Professional Documents
Culture Documents
Recording Studio
Business Plan
DRAFT
TIMOTHY NJAGI
10-7-2016
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Timothy Njagi in this
business plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of the above named.
___________________
Signature
___________________
Name
___________________
Date
Executive Summary
PlayMakr® Music Recording Studio will be a one stop and standard recording studio that is fully
equipped with the latest technology in the recording studio industry. Our recording studio will
be located in the heart of Nairobi – Kenya and we are positioned to work for a wide range of
client ranging from individual music artists to corporate organizations such as branding and
advertising agencies et al.
PlayMakr® Music Recording Studio is not just going to be engaged in the recording music for
musicians, but we will also open our doors to corporate organizations who would want to record
jingles for advertisement purposes and also authors who would want to record their audio
books, podcasts and other related works. Our business goal is to work towards becoming one of
the leading recording studio brands in the whole of Nairobi and in the nearest future compete
with the leaders in the industry not only in the Africa but also in the global stage.
We are not ignorant of the fact that building a standard and world class recording studio from
the scratch requires huge capital base especially for the purchase of world-class studio
equipment (music production gadgets) et al, which is why we wish to secure from our business
partners with interest in our line of business. We also have plans in place for steady flow of cash
to ensure sustainability & future growth/expansion. We can confidently say that with robust
financial standing, we shall be ready to take on any challenge that we encounter in the industry.
At PlayMakr® Music Recording Studio our client’s best interest will always come first, and
everything we do will be guided by our values and professional ethics. We will ensure that we
hold ourselves accountable to the highest standards by meeting our client’s needs precisely and
completely. We will cultivate a working environment that provides a human, sustainable
approach to earning a living, and living in our world, for our partners, employees and for our
clients.
PlayMakr® Music Recording Studio is founded majorly by Timothy Njagi. Timothy (alias
PlayMakr) is a seasoned music producer and sound engineer with over 5 years of experience in
the music industry working for two of city’s hot independent recording studios and will be the
administrative head of the business.
Music Recording
Sound Production
Studio Session for clients
Production of Jingles and Soundtracks for Organizations
Setting up of Recording Studios for Clients
Production of Audio Books
Music / Sound Consultancy and Advisory Service
Vision Statement
Our vision is to become the number one choice when it comes to recording studio in the whole
Nairobi – Kenya.
Mission Statement
Our mission is to build a world class and well equipped recording studio that will become the
one of the most preferred choice for both music artists and publicity and advertising agencies
especially those that are involved in the production of jingles and soundtracks in Kenya.
Business Structure
The success of any business is to a larger extent dependent on the business structure of the
organization and the people who occupy the available role. PlayMakr® Music Recording Studio
will build a solid business structure that can support the growth of our recording studio
business. We will ensure that we hire competent hands to help us build the business of our
dream.
The fact that we want to become one of the leading recording studio brand in the industry in
the whole of Kenya makes it highly necessary for our organization to deliberately build a well-
structured business from the onset.
We will work hard to ensure that we only attract people with the right mindset to help us
achieve our business goals and objectives in record time. Below is the business structure that we
will build PlayMakr® Music Recording Studio Company;
Chief Executive Officer
Entertainment Lawyer / Legal Secretary
Studio Manager
Music / Record Producer
Sound / Recording Engineer
Admin and HR Manager
Marketing and Sales Executive
Accountant
Front Desk Officer
Studio Manager
Responsible for tracking hours during studio session and billing clients.
Responsible for managing the company’s recording studio
Part of the team responsible for selecting the songs that will be promoted and the songs
that will be sold as singles.
Handle any other responsibility as assigned by the Chief Executive Officer
Accountant
Responsible for preparing financial reports, budgets, and financial statements for the
organization
Provides managements with financial analyses, development budgets, and accounting
reports; analyzes financial feasibility for the most complex proposed projects; conducts
market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one
or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company
Part of what the business consultant did was to work with the management of the company in
conducting a SWOT analysis for PlayMakr® Music Recording Studio. Here is a summary from
the result of the SWOT analysis that was conducted on behalf of PlayMakr® Music Recording
Studio;
Strengths:
Our core strength lies in the power of our team and the state of the art recording studio
equipment that we have. We have a team that can go all the way to give our clients value for
their money; a team that can produce world class musical sounds. We are well positioned in the
heart of Nairobi and we know we will attract loads of clients from the first day we open our
music production studio for business.
Weaknesses:
As a new recording studio in Nairobi, it might take some time for our organization to break into
the market and attract some well – established music artists and bigger corporations to record
in our studio; that is perhaps our major weakness. Another weakness is that we may not have
the required cash to pump into the promotion our business the way we would want to.
Opportunities:
The opportunities in the music industry are massive especially in Nairobi, and we are ready to
take advantage of any opportunity that comes our way.
Threats:
Technology and the internet which of course is a major tool for the advancement and gains
achieved in the music industry can also poses a threat to the industry. The truth is that with the
advancement of technology, it is now easier for individuals to mix up their sounds and even
form soundtracks with the help of music production software applications.
