Musically Infinite, LLC Business Plan

Terrance P. Carson
Principal
1990 Jonesboro Road
McDonough, Georgia 30253
(770) 777-9311 www.musically.infinite@sounds.com November 16, 2012

A. Executive Summary 4
A1. Business Identification: 4
A2. Mission, Goals and Objectives: 5
A3. Keys to Success: 5
B. Company Summary 9
B1. Industry History: 9
B2. Legal Form of Ownership: 11
B3. Location and Facilities: 11
B4: Management Structure: 15
B5. Products and Service: 17
C. Market Analysis 19
C1: Target Market 19
C2: Industry Analysis 20
C3: Competitive Analysis 22
D. Market Strategy 25
D1: 4Ps. 25
D2: Price List- 28
D3: Selling Strategy- 29
D4: Sales Forecast- 30
E. Implementation Strategy 33
E1. Overall Strategy- 33
E2. Implementation- 36
E3. Control Plan- 2
F. Financial Statements and Projections 41
F1. Revenue and Cost Estimate- 41
F2. Forecasted Profit and Loss Statement 42
F3. Forecasted Balance Sheet- 44
G1. Financial Projections 45 G1a- Breakeven Point- 46 G1b-Financial Position: 48 G1c-Capital/Investment Needs: 49
References 509

A. Executive Summary A1. Business Identification Musically Infinite, LLC will operate as a Music Production Company providing a state of the art music production studio for creating, recording and mastering of recorded tracks. This production company will also provide state of the art video studios for videography, which has proven to be an invaluable asset to artist branding in the 21rst century. Musically Infinite will operate a remote location whose sole purpose is to serve as a data warehouse for the storage of the confidential digital media created. Musically Infinite’s primary campus will be conveniently located at 2300 Jackson street in Henry County Georgia, just south of Atlanta’s Hartsfield-Jackson International Airport, making it easily accessible to incoming visitors and local residents. The unique concept of Musically Infinite is to enable artists to go from idea, to creation, to audio production and mastering, to video marketing and finish with distribution, complete with exclusive marketing and shipping, all with one company, in only one building. The purpose of this business plan is to convey the vision for how Musically Infinite will become the preferred vendor of choice for music artist both novice and veteran. This plan will detail the vital steps involved in transforming an idea for a successful business into a thriving profitable pillar to the Metro Atlanta Area economy. A2. Mission, Goals and Objectives The mission of “Musically Infinite” is to provide Affordable, professionally engineered, complete Audio production.” Musically Infinite’s goal is to become the industry standard for Audio production in the digital music era. From the veteran vocal artists, worldwide superstars, to new local artists seeking to make a name for him and herself with a high quality product usually only reserved for the elite and super wealthy. The later part of our company name “Infinite” is defined as “immeasurably great, indefinitely or exceedingly great; Unlimited, unbounded or unlimited; boundless or endless.” This term when joined with our focus “Music,” is what our core passion is, and conveys that our corporate objective is to allow an unlimited love for music to flow from our creative artists to the extent of their talents, gifts or supernatural abilities. The literary genius that is embodied within the walls of skin held together by a hard shelled cranium should be the only physical limitations that an artist is restricted by and Infinitely Music will work tirelessly to create that reality. A3. Keys to Success The primary keys to success for Musically Infinite will be in the following three core components: 1. Affordable high quality audio production created in a one of a kind, state of the art facility, which services all genres’ of music and demographic sectors. 2. High Definition video production complete with chromo-keying ability (Green screening) to the layman, with professional directing, editing and mastering for post-production effects. 3. Focus on sponsorship and funding from small to mid-sized companies whom seek a level of success through these difficult economic times by employing the use of the age old technique of bartering to offset advertising cost.

