Jonny's Studio

Jonny’s Studio
Business Plan by Yilmaz Akin
Professor Smith
10/24/12

Table of Contents

I. EXECUTIVE SUMMARY II. BUSINESS DESCRIPTION a. What is my business b. Product or Services offered c. What value does my product offer the consumer III. MARKETPLACE d. My industry e. Target Market f. Competition IV. GO-TO MARKET STRATEGY g. How I will sell my service h. Pricing V. FINANCIAL DATA i. What are the start-up costs? j. How will I finance my business? k. Assumptions and revenue projections

I. Executive Summary As an experienced musician I understand that it is hard and time consuming to go to different locations and deal with different people to get the services that an artist needs. An artist needs photos, music videos, and most importantly a studio to record their music. This is where I combine
all three into one studio. An artist can come record their music, have a photo-shoot and even shoot a music video all at one place. Since my business is combining three separate services it will be entering three different markets. Through social networking and advertisements I can reach my target market, which will be musicians from every genre of music. With the right marketing strategy and good service I feel this business will do great within the ever-changing entertainment industry.

II. Business Description Jonny’s Studio will be an all purpose studio including top of the line audio recording, photography and videography.
The audio recording part of the business will include a fully equipped soundproof recording booth with XLR condenser microphone with great audio quality and a trained engineer who will edit according to the artists style and needs. The photography & videography part of Jonny’s Studio will include film and DSLR photography and 1080 resolution videos with a fully equipped indoor studio and lighting or outdoor shoots depending on what the artist’s needs are. What sets Jonny’s Studio apart from other studios is the fact that it can give three separate services in one place. Instead of dealing with three different companies the artist can deal with one and get all their needs taken care of at one place. This also creates a connection between the artist and the studio because visions can be shared and all aspects of the artist’s image and sound will be managed by one place, which makes it easier to handle, more efficient and more
creativity.

IV. Market Place
Jonny’s Studio will mainly be working with artists in the entertainment industry. This doesn’t mean that the only customers will be musicians. The fact that Jonny’s Studio offers three different services will leave the door open for many business opportunities including commercial media, model photography, voice overs for films and cartoons. This opportunity can be later expanded through target marketing. According to LA Times the music recording industry is at its lowest because of home studios, but having a combination of photography and videography it enters Jonny’s Studio into two other industries that can be the cushion for the recording studio. According to ibisworld.com the photography industry revenue is expected to rise in the next five years if focused on niche markets. Once we reach our target market and find our niche the business will become solid. The need for videographers and editors is expected to rise 5% from 2010 to 2020, which is not much compared to other occupations but we look at this statistic while keeping in mind that our studio will be offering three different services in one, which is very rare and almost never seen before. Competition will be against other photography studios, recording studios like Omega Recording Studio, Blue House Productions and videographers in the DC metro area. I will be competitive because I want to provide the best service possible, better than the competition.

V. Market Strategy
My marketing strategy will consist of a strong Internet presence through social networking, a great website backed by Internet and newspaper advertisements. We will even consider going to nightclubs and other nightlife scenes that brings musicians and entertainers together and pass out flyers. The pricing for recording alone will be an hourly rate of $40 an hour, which will rise as the studio becomes more popular. We will also provide bundle packages with a base price that will cover a 10 track album, a complete indoor and outdoor photo-shoot with video coverage, and a music video that will cover two singles from the album. The prices for the bundle packages start from $10,000 but will vary from artist to artist. Customers can make a deposit with half of the full amount and the rest after the work is complete. Photo-shoots alone will vary depending on the subject and how many photos requested. Prices start at $250 and up which includes graphically enhanced pictures. Videography alone will start at $1,000 for music videos and commercials but will also vary depending on the length of the film.

VI. Financial Data The start up costs will be about $6,000. This includes the rent for the first month, which is $1500 monthly. An AKG microphone for recording will cost about $400. Building a soundproof recording booth will be an estimated to $400. A multi purpose computer for all three aspects of the business will cost about $1000. Lighting and camera equipment will cost around $2,700. In order to finance Jonny’s Studio I will attempt to reach out to micro lenders, credit unions and as the last resort credit cards. In the first year I will earn $60,000, which means about $36,000 profit. This projection is based on the assumption that my business will be making about $5,000 a month. Now if Jonny’s Studio enters the three markets successfully this will bring in more revenue, this could mean almost $10,000 a month, this could mean earning up to $120,000 a year.