marketplace.
1.4 PROJECTED SALES
As one of the company’s primary manufacturers, Chillings predicts a strong rate of expansion when operations begin.
1.5 PLAN FOR EXPANDING
Over the first one to two years of operation, the management expects a quick development of the company, with the objective of launching a marketing campaign that successfully targets artists in the target market.
1.6 COMPETITIVE EDGE/ENTRY BARRIERS
Y’SSUP ENTERTAINMENT STUDIOS has an advantage over younger entertainment studios in that it hires experienced producers who know how to titillate the product in order to enchant the market, as well as how to ensure quick success. Furthermore, the company will benefit from its strategic distribution connections and experienced management team.
2.0 MARKET ANALYSIS
The marketing and promotional approach of Y’SSUP ENTERTAINMENT STUDIOS will set it apart from other independent entertainment companies. Because of the increased popularity of “singles,” as well as conventional full-length albums, Y’SSUP ENTERTAINMENT STUDIOS will be able to generate massive income via intensive, coordinated, and persistent advertising. The pre-recorded music product success of Y’SSUP ENTERTAINMENT STUDIOS will be exploited to build profit centers in independent distribution, merchandise, and concert promotion.
2.1 TARGET MARKET
The target market for Y’SSUP ENTERTAINMENT STUDIOS is fairly wide, since the company has two divisions that specifically target the target market based on listening habits and music genres. Y’SSUP ENTERTAINMENT STUDIOS will establish distribution lines in Nigeria and other African countries, as well as outside of Africa, where there are few Nigerians and African citizens, and will therefore target the residents of those countries.
2.2 MARKET SIZE
Independent labels have been referred to as “the lifeblood of the company” by professionals in the music industry. In fact, the African music industry began to develop significantly in 2005, with independent labels accounting for over 19.2 percent of the market share, or roughly N4 billion in sales and 180 million units.
2.3 TRENDS IN THE MARKET
With a unit volume of approximately 345 million records sold, the Nigerian record industry, which exploded in 2006 with a number of foreign and local Nigerian acts returning home to improve the music industry, is now dominated by artistes who perform a local genre of music known as naija hip hop, which is a fusion of American hip hop with Nigerian lyrical content or melody. Corporate groups, much as they do in India, are growing more interested in promoting local artists as a method of reaching out. At the same time as the sector is moving in the correct way, more talents are being discovered and developed. Throughout the development of new information technology, the popularity of file sharing on the internet led sales to plunge. Despite restrictions on file sharing, the internet has become an integral aspect of the music business. According to current estimates, the industry brought in more than $6 billion in revenue, with the bulk of it coming from online sales.
The music business has come a long way, and digital distribution has now superseded physical distribution as the primary method of delivering music to consumers. Smaller record labels have been able to compete on an equal footing with bigger companies as a result of this.
A SUBTLE ECONOMIC PERSPECTIVE
The entertainment industry in Nigeria is quickly growing, with several opportunities for prospective entrepreneurs, performers, producers, and managers, as well as other stakeholders. It is estimated to generate annual revenues of about 4.1 billion dollars, with Lagos state contributing roughly 3.5 billion dollars. There are roughly 3,870 sound recording studios in Lagos State, employing approximately 8,000 individuals. Because there are so many artists in Nigeria that demand high-quality audio production services, the market for sound production services is fairly large. As the cost of high-quality sound equipment falls and more rivals join the market, the music business is projected to continue to develop.
3.0 STRENGTHS AND OPPORTUNITIES
The variety of skills and Nigerian music lovers who prefer their own movies and music to that of their foreign counterparts have inspired many artists and businesses both in Nigeria and abroad. Furthermore, the fact that many firms from around the globe have started to view Nigerian entertainment as a method of promoting their goods and services in the country suggests that the industry will continue to generate revenue in the future years. The growing need is clear, as tough competition promises greater quality and larger patronage for the market.
3.1 IMPLEMENTATION & STRATEGY
Y’SSUP ENTERTAINMENT STUDIOS will have a close connection to the music industry. As a consequence of this, the entertainment studios will be able to earn from the world’s major music markets.
3.2 DEVELOPMENT OF PRODUCTS
Y’SSUP ENTERTAINMENT STUDIOS has a number of options for meeting their requirement for high-quality product manufacturing and delivery. This duty will be outsourced to some of the industry’s entertainment businesses by Y’SSUP ENTERTAINMENT STUDIOS. Vendors will be selected based on the quality of their products, their ability to fulfill delivery deadlines, their payment terms, their inventory and storage options, and their price. Y’SSUP ENTERTAINMENT STUDIOS is now evaluating a variety of entertainment groups, who will be shown alongside their previous work.