So also, just like any other business, one of the major threats that we are likely going to face is
economic downturn. It is a fact that economic downturn affects purchasing / spending power.
Another threat that may likely confront us is the arrival of a new recording studio or music
production company in same location where our target market exist and who may want to
adopt same business model like us.
Market Analysis
Market Trends
Entrepreneurs who are venturing into the music industry are coming in with creativity and good
business skills. The fact that revenue is nose – diving in the industry does not in a way stop some
recording studio companies from declaring profits year in year out.
The trend in the recording studio cum music production industry is that most recording studio
companies are trying as much as possible to recreate themselves on a regular basis and also to
be on top of their game. This is so because it is easier to find music mixer or music production /
recording software applications that a rookie can make use of to produce good sound without
stress.
Target Market
When it comes to music recording or music production, there are no exemptions to who you
can market your services to. There are loads of people out there who are interested in releasing
a single or a full musical album. There are corporate organizations that would need to services
of a standard recording studio companies to help them produce jingles or soundtrack for
advertisement and promotion purpose. There are authors who would need the services of
recording studios to help them record their audio books and the list goes on.
Over and above, our target market as a recording studio company cuts across people of
different class and people from all walks of life and corporate organizations.
In view of that, we have created strategies that will enable us reach out to various corporate
organizations and individual who we know will our services. We have conducted our market
research and survey and we will ensure that our recording studio attracts the kind of clients we
would love to work with.
Below is a list of the people and organizations that we have specifically market our services to;
Music Artists
Record Labels
Advertising Agencies
Corporate Organizations (Branding and Advertising Agencies et al)
Churches
Radio and TV stations
Upcoming Artists, performers
Authors (Audio book recording)
Competitive Advantage
We are mindful of the fact that there is competition in the recording studio cum music
production industry in Kenya; hence we have been able to hire some of the best business
developer to handle our sales and marketing.
PlayMakr® Music Recording Studio might be a new entrant into the recording studio line of
business cum music industry in Kenya, but we are coming into the industry with young
professionals who understand the current musical trends and of course a standard world-class
recording studio with the best equipment in the industry.
Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category (startups music production companies) in the industry meaning that
they will be more than willing to build the business with us and help deliver our set goals and
achieve all our aims and objectives.
Our sales and marketing team will be recruited base on their vast experience in the music
industry and they will be trained on a regular basis so as to be well equipped to meet their
targets and the overall goal of the organization. We will also ensure that our excellent music
production / top class music speaks for us in the market place; we want to build a standard and
well equipped recording studio that will leverage on word of mouth advertisement from
satisfied clients / artists.
Our business goal is to build our recording studio business to become the number one choice in
the whole of Nairobi – Kenya which is why we have mapped out strategy that will help us take
advantage of the available market and grow to become a major force to reckon with not only in
the U.S but in the world stage as well.
PlayMakr® Music Recording Studio is set to make use of the following marketing and sales
strategies to attract clients;
Introduce our business by sending introductory letters alongside our brochure to
organizations and key stake holders in the music industry in Nairobi and other parts of
Kenya.
Advertise our business in relevant entertainment magazines, newspapers, TV stations,
and radio station.
List our business in local directories.
Attend relevant international and local music expos, seminars, and concerts et al
Create different packages for different category of music artists, authors and corporate
clients in order to work with their budgets and still produce top notch music, jingles,
audio book and soundtrack for them
Leverage on the internet to promote our business
Engage in direct marketing approach.
Encourage word of mouth marketing from our loyal and satisfied clients
Sources of Income
PlayMakr® Music Recording Studio is established with the aim of maximizing profits in the
recording studio cum music industry and we are going to go all the way to ensure that we do all
it takes to attract our target market. PlayMakr® Music Recording Studio will generate income by
offering the following services;
Music Recording
Sound Production
Studio Session for clients
Production of Jingles and Soundtracks for Organizations
Setting up of Recording Studios for Clients
Production of Audio Books
Lease of Studio and Musical Equipment
Music / Sound Consultancy and Advisory Services
Sales Forecast
One thing is certain when it comes to music; music never dies and the demand for good music
will continue to grow. This goes to show that any recording studio company that is known to
always produce good music or voice recording will continue to attract talented music artists,
corporate organizations and authors and that will sure translate to increase in revenue
generation for the business.
We are well positioned to take on the available market in Nairobi – Kenya and beyond and we
are quite optimistic that we will meet our set target of generating enough income / profits from
the first six month of operations and grow the business and our clientele base beyond Nairobi
to other cities in Kenya and even the global market.
We have been able to critically examine the recording studio cum music production market and
we have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projection is based on information gathered on the field and
some assumptions that are peculiar to startups in Los Nairobi – Kenya.
Below is the sales projection for PlayMakr® Music Recording Studio, it is based on the location
of our business and other factors as it relates to record label start – ups in Kenya;
N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown and there won’t be any major competitor
offering same studio / music production services as we do within same location. Please note that
the above projection might be lower and at the same time it might be higher.
