Jordon Harder-Cyre

April 19, 2010

Thundersound Productions

My business is making and selling instrumentals for around $15-$40, and also studio time for every beat that is bought.

My business is a Manufacturing business. The beats are the product that is made and they get sold to the people that want/need them.

An instrumental is a song without lyrics.

Business Profile

Qualifications

•Hip-Hop Project Graduate.

•Have experience in recording/producing.

•Entrepreneurship 30 graduate

In the future, I hope to:

•Buy enhanced equipment,

•Start my own record label

Economics of One Unit

Definition of One Unit One beat Recorded

Selling Price per Unit $40.00

Direct Labor $20

Materials $1

Total COGS Per Unit $21

Other Variable Costs (outgoing shipping, packaging, commissions)

$.80

Total Variable Costs $21.80

Gross Profit Per Unit $18.20

Cost of Materials/Direct Labor

Definition of One Unit:Direct labor

(wage per hour) Time (in hours) to make one unit

Direct labor cost per unit ($)

$20 1 $20

TOTAL $ (C)

Material Description Cost /Quantity Cost per Unit ($)

Cd’s 1 $1

labels .80 $0.80

TOTAL $ 1.80

TOTAL MATERIALS/DIRECT LABOR $21.80

5

Competition

Competitor Price Location Quality

Playa Styles Productions $50 North central GoodMon3yclip productions $15-

$50North Central

Decent Work

Competitive Advantage -I have unique equipment.

-I will take recommendations for a type of beat and than make it specifically for them.

Marketing Mix & Plan

Method Description Target Consumer( age, gender, location)

Cost

Price Will vary depending on quality of the beat.

People who want affordable instrumentals.

$15-$40

Place Music Stores

Product The Instrumentals produced. Rappers/Singers who don’t Have a Producer

Promotion Cards,demos Clubs, rappers, performers

$50

Philanthropy Plan

My business will be giving back the old hip hop sound because I will attempt to make beats that will have an old hip hop feel.

When the business is running I will give workshops to young people.

8

Average Monthly Fixed Costs

Type of Fixed Cost Monthly Cost

Entrepreneurial Stipend [hours x (minimum wage + $1-$5)]

$ 300.00

Cd Labels example: utilities, salaries, advertising, etc $ 10.00

$

$

$

TOTAL Fixed Monthly Costs $ 310.00

9

Monthly Sales ProjectionMonth Units Sold

January 10

February 5

March 5

April 5

May 5

June 10

July 10

August 5

September 5

October 5

November 10

December 10Total =75

0

2

4

6

8

10

12

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Units sold

10

Projected Yearly Income Statement

Selling Price Per Unit $ 40.00

# of Units Sold 75

Total Sales $3000.00

Less Variable Costs

Total COGS $21.00

Other Variable Costs $0.80

Total Variable Costs $21.80

Gross Profit $18.20

Less Fixed Costs

USAIIRD (Yearly) $310.00

Unforeseen $

Total Fixed Costs $310.00

Profit before Taxes $2690

Net Profit $2690.00

Start-up Investment Entrepreneurial hours

needed for start-up Minimum wage + ($1-$5) Total start-up

time investment

60 $ 20.00 $ 1200.00

Description of Supplies Vendor Name Price

CD and Label Staples $ 1.80

Midi Keyboards Long and McQuade $ 80.00

Microphone Long and McQuade $100.00

$

CASH RESERVE covering 3 months of fixed costs $ 500.00

Estimated TOTAL START-UP INVESTMENT $ 1700.00

12

Financing Strategy for Total Start-up Investment

Source Amount

Personal Savings $100.00

Relatives/Friends $50.00

Investor – Regina District Chamber of Commerce

$500.00

Grant $650

13

Return On Sales

Return on Sales (ROS)Yearly Net Profit ÷ Total Sales X 100

2690 / 3000 x 100 = 8989%

For every $1 dollar of sales,

my business earned :$.89

$0.84

$0.86

$0.88

$0.90

$0.92

$0.94

$0.96

$0.98

$1.00

ROS

$1 of sales

Amount of $gained/lossed bysales

14

Return On Investment

Return on Investment (ROI)Yearly Net Profit ÷ Start-up Investment X 100

(2690 / 1700) x 100158%

For every $1 dollar invested,

my business earned :$1.58

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

ROI

Original $1invested inbusiness

Amount of $gained/lossed byoriginal dollarinvested

15

Business & Educational Goals

• BusinessShort term-Start a recording

studio.

Long term-Make a known record label.

• Educational Short term -Finish high school.

Long term -Not really sure.

16

Time Management Plan

Business schedule for a typical week

• Entrepreneurship Hours: 15 hours

• School Hours: 30 hours

• Work Hours: 0 hours

• Free-Time Hours: 10 hours

17

Thundersound ProductionsReal music lives on

Thank you for your consideration of

Thundersound Productions