Y’SSUP ENTERTAINMENT STUDIOS is on the lookout for a worldwide distributor. Working with one of these companies will enable the business to immediately expose its music products to the world’s main music markets while also earning a certain amount of money for each CD sold.
3.3 STRATEGY FOR THE INTERNET
In response to the growing popularity and need of having an online presence, Y’SSUP ENTERTAINMENT STUDIOS will create and develop an online presence for itself. Using the most up-to-date web site technology, the firm’s web site will be built to advertise the business, announce and publicize new releases, offer corporate goods and items, and give e-mail communication. Visitors to the website will be able to listen to snatches of music performed by Y’SSUP ENT artists utilizing cutting-edge technology. Each artist that signs with the business will have their own page on the internet. The audience will be able to learn more about the artist or group as a result of increasing public exposure.
4.0 MARKETING STRATEGIES
The management of Y’SSUP ENTERTAINMENT STUDIOS intends to engage a competent advertising and marketing firm to help the business reach its target market’s desired musician’s audience.
The business will also execute a complete marketing effort to ensure maximum exposure of the company and its target music market; a breakdown of the recording studio’s marketing techniques and goals can be seen below.
In this campaign, traditional print and media advertising, as well as internet advertising, will be utilised (via the website described below). Because the recording studio works with a diverse group of musicians and sound artists, a direct marketing approach will be crucial to its success. In addition, the firm will establish ties with local and international record labels, as well as conduct a modest local marketing campaign that will include flyers, stickers, business cards, and advertisements in selected music journals, newspapers, and magazines. The firm will also maintain a full website with photographs of the studio, studio equipment, and recording rooms, as well as streaming instrumentation samples and the sale of artiste songs through the iTunes channel. Chillings interns will use a range of internet marketing techniques to drive traffic to the website, including pay-per-click advertising (for those seeking recording studios in a certain area) and advertising on sites like myspace.com and other widely used online web channels.
Using Chillings, Y’SSUP ENTERTAINMENT STUDIOS has devised a simple but powerful marketing technique. The key marketing objective for Y’SSUP ENTERTAINMENT STUDIOS products is to devise a strategy for delivering the product to the targeted target market at a cheap cost.
This will be accomplished through publicity, community outreach, advertising, art direction, radio promotion, independent promoters, broadcast music videos, touring, retailer co-op advertising, motion picture tie-ins, alternative distribution outlets, the Internet, dance club promotions, mailings, and phone follow-up marketing strategy.
4.1 PROFILE OF THE CUSTOMER
A musician or sound artist wishing to have an album created for him or her is the studio’s usual client. According to management, the bulk of the company’s consumers would be amateur musicians hoping to get into the music business. The recording studio’s services will appeal to a wide range of musical styles, making the typical customer difficult to pin down.
4.2 MARKETING STRATEGY
Given the monthly flow of items generated for the music/video business (1,200 new releases) throughout the globe, guaranteeing each production’s visibility is crucial. Establishing adequate marketing and promotion expenses may secure a single’s or album’s financial success. Y’SSUP ENTERTAINMENT Y’SSUP ENTERTAINMENT Y’SSUP ENT If budgets are properly organized, music will generate major revenue streams from each of its projects. Each campaign will have three phases: “single” promotion through music video and airplay; two: media exposure via radio, television, and the internet; and full-length album release and promotion.
4.3 ALLIANCES STRATEGIQUES
Major record companies often invest in indie labels when they have confidence in their roster and management. The larger company may invest in these strategic alliances and joint ventures to help with: a) the completion of record projects, b) the production of compact discs and cassettes, and c) marketing and promotion tactics.
Y’SSUP ENTERTAINMENT Music will make use of its distribution network to distribute projects from smaller, independent musical enterprises. The company’s close, personal connections with both large distribution corporations and Groups are critical in enabling it to capitalize on this opportunity. Y’SSUP ENTERTAINMENT STUDIO will be able to charge a middleman fee for the distribution and production of other businesses’ goods because it will be able to demand top dollar from these global and local distribution organizations. Y’SSUP ENTERTAINMENT STUDIOS may earn between $2.50 and $3.00 for each item created and delivered.