By providing an affordable high quality audio production facility to multiple genres, Musically Infinite operates true to the name that it bares. Allowing an unlimited level of access to our state of the art equipment, we level the audio production playing field. Our multi language, multi-cultural connections allow our artist to create from their creative viewpoints without having to concern themselves with political correctness or ensuring that their material is positively presented. Our pre-established associations with Univision, Telemundo, Das Erste, Bayerischer Rundfunk, and 23 other foreign television and radio stations places Musically Infinite in the unique position of leverage regarding promotions for artists that use our facility. The facility’s ability to create videos that rival modern day high definition movies enables Musically Infinite to attract the musical artist that rely more on visual persuasion to accompany music productions, unlike other high quality studios, whose focus is either audio or music. Musically Infinite employs a staff of professional videographers, who have vested interest in the company as shareholders which gives them an additional motivation for the success of its patronizing artists. The largest and what is believed to be the most critical keys to the success of Musically Infinite is in the bartering of our services to the sponsors and small to mid-sized companies. This idea was introduced by our founder after having such a difficult time securing traditional funding and acknowledging how willing smaller companies were to trade their works and services for the services that were offered by Musically Infinite. The success of a team is what fuels the passion behind this vision so the inclusion of any and every one willing to aid this cause has been allowed believing that none of us are as good as all of us collectively. The founder’s background in Information Technology is largely engrained in the core beliefs of Musically Infinite as is evident in the open concept for a successful operation. The following components are what Musically Infinite believes are the requirements for its success: 1. Believe in yourself and the product that you produce. There is a purpose for everyone on this planet and it is our responsibility to ensure that our purpose is fulfilled prior to our departure. 2. Open source is the key to success. This is the unequivocal belief that when we all contribute with a common objective and motivation, there will be a success achieved unmatched and unlimited. 3. Reward for successes and reward for attempts at success. Musically Infinite does not believe in the word “Failure” as it denotes that the effort to succeed has been abandoned. 4. Utilize the technological advancements of this era. There has never been a time in our history that audio and video creation and delivery has been as fast and at such a quality as it is now. 5. Social media is larger than any newspaper, television, and magazine or radio station and should be harnessed to take full advantage of its far reaching accesses. 6. Data storage and uptime are imperative for the success of this endeavor so the Co-location (CoLo) and its engineers are vital and highly regarded and supported on a 24 hour, 365 day support. 7. There is a guaranteed 23.5 hour uptime due to the level of fault tolerant, redundancy enabled by the 25 servers, 10 SANS, using multiple DMZs.

B. Company Summary B1. Industry History The history of music is often debated as some argue that it originated with animals and their various sounds, tones and exotic pitches, while others contend that it is derived from early human existence and the use of percussions, wind and string instruments, it is universally agreed that our world would not be the same without the sounds that are used to calm the savage beasts and incite crowds to action. One would have to study subjects like Bio musicology, Evolutionary Musicology, Neuromusicology, and Comparative Musicology for the debated origins of music. These subjects are what the artists that we assist have studied to perfect their craft prior to coming to Musically Infinite Studios to record their creative expressions to present to society and the world at large. Music is rumored and hypothesized to have been a result of some form of “sexual selection” which attempts to explain why there such various styles of music and why certain behavior matches what we would expect for a courtship display.
It is written that this is almost identical to the age and sex profiles discovered by Daly and Wilson (2001), for homicides, which they took as evidence for sexual selection shaping propensities for violent sexual competitiveness. According to some, it is suggested that music evolved and continues to function as a courtship display, mostly broadcast by young males in efforts to attract the attention of young females. This theory would explain why so many major recording labels target the younger musical performers over the aging more elder musical entertainers as, this line of thinking suggests that the youth are creatively more in tuned with the pulse of the upwardly mobile musical listeners.
Regardless of its origins music production is widely accepted by all cultures of people and serves as a common ground between the old and the young. Though their choice of music, is vastly different, just as it is across racial, ethnic and social lines, the appreciation of song either acapella or accompanied by instrument of any kind is not only human, but a rhythmic, kinship shared by all living creatures. Musically Infinite is the brain child of a former Disc Jockey and Information Technology Professional whom believes that with the technological advancement of digital medium, if fused together driven by a co-operative effort of company whose appreciation of the arts shown through the rewarding of its employees, that no other company could compete in a market largely dominated by profit driven executives that lack passion for anything other than a positive bottom line. Professional Audio production began in the early 20th century and was known largely as “Mood Music” which was mostly scores of music produced in closed rooms as to completely capture the essence of the various tones and pitches of music which originated in Europe.

B2. Legal Form of Ownership Musically Infinite will operate as a limited liability company, which will allow its Principal, Terrance Carson the tax benefit of flow through taxation, meaning that all profits, losses and expenses flow through the company to the individual members, as well as encourage investing into this endeavor. This form of ownership allows for flexible profit distribution, no requirement for formal meeting minutes or resolutions. Georgia’s 2012 Business Tax climate ranked 34th on the Business Tax climate Index, which compares five areas of taxation that impact business.

