Marc HoodMarc Hood

Grade 11Grade 11

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Have you ever wanted to express your Have you ever wanted to express your self through music! Are you having a self through music! Are you having a hard time trying to read those HARD hard time trying to read those HARD notes! Well, say “GOODBYE!” to that notes! Well, say “GOODBYE!” to that ancient and difficult way of learning and ancient and difficult way of learning and say HELLO to “Play it By Ear”! You can say HELLO to “Play it By Ear”! You can play virtually anything! Just listen…..then play virtually anything! Just listen…..then play! You will never again have the play! You will never again have the trouble of getting your inner feelings out trouble of getting your inner feelings out the not so common way!the not so common way!

Play By Ear! Is a service business Play By Ear! Is a service business ever satisfying the consumer ever satisfying the consumer need by allowing a long time need by allowing a long time passion for expression to be put passion for expression to be put to work.to work.

Play By Ear is a sole Play By Ear is a sole proprietorship.proprietorship.

Mission StatementMission Statement

Play it By Ear is a leader in Play it By Ear is a leader in providing quality music instruction! providing quality music instruction! Our pledge is to establish lasting Our pledge is to establish lasting relationships with our customers by relationships with our customers by exceeding their expectations and exceeding their expectations and gaining their trust through gaining their trust through exceptional performance! Every exceptional performance! Every Person! Every Time!Person! Every Time!

The Sky is the limit!The Sky is the limit! You can learn any You can learn any

song! Any Genre, song! Any Genre, Any Artist, any Any Artist, any key!key!

Speedy service is Speedy service is always in order.always in order.

Your inner need Your inner need for musical for musical expression is expression is fulfilled! fulfilled!

Qualifications:Veteran of the music business 13 years Instruction from some of the best in ChicagoVocalist/Musician for several artist/groups in Chicago

Lets get unique!Lets get unique!

Do you think you will ever find the time to Do you think you will ever find the time to sit and read those strenuous notes from a sit and read those strenuous notes from a staff? I doubt it! Play By Ear specializes in staff? I doubt it! Play By Ear specializes in a special type of service. If you “Read a special type of service. If you “Read Slow” with us you can “Learn it Kwick” Slow” with us you can “Learn it Kwick” “Read Slow: Learn it Kwick” envelopes “Read Slow: Learn it Kwick” envelopes strategies that enable you to grasp any strategies that enable you to grasp any material FAST!!!! Consumers are always material FAST!!!! Consumers are always on the go! Even if you are on the go, in on the go! Even if you are on the go, in your car or anywhere else, after a few your car or anywhere else, after a few lessons you can listen then PLAY!!!lessons you can listen then PLAY!!!

Market Analysis 1Market Analysis 1

People at church constantly come to People at church constantly come to me saying “ I wish I could play like me saying “ I wish I could play like you!”you!”

I started excepting students to see if I started excepting students to see if they could learn my method.they could learn my method.

I have had 6 students so far exceed I have had 6 students so far exceed their expectations at learning music.their expectations at learning music.

100 people in my congregation and I 100 people in my congregation and I cater to them.cater to them.

Market Analysis 2Market Analysis 2

Our church is on he radio once a Our church is on he radio once a month to a listener audience of month to a listener audience of 5,000 people who know of our 5,000 people who know of our church.church.

Based on this, there could be 300 Based on this, there could be 300 potential clients.potential clients.

Consumer ProfileConsumer Profile

Within 5 miles of my church Within 5 miles of my church People who enjoy my style of People who enjoy my style of

music.music. People who are fast pace and who People who are fast pace and who

can learn music by ear.can learn music by ear. People who want to learn to play People who want to learn to play

music by ear.music by ear.

CompetitionCompetition

Traditional music teachers Traditional music teachers teaching music theory would be teaching music theory would be my competition.my competition.

PricePrice Lessons are $20.00 per half hour. I chose this Lessons are $20.00 per half hour. I chose this

price because my goal was not to break that price because my goal was not to break that customers pocket, but to find affordable music customers pocket, but to find affordable music lessons.lessons.

PlacePlace New St. Paul Church is easy accessible to my New St. Paul Church is easy accessible to my

customers and my equipment is stored therecustomers and my equipment is stored there ProductProduct Satisfaction of expression is the main point of Satisfaction of expression is the main point of

interest. Music is an expression and under my interest. Music is an expression and under my tutelage victory in musical expression will be tutelage victory in musical expression will be achieved!achieved!

PromotionPromotion Radio Bulletins are announced once a month Radio Bulletins are announced once a month

on 1390 AM. Flyers are distributed in the on 1390 AM. Flyers are distributed in the programs at church services.programs at church services.

Marketing PlanMarketing Plan The awareness is me actually The awareness is me actually

playing the music and it appeals to playing the music and it appeals to certain peoples ear and certain peoples ear and announcements every weekannouncements every week

Purchase: The 1Purchase: The 1stst two lessons are 2 two lessons are 2 for the price of one!for the price of one!

Retention: Quality service is the Retention: Quality service is the leader in helping me in building leader in helping me in building lasting relationships with my lasting relationships with my customers.customers.

