Business Plan

For
New Star Bands

A Tour Management Company
Teddy Chilton

Contents










Overview of Business Proposal............................................................................................................................... 3

Estimate of Personal Worth ..................................................................................................................................... 4

Survival Income ....................................................................................................................................................... 5

BUSINESS PLAN .................................................................................................................................................... 6

Nature of Business .............................................................................................................................................. 6

Resume of Owners/Managers ............................................................................................................................ 6

Short and Medium Term Objectives ................................................................................................................... 7

Market ................................................................................................................................................................. 7

Premises, equipment and vehicle requirements ................................................................................................. 8

Start Up Costs ..................................................................................................................................................... 8

Investment Required ........................................................................................................................................... 9

Sources of Finance ........................................................................................................................................... 10





Overview of Business Proposal

Im setting up a tour management company. Targeting and providing a service to Artist managers will
require me to plan, market and promote a tour for one or more of their artists, who seek recognition in
the music industry. I will plan everything from transport, accommodation and venues for the gig.

The key services of my business it to provide:

1. Precision planning and organisation for the Artist tours
2. Logistics for Artists, their entourage and equipment
3. Transport
4. To provide a point of difference for the whole experience to ensure a beneficial result
5. To provide this service at a very competitive price, offering great value for money whilst
ensuring the point of difference

Start up specifics:

A key element in the start up is the transport element. With the proposed investment my company will
purchase our own mini bus for the tours including a trailer. We also have good connections with
personal drivers who will take the band on tour. The personal driver, who will be trained in a specific
way, will also require accommodation along with the band. This will all be planned and organised by
the company. My main aim with the company is to make sure that all the band and crew are happy, as
well as making sure that the tour is running smoothly. I will be running and organising it all from an
office, which I will have to rent.

The main costs of this business proposition will be spent on accommodation, transport, equipment and
the crew involved on the tour. It will be very important to keep tight control on budgets. I will have a
list of dates and the income that be received from each show, thus enabling me to keep tight control on
cash flow. But first it is vitally important to know the cost to do these shows. Will any profit be made
or will we just be breaking even? A cost benefit analysis will be core in my calculations.

Investment required 25,000

These elements will be a key part of my budgeting and planning:

Wages
Per diems
Accommodation
Transport
Sound
Lighting
Back line
Production
Rehearsals





Estimate of Personal Worth






Property
Value of house


-800,000
Value of other property

300,000
-
Savings/Insurance
Surrender value of insurance policies

-100,000
Cash in bank/on deposit

500
Other Assets
Value of car(s)


-
Other assets



3,000
Total Assets

1,203,500
Liabilities
Outstanding mortgage


300,000
Regular payments



Other outstanding loans


Bills currently due for payment


Total Current Liabilities

300,000
Estimated Net Assets
(Total assets less total liabilities)
903,500










Survival Income



per annum
Estimated Expenditure
Mortgage/Rent

7,000
Council Tax and water rates 1200
Gas, electricity & oil 1,200
All personal & property insurance 200
Food, general housekeeping expenses 800
Clothing 400
Telephone 200
Hire charges (tv, video, etc.) NA
Entertainment, (meals and drinks) 2000
Subscriptions to associations, journals etc., NA
Car tax and insurance 2250
Car running expenses 1000 based
on some
people I have
asked who live
by themselves.
Car service and maintenance NA New car
Childrens expenditure and presents NA
Savings plans 600
HP repayments NA
Other (please state NA


Contingencies NA
Sub-Total (a) Expenditure 16,850

Estimated Income
Income from family/partner (total)
30,000
Other income (please state) NA



Sub-Total (b) Income 30,000

Total Survival Income
Required in the Year i.e. (a) (b)
13,150









BUSINESS PLAN


Nature of Business

a) Details of trading activities.

Check out the venues, suitability, capacity, safety, potential income
Liaising with clients
Organising the logistics
Identifying clients and business opportunities
Designing marketing strategies
Setting up meetings
Selling products and new campaigns
Maintaining a good understanding of clients
Ensuring the companys outgoings are paid on time
Training of staff

b) Date of commencement

1
st
January 2015

c) Expected date of commencement (new business only)

1
st
January 2015

d) Business type

Sole Trader


Resume of Owners/Managers

a) Personal Background:

3 years working at Phyllis Court (silver service waiting)
Current studying music BTEC at Henley College
Work experience at Warburg Nature Reserve
2 weeks volunteering at childrens home I Nepal teaching them Jazz and Blues guitar
Regular jazz guitar performer in theatres, bars, pubs either as an ensemble or solo
17 years old
GCSES: 3 As, 5 Bs, and 2 Cs

b) Current Employment

Part time waiter and jazz guitarist

c) Training

Study 2 years at SAE institute or BIMM on tour management






Short and Medium Term Objectives

Year 1:

Set up, source necessary components, build customer base

Put energy into Marketing and relationship building

Receive a net profit in year 1 of 50,000

Year 2:

By year 2 I aim to have 15 artists under my belt.

