Business Plan Coursework Example | Topics and Well Written Essays - 2000 words

Business Plan - Coursework Example Startup capital shall be from two sources – personal investments from each partner, and a short-term bank loan, which the company sees to close by the end of its 3rd year of operations. Since the business is really more of an independent label, very little capital expenditures shall be made. The bulk of its budget will be focused on marketing and operations. The business will initially be located in one of the partner’s homes, for cost efficiency. This is where the management will meet with clients and vendors, and hold office in the meantime. It will operate on no revenue and implement a low overhead for the first year. The owners will focus on relationship marketing in order to get media partners and good costs for equipment rental during recordings. It will do tie ups with event organizers and media bodies to achieve the desired media mileage for the brand as a whole, and for all its talents. Diva Records desires to achieve equity through below the line efforts with these potential partners. II. BUSINESS DESCRIPTION AND VISION Diva Record’s vision is to promote local music groups while increasing live appearances and sales. This two-fold objective is really focused on giving back to the community by honing local talents and at the same time gaining revenues for the company to be able to sustain and expand the services. Its keys to success are as follows: 1. Careful selection of talents to sign up. There will be very rigid screening to get only the finest local talents per category. 2. Limit the number of talents to sign up to be able to stay focused on the marketing efforts. 3. Have a mix of work and fun. The music business is a fun business, and the owners, being passionate about their work, looks forward to creative improvements as time goes by. Instead of competing with the larger record labels, Diva records will apply a more focused regional approach to concentrate on local and homegrown talents. These artists’ goal is to be v isibly known in the local market, and eventually penetrate the mainstream. This group in interested in gaining exposure and be known by the local market, since as more people know them, they are most likely to get projects and gigs, and possibly produce a CD, consequently earning more revenues. Diva Records wishes to be known as a hard-working and promoting record label, with the reputation of having support for local talents. Such brand equity will bring the record label to its own place in the market. III. MARKET ANALYSIS Diva Records targets two primary market segments – record stores and consumers at live shows. The management’s focus is to develop visibility within the community, enough to be able to sign up artists which is they to gaining mileage and revenues. The two target markets that have been identified are as follows: 1. Record retailers – this segment distributes the product to end-users. This is the retail channel that ultimately moves the greates t quantity of CDs. It takes time for record stores to be able to sell these CDs as some artists need to gain following before their songs are patronized. However, Diva Records will endeavor to get the partnerships of these record stores, even going as far as sponsoring their activities to be able to have a good position in their display areas. A long-term relationship is foreseen with these establishments. 2. Patrons at live gigs and concerts –