Y’SSUP ENTERTAINMENT executives will begin talks with a number of record labels throughout the nation that are interested in cooperating with the firm. Other large labels considering working with Y’SSUP ENTERTAINMENT STUDIOS will be judged on the strength of the company’s management, the quality of the artist and product, and the marketing and promotion budget.
5.0 OPERATING SYSTEMS
At Y’SSUP ENTERTAINMENT, Vice Presidents will be in charge of all parts of the company, including Marketing/Sales, Artist Development, Publicity, Promotion, Artist Relations, Artist & Repertoire, and Creative Services. Y’SSUP ENTERTAINMENT Vice President will handle the majority of these responsibilities for the company with the support of shared administrative professionals. As the company grows in terms of sales revenue and the number of recording artists, more staff will be employed to provide needed help. In order to reduce unnecessary overhead, staff should be rotated as often as possible.
- Create a profitable, well-known, and stable entertainment company.
- Obtain profitability and positive month-to-month cash flow by the end of 2016.
- Meet your fiduciary responsibilities to your investors.
- Position the company such that the success of Y’SSUP ENTERTAINMENT STUDIOS benefits investment partners, founders, and employees financially.
5.2 EXIT STRATEGY
When Y’SSUP ENTERTAINMENT STUDIOS approaches profitability and establishes a stable business, many viable exit options become available. Y’SSUP ENTERTAINMENT STUDIOS might be bought out by a major record label, or the company’s owners could liquidate their shareholding by selling their shares to management or outside investors.
6.0 Summary of Leadership
6.1 STRUCTURE OF ORGANIZATIONS
The Vice President of the label will report to the President, who will report to the Board of Directors of Y’SSUP ENTERTAINMENT STUDIOS.
The future of Y’SSUP ENTERTAINMENT STUDIOS is described by _________, President and Chairman of the Board.
Y’SSUP ENTERTAINMENT STUDIO will be led by as its COO/CFO. Emana Saintly A.K.A Chillings, a brilliant producer and recording artist with a bachelor’s degree in business administration from Nigeria’s University of Calabar, will provide Y’SSUP ENTERTAINMENT STUDIOS with a wealth of practical business advice and knowledge.
And will bring to Y’SSUP ENTERTAINMENT STUDIOS’ leadership a unique blend of entertainment and general business skills. In this position, Chillings will be responsible for artist development, artist negotiations, and music composition.
Chillings will refine and strengthen management and production talents with New Sounds and contemporary rhythms, and will establish a varied foundation with professional personnel in finance and banking, as well as substantial entertainment industry knowledge. Chillings will establish a network of links in the realms of contemporary and African music. The whole management board of Y’SSUP ENTERTAINMENT STUDIOS will benefit from relationships with other well-known artists, event organizers, program directors (radio stations), and other music stakeholders throughout Nigeria.
Chillings has a wide spectrum of expertise in the industry. He was most recently a significant producer for List Entertainment, where he worked with omowumi, dbanj, olu maintain, black magic, and yemi alade, as well as rehearsing with a lot of notable artists. Chillings has developed a strong network of personal ties with radio promoters, artists, producers, and executives as a consequence of his competence in the Afro pop/ reggae R&B sector of the music industry. Y’SSUP ENTERTAINMENT STUDIOS will be able to have an immediate effect in the marketplace as a result of these relationships.
6.3 MEMBERS OF THE STAFF
A capable, experienced, and talented staff will be selected to operate Y’SSUP ENTERTAINMENT Music and its auxiliary. Staff members will develop their expertise in areas such as project creation, artist & repertoire, marketing, and artist promotion. These individuals will develop and market projects in the hopes of garnering nominations for headies and other prizes. This crew is ready to put its collective abilities to work to assure Y’SSUP ENTERTAINMENT STUDIOS’ continuous growth and profitability.
Y’SSUP STUDIOS will assemble a highly skilled management team. These experts’ projects will be aimed at reaching the top of Billboard’s charts, receiving nominations for local headies awards and other international nominations, and selling copies of records via direct contact and partnerships with marketers all over the globe. Because of its connections with competent music industry experts and creative businesses, Y’SSUP ENTERTAINMENT STUDIOS will be able to generate money straight away.
Because of their expertise and experience, the major producers and executive members will be able to bring the company to profitability within the first year of operation.
7.1 FINANCIAL OPTIONS
The interest rate and wage agreement for the firm will be discussed further throughout the discussion.