Pricing Strategy
It is important to point out that, though, music studio charge by the hour so it is the
responsibility of the music producer to ensure that set target are met within the stipulated time.
The more time you spend on the studio, the more money you would have to pay.
No doubt, hourly billing for music studios is a long – time tradition in the industry. However, for
some types of music / record contracts, flat fees are adopted. As a result of this, PlayMakr®
Music Recording Studio will charge our old clients (artists) a flat fee and charge new clients (new
music artists) hourly when they make use of our music studio to record their music or produce
music beats for their albums.
At PlayMakr® Music Recording Studio we will keep our fees below the average market rate for
all of our clients by keeping our overhead low and by collecting payment in advance. In
addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and
small social enterprises who engage our services to help to produce musical jingles for advert
purposes and authors who would need our services to record their audio books and podcasts.
Payment Options
At PlayMakr® Music Recording Studio, our payment policy will be all inclusive because we are
quite aware that different people prefer different payment options as it suits them. Here are the
payment options that we will make available to our clients;
In view of the above, we have chosen banking platforms that will help us achieve our plans with
little or no itches.
Below are the platforms we intend to leverage on to promote and advertise PlayMakr® Music
Recording Studio;
Basically, it is not expensive starting a recording studio company in Kenya except for the prices
of setting up a standard and well-equipped studio. The amount required to start a music
production company may vary slightly from country to country and from states to states. Other
factors that can influence the start – up cost of a recording studio company is the amount
needed to rent or lease a facility, the cost of the equipment you would need and the money
needed to brand your business et al.
When it comes to purchasing microphones and head phones, we will go for Focusrite 3-in-1 set
(which comes with a pair of headphones, condenser microphone and a standard USB audio
interface); it will cost us about KShs. 40,000/- or more. For the mixer, we will go with Presonus or
any other brand of our choice. But Presonus is great (especially with is great sounding pre-amp
and on board DSP effects). It will cost us about KShs. 60,000/- or more.
On the alternative, we can choose to go for purely digital and skip the mixer altogether. This
means that we will need a good audio interface with multiple inputs and outputs (8 stereo pairs
minimum). M-audio is a good brand. Then cables (Soundking cables are the best audio cables in
the market for now; although we may explore other options)
We would need to create budget for pre-amp. Behringer is perhaps our best bet and we can get
it for about KShs. 15,000/- or less.
We have also prepared a good budget for studio monitors; monitors are one of the most
important gadgets we would need in starting our own record label and record studio. We have
made provision for the Yamaha HS series monitors; they are simply one of the best we can get
in the market.
When it comes to acquiring a computer, we just have to budget for high end computer
designed for such purpose. It is important for computer to have a very large memory, high end
graphic card, and 2.6 GHz quad core processor and we will search for a good software to work
with.
Essentially, this is the area we are looking towards spending our start-up capital on;
The Total Fee for incorporating the Business in Kenya – KShs. 25,000.
The Amount needed to acquire a suitable Office facility with enough space for a standard
music studio in a business district for 6 months (Re – Construction of the facility
exclusive) – KShs. 150,000/-
The Cost for equipping the office (computers, printers, fax machines, furniture,
telephones, filing cabins, safety gadgets and electronics et al) – KShs. 70,000/-
The cost for equipping the music studio with the required gadgets – KShs. 80,000/-
The Cost of Launching the official Website – KShs. 20,000/-
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – KShs.
15,000/-
Budget for utility bills for first 3 months – KShs. 40,000/-
The budget for Liability insurance, permits and license – KShs.________
Legal fees (contract drafting, copyrights, trademarks & other intellectual property
registration) – KShs. 25,000/-
Miscellaneous – KShs. 10,000/-
Going by the report from the research and feasibility studies, we will need about KShs.500, 000/-
to set up a medium scale but standard recording studio in Nairobi – Kenya. Here are some of
the key equipment and musical gadgets that we would need to set up our recording studio;
Headphones
Microphones
Reference monitors, which are loudspeakers with a flat frequency response
MIDI Keyboard/controller
Digital audio workstation
Music workstation
Mixing console
Cables
Computers
Audio interface
CD duplicator
CD printer
Supply of CD
Generating Funding / Startup Capital
PlayMakr® Music Recording Studio is going to start as a sole-proprietor business that will be
solely owned and managed by Timothy Njagi, He will be the financial head of the business, but
may likely welcome other partners later which is why he has decided to restrict the sourcing of
his start – up capital to 3 major sources.
N.B: We have been able to generate about KShs. ________ (Personal savings KShs. ________ and
soft loan from family members KShs. ________) and we are at the early stages of obtaining a loan
facility of ________ from our bank.
We know that if we continue to record hit songs, albums, audio books, soundtrack and jingles
for both individuals and corporate organizations, there will be steady flow of income for the
organization.
Our key sustainability and expansion strategy is to ensure that we only hire competent
employees, create a conducive working environment and employee benefits for our staff
members.
We know that if we implement our business strategies, we will grow our recording studio
business beyond Nairobi – Kenya to other countries in the region in record time.