Lower costs than rival companies

Try to obtain a higher market share

Achieve a net profit of 100,000


Market

a) The Market

Music industry. Competitive industry with lots of tour management companies. They have variable positions
in the market place but are mainly high end and expensive, aimed mainly at the well paid stars. The gap is
to provide a more supporting service for new artists, as in this area it is less professional and they will get
less support.

b) Detail of product/service.

1.To provide a complete and unique tour service for new and burgeoning artists
2. To offer a point of difference to other businesses. This will be done through my own personal input of
enthusiasm and energy (given my understanding of Artists) but also through all staff, whom I will personally
train
3. 12 seat mini-van with trailer that will be nicely decked out and will make touring fun and comfortable. I
have friends who can help me put in some decent second hand audio visual equipment.

c) Details of current competitors

Blacklight Tours http://www.blacklighttours.co.uk
They offer high quality luxury mini vans for high class clients

d) Points of Difference

New Star Bands will own a mini-van with trailer for equipment. This includes a full time professional driver to
take artists to the venues and hotels for the tour. We are a reliable and trustworthy company, all venues are
checked out beforehand to make sure that they are suitable for live music but can also provide good profit
opportunities.

e) Marketing and Promotion

Need to search for new and upcoming artists in first 3 years who show much promise. By helping these
artists reach the top will encourage already noticed artists to come my way as a tour manager.








f) Customer base and our USP

Customers will approach me because my ambition is simple. I want to promote new exciting musicians and
help them reach the top as quickly as possible. I will help them reach the top by organising tours that will
take the public by storm. I will also add value by creating a strong positive ethos within my team. Everyone
will have a can do attitude and will be trained to deal with stressful scenarios, being equipped with solutions
to all issues (within reason!)


g) My knowledge and experience

I have studied music my whole life and have a strong passion for live music. I want to get involved in
promoting other upcoming bands by organising them some of the biggest tours.


Premises, equipment and vehicle requirements


Premises

I hope to gain an investment, which will help me to afford a studio apartment or office, which I can work
from.

Premises can be very small and low cost to begin with to keep overhead as low as possible. I just need one
office and an area for visiting prospective clients and bands. I will need a large, free parking spot outside for
the mini van and trailer.


Vehicles

Details of present vehicles including estimated value and hire purchase commitments.

Product ideas:

Minivan with trailer

Future Possibilities:

Coach

Helicopter (the ultimate mode of travel for a rock star!)


Start Up Costs


Capital Costs:
10,000 on a second-hand Ford minibus.

1,300 on box van trailer for musical equipment.

Variable Costs:
1,000 a month for office space
50 a month for Stationery
20 a month for Phone
100 a month for Utilities
100 a month for business rates
1,800 a month for the driver
TOTAL = 3,070 a month or 36,840






Investment Required

Finance required for capital investment is detailed in the chart below

Finance required for working capital will amount to 3,070 a month

Finance required for equipment


Type and make of
equipment
New/
Second
hand

Price
Install
Charge
Carriage
Charge

VAT

Total

Ford Mini-bus



Box Van Trailer








2
nd
hand



NEW





10,000



1,300

NA



NA

NA



NA

NA



260
10,000




1,560

11,560



Estimated Income/Turnover

It is estimated that in the first trading year we can achieve a sales turnover of 200,000 with management fees. I
have assumed that we will have 5 key clients in our first trading year and whilst the first three months will show
limited income owing to the business start up, the final three months will prove fruitful.






Sources of Finance


Own Resources ........................................................................................................ 3,000

Bank ........................................................................................................................ 500

Loan/Investment ....................................................................................................... 25,000

Other Public Sector
(Local Authority, Enterprise Allowance, etc.) .......................................................... 5,000? From Arts Council


Total 28,500 not including any
potential Arts Council grant

Any Other Source (specify) No______________

Total Finance Required 11,560 for capital cost
9,210 for 3 months of
Operational cost
Balance for contingency