Y’SSUP ENTERTAINMENT STUDIOS will provide a variety of investment options to fulfill the needs of both short-term and long-term investors. The company will make every effort to keep its finance structure simple and adaptable.
Common stock and debenture shares will be published and negotiated in more detail.
7.3 FINANCIAL UTILIZATION
The cash will be used to establish corporate offices, manage overhead expenses, recruit and secure artists, pay project production budgets, and cover a range of marketing and promotion charges.
7.4 PROJECTIONS FROM INCOME STATEMENTS
Y’SSUP ENTERTAINMENT STUDIOS expects to earn more than million in its first year, rising to million by 2020. Profits are estimated to be $ million in 2020.
Pre-recorded song sales will account for the bulk of Y’SSUP ENTERTAINMENT STUDIOS’ income. Examples include compact discs (CDs), CD singles, enhanced CDs, and digital music formats. In order to anticipate revenue, management will estimate variable unit quantities for each of its projects. Sales will begin within fifteen months of the book’s release. The following unit forecasts will be promptly achieved and exceeded based on the intensity of Y’SSUP ENTERTAINMENT STUDIOS marketing plan/budget for its productions.
Y’SSUP MUSIC –
For every full-length compact CD sold, Y’SSUP ENTERTAINMENT STUDIOS will earn about . Approximately is the current retail price. Revenue will be generated through digital music sales on iTunes and other online merchants. Y’SSUP ENTERTAINMENT STUDIOS plans to release three to four singles from each full-length album project. Revenue predictions in the financial model are based on the “single” sales assumptions listed below.
3 SINGLES BY Y’SSUP MUSIC –
Y’SSUP ENTERTAINMENT’s profit centers will include distribution services, video sales revenue, item sales revenue, and concert promotion money. As Y’SSUP ENTERTAINMENT and its artists’ reputations expand, these sectors will increase in size and importance, accounting for less than 1% of the company’s revenues at first.
7.6 PROJECTIONS OF CASH FLOW
After 29 months, Y’SSUP ENTERTAINMENT will be self-sustaining and cash flow positive. The firm shall maintain a cash balance of at least nine months of operations costs to provide a suitable cushion for collecting receivables and unplanned expenditures connected with this business.
7.7 SHEET OF BALANCE
Y’SSUP ENTERTAINMENT is expected to have around million in cash and liquid assets after four years, with total assets of more than million. With just $ million in liabilities, retained profits are expected to expand swiftly, increasing investors’ net value.
A/R collections are estimated to take 1 to 29 days on average, with the remainder falling between 90 and 120 days. The distribution business, which will collect money directly from retailers and subsequently refund Y’SSUP ENTERTAINMENT, will account for the bulk of Y’SSUP ENTERTAINMENT’s accounts receivable. Due to the industry’s long history of A/R financing, Y’SSUP ENTERTAINMENT will use A/R Financing to maintain its financial position in the first two years of company, or longer (usually 60 days). There is a percentage A/R financing cost in the financial model. The size, strength, and reliability of Y”SSUP ENTERTAINMENT’s distribution partners will provide a solid platform for the company’s conventional financial institution or A/R Factor to establish a working partnership for Y’SSUP ENTERTAINMENT’s paper.
will be anticipated with caution for upcoming record releases and items. Despite the fact that lead times for manufactured products are typically two weeks, Y”SSUP ENTERTAINMENT’s financial model estimates inventory purchases as percent -60 days prior to sale and percent – 30 days prior to sale. The creator will keep the majority of the pre-recorded music and ship it directly to the distributor’s fulfillment and distribution centers. A small batch of samples (1,000-2,000 units) and promotional materials will be kept on hand at the Y’SSUP ENTERTAINMENT corporate headquarters.
Accounts Manufacturing A/P
and Artist Royalty/Mechanical A/P are the two kinds of payables used in this financial model. According to the cautious approach, the model is created with Manufacturing A/P being paid in the same month as the expense. In August and February of each year, royalties will be collected and paid out.
Budgets for project production vary depending on the type of the project. Due to existing relationships and affiliations in the industry, Y’SSUP ENTERTAINMENT is able to produce its projects in ninety days for around half the cost of a major label record company. The following Items are required for Y”SSUP MUSIC projects.
Marketing and promotion budgets
Marketing and promotion budgets differ depending on the genre of music. R&B and contemporary projects will be given priority, whereas Afro pop projects will be assigned around. Marketing funds will run out during the course of a 12-month campaign.