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PlayMakr® Music

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.

It is acknowledged by reader that information to be furnished in this business plan is in all


respects confidential in nature, other than information which is in the public domain through
other means and that any disclosure or use of same by reader, may cause serious harm or
damage to the author.

Upon request, this document is to be immediately returned to Timothy Njagi.

___________________

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.

Products & Services


PlayMakr® Music Recording Studio is going to offer varieties of services within the scope of the
recording studio cum music production industry in Kenya. Our intention of starting our
recording studio in Nairobi is to make profits from the recording studio industry and we will do
all that is permitted by the law in Kenya to achieve our aim and business goals.

Our business offering are listed below;

 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

Roles & Responsibilities


Chief Executive Officer:
 Increases management’s effectiveness by recruiting, selecting, orienting, training,
coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions;
providing educational opportunities.
 Responsible for providing direction for the business
 Creating, communicating, and implementing the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the overall
organization’s strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Entertainment Lawyer / Legal Secretary


 Responsible for drawing up contracts and other legal documents for the company
 Advise artists and the organization accordingly before recording their music album or
singles
 Welcomes guests and clients by greeting them in person or on the telephone; answering
or directing inquiries.
 Produces information by transcribing, formatting, inputting, editing, retrieving, copying,
and transmitting text, data, and graphics; coordinating case preparation.
 Provides historical reference by developing and utilizing filing and retrieval systems;
recording meeting discussions; maintaining transcripts; documenting and maintaining
evidence.
 Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in professional
organizations.
 Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value to job
accomplishments.

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

Music / Record Producer


 Responsible for recording and producing music and jingles for music artists and clients
 Part of the team responsible for selecting the songs that will be promoted and the songs
that will be sold as singles.
 Helps to decide the order the songs will play in throughout the album (i.e. the songs’
track numbers).
 Responsible for choosing top notch album cover for music artists
 Handles any other responsibility as assigned by the Chief Executive Officer

Sound / Recording Engineer


 Responsible for handle any sound related job for the company; helps achieve certain
specific sounds or feelings to portray through that matches with the lyrics.
 Responsible for mixing and producing beats and sounds for our clients; mix the songs
into the final version for the music album.
 Part of the team responsible for selecting the songs that will be promoted and the songs
that will be sold as singles.

Admin and HR Manager


 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Maintains office supplies by checking stocks; placing and expediting orders; evaluating
new products.
 Ensures operation of studio equipment by completing preventive maintenance
requirements; calling for repairs.
 Defining job positions for recruitment and managing interviewing process
 Carrying out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Designs job descriptions with KPI to drive performance management for clients
 Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies,
Procedures and Processes
 Facilitate and coordinate strategic sessions.
 Work directly with clients in a non-advising capacity, such as answering questions,
scheduling appointments and making sure all training concerns are properly taken care
off
 Oversee the smooth running of the daily office activities.

Marketing and Sales Executive


 Once the album is ready, then the marketing team will go out to market and promote
the album
 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
 Identifies business opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of music
projects.
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients and music artists
 Develops, executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

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

Client Service Executive


 Ensures that all contacts with clients (e-mail, social media, SMS or phone) provides the
client with a personalized customer service experience of the highest level
 Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services
 Manages administrative duties assigned by the manager in an effective and timely
manner
 Consistently stays abreast of any new information on the company’s products,
promotional campaigns etc. to ensure accurate and helpful information is supplied to
clients when they make enquiries

Front Desk Officer


 Receives Visitors / clients on behalf of the organization
 Receives parcels / documents for the company
 Handles enquiries via e-mail and phone calls for the organization
 Distribute mails in the organization
 Handles any other duties as assigned my the line manager
SWOT Analysis
PlayMakr® Music Recording Studio engaged the services of a core professional in the area of
music consulting and business structuring to assist the organization in building a standard
recording studio company that can favorably compete with other leading recording studio
brands in Kenya.

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.

Sales & Marketing Strategy


Recording studio business is not a business that you have to retail products which is why we
must do all we can to maximize any opportunity that comes our way to attract people to make
use of our recording studio or hire of services.

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;

First Year-: KShs. 150,000

Second Year-: KShs. 300,000

Third Year-: KShs. 900,000

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;

 Payment by via bank transfer


 Payment via online money transfer
 Payment via check
 Payment via bank draft
 Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with
little or no itches.

Publicity & Advertising Strategy


We have been able to work with brand and publicity specialist to help us map out publicity and
advertising strategies that will help us walk our way into the heart of our target market. We are
set to take the music industry by storm which is why we have made provisions for effective
publicity and advertisement of our recording studio company.

Below are the platforms we intend to leverage on to promote and advertise PlayMakr® Music
Recording Studio;

 Place adverts on both print and electronic media platforms


 Sponsor relevant TV shows and radio programs
 Maximize our official website to promote our business
 Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,
Twitter, LinkedIn, SoundCloud, Google+ and other platforms (music online forums) to
promote our business.
 Offer Pro Bono services as part of our community social responsibility
 Ensure that we position our banners and billboards in strategic positions all around
Nairobi.
 Brand all our official cars / buses and ensure that our trademark label is boldly printed in
all our music album covers and CDs et al
Financial Projections & Costing
The cost of setting up a recording studio business to a larger extent has reduced from what it
used to be; many thanks to the advancement of technology and perhaps the internet. These
days it is now easier to see people set up recording studios in their house. All they need to do is
to register a business and set up a mini recording studio in their apartment!

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.

These are the areas we intend generating our start – up capital;

 Generate part of the start – up capital from personal savings


 Source for soft loans from family members and friends
 Apply for loan from my Bank

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.

Business Growth: Sustainability and Expansion Strategy


It is easier for businesses to survive when they have steady flow of business deals / customers
patronizing their products and services. We are aware of this which is why we have decided to
offer a wide range of music production related services and also to work with both music artists,
corporate organizations and authors.

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.

Check List / Milestones


 Business Name Availability Check: Completed
 Business Incorporation: In progress
 Renting of Office Facility: In progress
 Setting Up Of the Recording Studio: In progress
 Intellectual Property Protection and Trademark: In progress
 Opening of Corporate Bank Account: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: Completed
 Application for business license and permit: In progress
 Purchase of All form of Insurance for the Business: In progress
 Conducting Feasibility Studies: Completed
 Generating part of the start-up capital from the founder: In progress
 Applications for Loan from our Bankers: In progress
 Writing of Business Plan: Completed
 Drafting of Contract Documents: Completed
 Design of The Company’s Logo: Completed
 Graphic Designs and Printing of Packaging Marketing / Promotional Materials:
Completed
 Recruitment of employees: Completed
 Purchase of the needed studio / musical gadgets, furniture, office equipment, electronic
appliances and facility facelift: In progress
 Creating Official Website for the Company: In progress
 Creating Awareness for the business (Business PR): In progress
 Establishing business relationship with key players in the industry: In progress

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