B3. Location and Facilities 1990 Jonesboro Road, McDonough, Georgia is located in Henry County, Georgia, United States has a population of approximately 30, 000 from an estimate in 2008. The city currently has an AM radio station which plays classic country and SCB-TV cable channel 15 Television station. This location was chosen because of the size of the building already erect and vacant due to the recent closing of BJ’s Wholesale Club. This location offers 115, 269 square feet, of which will be subdivided as follows:

* 10 Audio recording studios * 3 videos recording studios * 5 consumer lounges * 8 Audio Mastering studios * 3 Video Editing studios * 4 Internet rooms each complete with 4 personal computers * 2 Mac and 2 Windows based systems

There is a dedicated computer room which houses the 20 servers which store and backup all of the audio and video media created onsite with a dedicated redundant fiber-optic connection to our out-sourced Co-location, which is our off site back up of all data from our primary site. There is a main office suite which is where the local staff conducts all of the operations of the business and should be sufficient for the projected first five years of operation.

There are four exits to the building and there has been special fire extinguishers specifically designed for the retardation of electrically induced fires and computer related hardware, which act to reduce the heat in the building through patented electronic cooling system. The main office has a conference room large enough to seat 20 people and six staff cubicles. Each audio studio is equip with a work area large enough for up to 4 audio engineers outside of the recording booth which is large enough for group recording of up to 10 adult size males.

Two of the video studios are equip with work areas large enough for 4 camera operators, 2 sound engineers, 3 key grips, 2 lighting specialist, 2 directors, and 1 producer. The largest of the video studios is equip with a work area large enough for a studio audience of 50 people, 5 camera operators, 3 sound engineers, 4 key grips, 6 lighting specialist, 2 directors and 1 producer. There are 4 restrooms throughout the building one male and female facility on each wall of the building, each being capable of 10 males and 10 females simultaneous use. There are two baby changing stations on the restrooms on the East and West wing restrooms. There are five consumer lounges which are large enough for 4 adults equip with a full bathroom and 2 bunk beds, microwave oven, mini-refrigerators and sinks.

There are two full service production studios for all commercial production assistance which are large enough for viewing parties of 20 adults. There are three video editing studios large enough for 4 adult males. The parking lot holds up to 200 cars with a monitored security system and a security company whom provides 5 guards for 24 hour coverage. It is lighted by 25 high output 400 watt lights designed to effectively illuminate the all areas of its parking area. This building is located ¼ mile from interstate 75 which leads directly into the heart of downtown Atlanta.

Musically Infinite Floor Plan Video Studio | Video Studio | Video Studio | | | | | | | | | | | | | Production | | | | | | | | | | | Audio Mastering | | | Production | | | | | | | | Audio Mastering | | | | | Lounge | Internet | | | Audio Mastering | | | | | | Internet | | | Audio Mastering | Audio | | Audio | | Lounge | Internet | | | Audio Mastering | | | | | | Internet | | | Audio Mastering | Audio | | Audio | | Lounge | Computer Room | | | Audio Mastering | | | | | | | | | Audio Mastering | Audio | | Audio | | Lounge | | | | | | | | | | | | | | | | | Video Editing | Audio | | Audio | | | | | | | | | | | | | Lounge | Main Office | | | Video Editing | Audio | | Audio | | | | | | | | | | | | | | | Video Editing | | | | | | | | | | | | | | | | | | | | | | | | | Main Entrance | | | 1990 Jonesboro Road | | | | | | | | | | | McDonough, GA 30253 | | | | | | | | | | | | | | | | | | | | | | | | | Audio Studios - 35,000 sq. ft. | | | | | | | | | | | | Video Studio - 65,000 sq. ft. | | | | | | | | | | | | Mastering/Editing - 5,000 sq. ft. | | | | | | | | | | | Sleeping/Lounging Quarters - 8,000 sq. ft. | | | | | | | | | | Office Space - 2,269 sq. ft. | | | | | | | | | | | |

B4: Management Structure
Musically Infinite, LLC will be operated and owned by the Carson family.

Principal and General Manager
Terrance P. Carson will serve as the corporate Principal, being responsible for general management and all daily operations. Due to Mr. Carson’s 16year background in Information Technology and 18 in Music production, he is qualified through knowledge and experience to oversee the vital components of this operation. He has served as the primary source of change for many failing businesses that have relied heavily on music production to increase total revenue and market share. Mr. Carson has pioneered a number of changes that have increase attendance by over 400% which also increased market share by more than 10%. Mr. Carson’s services as a super producer enabled a financially struggling business to not only avoid bankruptcy, but created a level of income superseding its closest competitor by more than 25%. Mr. Carson’s knowledge of Information Technology has allowed him to fully network the operation with redundancy and a backup disaster recovery plan that is similar to the fault tolerant systems of the United States Space Program.