Economics of 1 UnitEconomics of 1 Unit Definition of 1 Unit- 1 lessonDefinition of 1 Unit- 1 lesson Selling Price per Unit- $20.00Selling Price per Unit- $20.00 Direct Labor Per Unit- $10.00 (pay Direct Labor Per Unit- $10.00 (pay

myself)myself) Overhead- Tithes to the church- Overhead- Tithes to the church-

15%=$3.0015%=$3.00 Total Cost of Sales- $3.00Total Cost of Sales- $3.00 Gross Profit Per Unit- $17.00Gross Profit Per Unit- $17.00

Time Management Plan Time Management Plan

Business Schedule for a Typical Business Schedule for a Typical WeekWeek

School Hours-45School Hours-45 Work Hours-8 hoursWork Hours-8 hours Entrepreneurship Hours- 5 Entrepreneurship Hours- 5 Free Time- 10Free Time- 10

Average Monthly Fixed CostsAverage Monthly Fixed Costs

Entrepreneurial Stipend-17Entrepreneurial Stipend-17 Rent- 3.00 (Tithes)Rent- 3.00 (Tithes) Other- 20.00/monthly-New Other- 20.00/monthly-New

KeyboardKeyboard

Sales AssumptionsSales Assumptions

5,000-Size of Market5,000-Size of Market Ten slots available at $20.00/half hourTen slots available at $20.00/half hour I am a service business and I have I am a service business and I have

unique abilities. At this time, I cannot unique abilities. At this time, I cannot be duplicated.be duplicated.

The best season in summer when The best season in summer when people are possibly off work/school people are possibly off work/school and new schedules can be worked and new schedules can be worked out.out.

Monthly Sales ProjectionsMonthly Sales Projections (Chapter 13)(Chapter 13)

MonthMonth Units Units SoldSold

JanuaryJanuary 22

FebruarFebruaryy

22

MarchMarch 22

AprilApril 22

MayMay 22

JuneJune 44

JulyJuly 66

AugustAugust 66

SeptembSeptemberer

66

OctoberOctober 77

NovembNovemberer

77

DecembDecemberer

88

Total =60

0

1

2

3

4

5

6

7

8

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

Units sold

(Double click on chart to add information)

Monthly Monthly

Break-Even Break-Even

Units Units ((Chapter 20)Chapter 20)

Monthly Fixed Costs/Gross Monthly Fixed Costs/Gross

Profit Per UnitProfit Per Unit

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Return On SalesReturn On Sales (Chapter 14)(Chapter 14)

Return on Sales (ROS)Return on Sales (ROS)

Yearly Net ProfitYearly Net Profit ÷ Total Sales X 100÷ Total Sales X 10065%65%

For every $1 dollar of For every $1 dollar of sales, sales,

my business earnedmy business earned ::$.65$.65

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

ROS

$1 of sales

Amount of $gained/lossed bysales

(Double click on chart to add information)

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Selling Price Per UnitSelling Price Per Unit $ $ 20.0020.00

# of Units Sold# of Units Sold 6060

Total Sales Total Sales (A*B)(A*B) $ $ 12001200

Total COGS Total COGS (COGS per unit * B)(COGS per unit * B) $ $ 3.003.00

Other Variable Costs Other Variable Costs (Other (Other variable costs per unit * variable costs per unit * BB

$ $ (E)(E)

Total Variable Costs Total Variable Costs (D+E)(D+E) $ $ (F)(F)

Gross Profit Gross Profit (C-F)(C-F) $ $ (G)(G)

USAIIRDO USAIIRDO (Yearly)(Yearly) $240.00$240.00

Other Costs/UnforeseenOther Costs/Unforeseen $$

Total Fixed CostsTotal Fixed Costs $ $ (H)(H)

Profit before Taxes Profit before Taxes (G-H)(G-H) $ $ (I)(I)

Less Estimated Taxes @25% Less Estimated Taxes @25% (I * .25)(I * .25) $ $ (J)(J)

Net Profit Net Profit (I-J)(I-J) $$

Projected Yearly Income Projected Yearly Income StatementStatement (Chapter 13)(Chapter 13)

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Start-up InvestmentStart-up Investment

Entrepreneurial Entrepreneurial hours needed for hours needed for

start-up start-up (A)(A)

Wage I pay myself Wage I pay myself (B)(B)

Total start-up Total start-up time investmenttime investment

(A*B)(A*B)

10001000 $ 0$ 0 $ 0$ 0

ItemItem Where I will buy Where I will buy this?this?

Cost of ItemCost of Item

KeyboardKeyboard Guitar CenterGuitar Center $ 2000$ 2000

$ $

$ $

$ $

CASH RESERVE covering 3 months of CASH RESERVE covering 3 months of fixed costsfixed costs

$ 60$ 60

Estimated TOTAL START-UP INVESTMENTEstimated TOTAL START-UP INVESTMENT $ 2060$ 2060

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Financing StrategyFinancing Strategy for Total Start-up Investmentfor Total Start-up Investment (Chapter 14)(Chapter 14)

Total: $2000

Source Amount Debt Equity Gift

Personal Savings [ How will you save?]

$

Mom $2000 X

Investor [Who is it?] $

Grant [From Whom?] $

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Return On Investment Return On Investment ((Chapter 14)Chapter 14)

Return on Investment (ROI) (Chapter 3)

Yearly Net Profit ÷ Start-up Investment X 100

38%

For every $1 dollar invested, my business earned : $.38

Investment Return

Savings 2%

CD 3%

Stock Market -10%

Entrepreneur 38%

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Social Responsibility Social Responsibility Plan Plan (Chapter 10)(Chapter 10)

I believe in youngsters prevailing. I believe in youngsters prevailing. I will offer children who are I will offer children who are passionate about music and who passionate about music and who show the ability, discounted show the ability, discounted lessons. lessons.

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Business & Business & Educational Goals Educational Goals (Chapter (Chapter

3)3)

BusinessBusiness-to provide quality -to provide quality

service encompassing service encompassing valuable business valuable business techniquestechniques

- Always satisfying the - Always satisfying the customers inner need customers inner need for self expression for self expression through music.through music.

• Educational - to finish high school

- graduate college with a Doctoral Degree.

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Thank you for Thank you for your your

consideration ofconsideration ofPlay By Ear!Play By Ear!

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