Audio Production Managers
Audio Production will be managed by Tevin D. Carson, Domestic and Solomon Porter, International. Tevin has served as the Director for Sony, BMG and ASCAP over his 7 year career since graduating the top of his class at MIT class of 2005. Under the direction of Tevin Carson, companies have increased revenue by over 20%, which has proven especially creative in such economic hardships as have been present over the last 12 years. Solomon Porter has served with Def Jam Records International, whom brings international contacts and experience of over 5 years. Mr. Porter has increased international market share in the Japanese market by 13% and 18 in the European regions.

Video Production Managers
Video Production will be managed by Tyler J. Carson, Domestic and Delon Pannell, International. Video production is such a vital part of overall success that each production has to be approved individually and collectively by both video production managers to ensure compliance to the company’s overall 100% consumer satisfaction. These teams of Video producers have worked together for over 6 years with Fox, TBN, BET, ABC, NBC and Turner and have won various awards for their collaborative works. This team is world renown as “CarPan Productions” and is regarded as the Ben and Jerry’s of Video production. It was through their strong desire to join the family business that they have agreed to join our team for the introduction of this business model.

Internet and Social Networking Collaboration
The most crucial component of the success of Musically Infinite will be managed by Bahia Carson and Akira Pannell. Their knowledge and experience in the area of social media communications is second to none. The mother daughter team has over 20 years of digital communications expertise and bring 3 “Talk to Us” awards for computer based socializing and 5 “Toney” awards for Marketing Excellence and 2 “Top of the Heap” awards for promoting more than 500 artists to top 10 sales for their perspective genres.

B5. Products and Service Musically Infinite will provide Audio and Video production for musical artists and journalistic endeavors. Our primary target market is to assist in anyone seeking audio recording, sampling, and music creation and mastering, video production, creation, editing and commercial visual effects. Our location is in the south east region of the United States which may suggest that we are catering to local artist, however our target market is geared to both domestic and international audio and video production equally. Because of the size of our facility and number of award winning professionals that we have on staff, we are positioned to accommodate a large number of artists and with our fees being greater than 10% less than those of our closest competitors for the equivalent services and equipment, we will corner our market within our first year of existence. Through our newly created business structure which incorporates the age old technique of bartering to lessen the cost of commitment to those financially unable to embark on this remarkable opportunity or simply to serve as an added incentive as an alternative to giving up money to pursue a dream. By being able to barter, it is more or less agreed that what is being offered is of some value to all involved or it would not be worth the investment of time and effort. Our business endeavor encourages that everyone involved has a vested interest which coupled with a passion for music will yield a product far more valuable than any sum of money could create. Our objective is to encourage the creation of a product that will yield a residual of at least 6 months or more, which is a substantial return on investment. All created products will return a 1% residual to Musically Infinite which is why we lower our upfront costs and look for success to see our involvement’s return on investment.

C. Market Analysis
Who are the customers and clients of Musically Infinite? How will the industry know who, what and where we are? Can our efforts be duplicated by a competitor?

C1: Target Market Musically Infinite’s target market is new musical artist without a contractual agreement or representation. There are no genre limitations or any other musical limitations that would exclude a particular style, type or demographic. Our clients and customers are not limited to a particular income level or social status. Due to the nature of our agreement structure, we are also seeking clients that are looking to broaden their level of social media distribution if they have already created and mastered material. This level of limited services agreement allows Musically Infinite to establish a distribution only agreement which would open our services up to anyone with access to the internet worldwide. Our services are open to established musical artist whom are also seeking also to either enhance their prerecorded mastered audio tracks, modify video post-productions or simply to add additional distribution channels to pre-existing channels. Musically Infinite has specifically targeted new upstart businesses with little monetary investment capital, but with a service or product that would serve useful to Musically Infinite such as new restaurants, clothing retailers, software manufactures or any business that can serve as a bartering solution for trade.
C2: Industry Analysis
The music industry worldwide generated close to 50 Billion per year in the initial days of Compact Disc. Prior to Compact Disc, vinyl records and cassette tapes were the primary medium used to record and distribute musical artistic creations. In this generation of digital explosion, those physical mediums are now out dated and actually serve to hinder profitability the longer that they are held as the primary source for capturing and distributing music. The US Music Market is roughly 39% of the Global Market with Digital Music sales in the United States up more than one hundred percent from 2003 to 2011 according to an executive for IFPI. US Digital Revenues grew from $1.9 billion in 2006, to $5.7 billion in 2011, which is a financial growth of $3.8 billion in only 5 years, averaging a 7% increase per year. It is expected that this growth trend will continue as all US Music Industry Revenue totaled $26.5 billion in 2011, which was a $500 million increase from the previous year. Due to this ever increasing uptrend, Musically Infinite seeks to capitalize on an industry unlike many that are remaining profitable during such trying economic times.
There is also the ever present debate of copyright infringement which has been reported repeatedly to cause financial hardships to the music industry, but forbes.com has published an article which contradicts these claims, which is what Musically Infinite is holding as its motivating force. Corporate labels controlled and defined music and the distribution of it due to their enormous ability to financially reward those artists that sought to have their creativeness presented to the world. Through the influence of a large financial gain, artists were encouraged to create music that served purposes that benefited these corporate labels, either financial, social or psycho logical. This type of influential creativeness was the norm until recently and the digital distribution movement began allowing artist to distribute their own musical creations without the financial persuasions of large budget corporations. In recent times, social media outlets, Facebook, MySpace, Twitter, LinkedIn, and YouTube have allowed artists that lacked financial means to introduce themselves to a worldwide audience and allow the popularity of their unique sound and creativeness to define their individual growth or exposure. Prior to these computerized outlets these artists were usually restricted to “Underground” networks which were basically word of mouth communications.
Only when the “Underground” network accepted an artist would the local radio stations attempt to validate the credibility of new artists, which would then strongly suggest to the large corporations that this “New” artist was worth investing time and money as they had already created such a large following, would almost guarantee huge returns on initial investments. “Soulja Boy” is an excellent example of an “Underground” artist whom due to his popularity was considered a cash cow for whatever label signed him to a contract.
Having said so much regarding the employment and monetary motivations of the recording industry, Musically Infinite serves to couple the old philosophies of music creation to the new philosophy of digital distribution.
C3: Competitive Analysis The time has never been more positive to launch this entrepreneurial endeavor especially when others are continuing to hold on to the old pricing strategies that look to profit from a physical medium whose profits are minimized with the each additional mile traveled to deliver to its consumers. There are very few companies with the business solutions such as Musically Infinite and even fewer that are profitable. What makes Musically Infinite so unique is that it does what no other company does, it combines both the old methods with the new channels, all while educating its artists to be independent, which encourages involvement versus aiding in alienation. When artist see or begin to understand that monetary gain in the music industry is earned and lost over time versus short term or “The Quick Buck”. When artists are shown the strategy for long term residual income through ownership of royalties’, they sacrifice time and money to be a part of such an innovative method for financial independence and freedom.
To summarize this competitive environment, most competitors are either in creation of music through equipment use, rental or sales, the distribution of created music through their commercial channels either digital, or through shipping or mailers. The final competition is from music education, which is billed hourly from independents, quarterly from established professionals or yearly from educational institutions. Musically Infinite offers equipment for use, professionals for teaching of the industry, and distribution of created musical creations in addition to being able to earn residual income from whatever is created through ownership of masters via song writing royalties.

Porter’s Five Forces Model Porter’s Five Forces model is used to completely assess Musically Infinite’s competition: 1. Threat from Suppliers: There are no other music production companies in the Southeast Region of the United States that currently supply the level professional education, state of the art equipment and distribution channels that are available through Musically Infinite. 2. Threat from substitute: Due to the number of positives offered by Musically Infinite the ability to duplicate its offerings would take time and a level of modeling which would likely not yield the same result as the professionals employed by Musically Infinite are bound by confidentially and non-compete clauses which does not allow them to compete against our interest in the same geographic region for a period not less than 2 calendar years or 730 calendar days from date of implementation. 3. Threat from Buyers: There are currently no threats from Buyers as our manufactures that are using our specially created equipment made with our patented component parts and are also under non-compete clauses. 4. Threat from New Entrants: Musically Infinite has patents on the equipment and software being used to assist in our new artist development which has served as an invaluable tool in voice recognition and modulation when grouped with our patented Micro filtered microphones. 5. Threat of Rivalry: Musically Infinite has rival in individual markets and categories, however none collectively as this one stop shop is new to the world and should remain a serious force for at least the first 5 years, which is when the patent on many of the software expires.

D. Market Strategy

D1: Product, Placement, Promotion and Pricing (4Ps)
Product
Musically Infinite offers products that are especially created for Musically Infinite and are only offered in the Musically Infinite studio. The equipment: * Auto-Tune Vocalizer (MI2000TPC) Especially created patented system which uses a special voice recognition software so that only the artist whom created it will be able to edit, modify or delete the vocals created. * Master-Mix Mastering Board (MI20001TDC) especially created patented hardware 400 track mixer which enables the cross track technology. * Video to Go (MIVTG20411TJC) especially created patented video camera which allows individual recording of items which can be started by winking of your eyes. The product reads the retina to ensure privacy and security recognition.
These are only a few of the long list of patented equipment especially designed and manufactured to ensure that Musically Infinite remains a competitive force for years to come.

Placement
Musically Infinite will offer its products and services to its clients and customers from one centralized location. Due to the complexity and level of security needed to ensure non-disclosure of creative works, this location will be available to those that have gone through a background investigation and thoroughly screened to ensure authentication into the guarded facility. There will be 3 phases of authentication once upon the campus and more computerized authentication for the use of the equipment within the campus doors.
Once the musical creations have been mastered and video creations edited and finalized for post-production distribution, it will be encrypted online and on all physical media to ensure that it isn’t illegally duplicated. All compact disc and DVD creations will be distributed to local retailers throughout the world whom all will have been properly screened and held to non-compete clauses and confidentiality agreements and secret clearances.
This level of control allows proper documentation and recording of offerings that perform well with differing demographics and geographic locations with respect to centralized versus decentralized distributions. With a patented digital distribution system allows local retailers to maintain lower costs as they will be afforded opportunities to market the creations to their markets by whatever is most profitable for their clients.

Promotion The promotion of Musically Infinite will be unlimited as with all entertainment based companies. There will be a corporate initiative through local billboards, television, and radio and highly promoted through internet based advertisement. Musically Infinite is in communication with smartphone, tablet and computer manufactures to enable yet another form of distribution as new technologies are created and re-engineered. There is a special logo created that is serving as a visual sign for local retailers to display on their physical building to ensure that visitors, clients, customers and guests are aware of this award winning product and software distributions availability.
Pricing
Pricing for Musically Infinite is what separates it from other companies in the music industry. Our long term approach to profitability and the sharing of the accumulated wealth will ensure long term existence by enabling and encouraging brand loyalty through collective growth. There are no boundaries to growth and inclusion which is what our pricing strategy has suggested. There is a 1% residual returned to Musically Infinite for all works produced, 5% for all works distributed and a flat rate for location utilization. Education will be offered through a Federal Education grant which will be in a pricing model established by the FASFA and the Department of Education. The licensing of proprietary software will enable a sustainable level of income to ensure the solvency of the company which enables the lowest of all residual and royalty based fees in the industry.
D2: Price List
Building Access (Audio and Video)
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Unlimited (24 hours x 7 Days x 365) yearly $5,000.00
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(12 – Calendar Months) Monthly $7,000.00
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(4 – Calendar Weeks) Weekly $250.00
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(7 – Calendar Days) Daily $50.00
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Audio Only
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Unlimited (24 hours x 7 Days x 365) yearly $2,500.00
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(12 – Calendar Months) Monthly $350.00
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(4 – Calendar Weeks) Weekly $125.00
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(7 – Calendar Days) Daily $25.00
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Video Only
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Unlimited (24 hours x 7 Days x 365) yearly $2,500.00
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(12 – Calendar Months) Monthly $350.00
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(4 – Calendar Weeks) Weekly $125.00
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(7 – Calendar Days) Daily $25.00
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Distribution Only
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Internet Based $3,000.00
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Physical Media $2,000.00
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Internet and Physical $4,000.00

D3: Selling Strategy The selling strategy for Musically Infinite will begin with trade show introductions starting with “Music China” on November 1oth through 14th 2012, held every year. “Momex” held by World Music Group held only once a year, and because of this infrequency attracts the music industries finest and brightest of all nations. The trade show introduction will only serve as a catalyst to our internet launching which will provide a large number of Celebrity endorsements which have partnered with Musically Infinite for the bartering initiative, which will serve their personal and professional interest due to many of whom are looking to create, maintain or sustain a professional music career. The selling strategy of Musically Infinite is much like the selling strategy of Health clubs in the United States. The profits are mostly in access to the facility, but unlike those strategies we encourage the use of our facilities due to the vested interest we have in the creation of and distribution of what is created in the facility. The launching of the company website is mostly promoted through the very sites that are used to promote its artists, again due to the bartering agreements that are entered into for mutual benefit to both parties involved. The marketing of patented software is based on a licensing price model which allows for residual income that brand stamps all products created with its software. The first goal of the selling strategy is to secure 5 bartering agreements with the major internet sites: Facebook, Twitter, MySpace, LinkedIn and Model Mayhem. These sites are the targeted as they currently are the most visited sites on the internet. A targeted milestone is to incorporate search engines like Google, Bing, Ask, Hotbot and Lycos, which will serve as a platform to ensure that when internet users are searching for Music Production, Musically Infinite will appear at or as close to the top of their searches.

D4: Sales Forecast

The Sales Forecasts listed above are based upon the projected growth for Musically Infinite within the current Global economy. As the United States continues to recover from years of economic downturn, Musically Infinite has forecasted a growth rate of 2% after the first month, 1% for the following 4 months and maintain it 10% growth rate for 5 months due to the current music industry’s growth and stagnation. Due to the level of artist investment for the later 3 months of the calendar year, Musically Infinite has projected a 2% increase for the month of October from September and a sustained 3% growth rate to 15% total for the last two months of the calendar year.

E. Implementation Strategy
E1. Overall Strategy Formation Process The strategy for a successful launch of Musically Infinite will be very exciting as there are a number of software and equipment patents that insulate Musically Infinite from other entrants from completely duplicating our brand of business. With copyright protection for created material and tracks protects its intellectual properties from piracy and with encryption measures in place to aid in protection, implementation will be straight forward and fairly easy to implement and sustain. The Articles of Organization and fees are made to the state of Georgia for formation in October 2012 to ensure that the agreed upon rental and lease rates are in place. The funding for the initial startup has been secured through SunTrust Bank Atlanta Georgia to be guaranteed by the FDIC and Fidelity Mutual whom have also partnered with Musically Infinite for the initial 2 years of operation.

Marketing Process Once the company logo has been finalized which is the single most object that will be used to create and maintain the unique brand of music production that Musically Infinite brings to the audio and video world of entertainment. It is imperative that the logo is copyrighted so that when this major effort is undertaken, this logo isn’t duplicated by another company seeking to capitalize on the impending success of the brand launch. T-shirts, Frisbees, Mouse pads, Car flags, Ink-pens, Cozies, will all be a part of the marketing initiative to create brand awareness. Television commercials, YouTube contests and Radio advertisements will also be a part of the introduction of Musically Infinite.

Peak Production Load Testing Process Extensive testing and stress testing will begin to ensure that when the studio is in its peak hours of operations that the servers, routers, computers, power stripes and uninterruptable power supplies are fully functioning and capable of handling the amount of continuous load being added to them for extended periods of time. Heat will be ported directly into the building and air conditioning shut off to simulate A/C failure to properly stress test all of Musically Infinite’s patented hardware during extreme operating conditions. Controlled fires will be ignited in all areas of the studio to ensure that all fire suppression is fully operational and can be effectively contained within the areas of incident. Computer hackers will be employed and solicited to crack into the local area network to ensure that Musically Infinite’s LAN is impenetrable from outside and inside of it segmented firewalls.

Sales Initiatives Implemented November 10th – 14th at the “Music China” trade show, Musically Infinite will implement its services to the music community. Based on the successes of the television advertisements, web presences, radio runs and international launches the sales of services provided by Musically Infinite will be in full swing. To spear head foot traffic into the state of the art facility, there will be 30 minute sessions added to each 1 hour session purchased, 2 hour sessions for 1 day purchases and 1 additional day added to each monthly session purchase.

E2. Implementation The implementation strategy shown below lists the completion dates and responsible person or team. Musically Infinite will closely monitor the projects listed to ensure that all projects are completed at the appointed dates and times to remain on schedule.
Formation Process Completed | Project 1 | Completion Date | Completed By | Yes | Articles of Org | 10/1/12 | Terrance P Carson | Yes | Hiring of Staff | 10/1/12 | Management Team | Yes | Facility Completion | 10/1/12 | Terrance P Carson |

Marketing Process Completed | Project 2 | Completion Date | Completed By | Yes | Company Web Presence | 10/5/12 | Web Design Team | Yes | Television, Radio | 10/5/12 | Management Team | Yes | T-Shirts, Frisbees, etc… | 10/5/12 | Terrance P Carson |

Peak Production Testing Completed | Project 3 | Completion Date | Completed By | Yes | Equipment Stress Testing | 10/10/12 | Terrance P Carson | Yes | Fire Testing | 10/12/12 | Management Team | Yes | Hack Testing | 10/13/12 | Terrance P Carson |

Sales Initiatives Completed | Project 4 | Completion Date | Completed By | Yes | Web Brand Launch | 11/1/12 | Terrance P Carson | Yes | Trade Show | 11/10/12 | Management Team |
E3. Control Plan The Control Plan is the formal document created to detail the steps that are essential to ensuring that Musically Infinite operates as expected. There are dates listed along with the person or team responsible for the task. The tasks listed will be addressed daily to ensure that all assigned tasks are completed in a timely fashion and do not work against the efforts of the overall operation, which would serve to delay and possibly derail efforts for a successful launching and thwart efforts to ensure smooth operations. It is Musically Infinite’s overall objective to ensure that all staff and company employees are fully aware the tasks and objectives for each day as everyone is vital for the success of this service oriented endeavor. It is also imperative that the companies that are bound under the bartering agreement uphold their agreed upon contribution to the success of the operation as whatever has been offered must be delivered to ensure that all deliverables are met within the timeframes agreed upon. Due to the strict compliance needed of the bartering agreements, all companies that are unable to deliver the agreed upon goods or services must ensure that those discrepancies are made known to all parties involved to initiate the Musically Infinite alternative solutions plan which is a part of the backup recovery solutions. Formation Process Completed | Task | Date Due | Comments | Control | Yes | Plan | 10/1/12 | Completed: Capstone | Business Plan | Yes | Articles of Org | 10/1/12 | No Disapprovals | Approved | Yes | Copyright | 10/1/12 | Revisions approved | Approved | Yes | Facility Lease | 10/1/12 | Re-neg. | Building Acq. | No | Staff Hiring | 10/1/12 | In Process | Mgmt Team | No | Barter Agrmnts | 10/1/12 | In Process | Mgmt Team |
Marketing Process Completed | Task | Date Due | Comments | Control | Yes | Website Presentation | 10/5/12 | www.MusicallyInf.com | .com Team | Yes | Brand Logo | 10/5/12 | Re-designed | Approved | Yes | T.V. Radio | 10/5/12 | Sam Jackson, Denzel W. | Advertisement | Yes | T-Shirts, Frisbees, Mouse Pad | 10/5/12 | Re-neg. | Advertisement | No | Trade Show Booking | 10/5/12 | In Process | Mgmt Team | No | Local Schools Visits | 10/5/12 | In Process | Mgmt Team |

Peak Production Testing Completed | Task | Date Due | Comments | Control | Yes | Hardware Tests | 10/10/12 | Patents revised | Design Team | No | Software Tests | 10/10/12 | Revisions Needed | Dvlpmnt Team | Yes | Audio Studios Fire | 10/10/12 | 150 Degrees Ferenh. | Fire Dept. | Yes | Video Studios Fire | 10/10/12 | 190 Degrees Ferenh. | Fire Dept. | No | Staff Hiring | 10/10/12 | In Process | Mgmt Team | No | Hack Tests | 10/10/12 | In Process | Mgmt Team |

Sales Initiative Completed | Task | Date Due | Comments | Control | No | Travel to Trade Show | 11/1/12 | Completed: Capstone | Business Plan | No | Trade Show Booth Setup | 11/1/12 | China Show Li Wing | Approved | No | Web Brand Launch | 11/1/12 | “Brand” New You | Approved | No | Book Hotel in China | 11/1/12 | Hotel Mi Ho | Building Acq. | No | Hire Chinese Interpreter | 11/5/12 | Interpreters Chi | Mgmt Team | No | Launch Company | 11/1/12 | All Involved | Mgmt Team |

Continuous Efficiency Checks Completed | Task | Date Due | Comments | Control | No | Quarterly Equipment. Check | 12/1/12 | Quick Check | Studio Control | No | Quarterly Equipment. Check | 3/1/13 | Thorough Check | Studio Control | No | Quarterly Equipment. Check | 6/1/13 | Quick Check | Studio Control | No | Quarterly Equipment. Check | 12/1/13 | Thorough Check | Studio Control | No | Fire System Check | 3/1/13 | Code Validations | Local Fire Dept. | No | Fire System | 6/1/13 | Code Validations | Local Fire Dept. | No | Building Structure/Design | 1/1/13 | Annual Inspection | Local Bldg. Code Enforcement | No | Book Hotel in China | 11/1/13 | Hotel Mi Ho | Music Trade Team | No | Market Evaluation | 10/1/13 | Annual Evaluation | Mgmt Team | No | Financial Update | 1/1/13 | Overall P & L Status | Mgmt Team | No | Financial Update | 6/1/13 | Semi-Annual Status | Mgmt Team | No | Financial Update | 12/15/13 | Year End Update | Mgmt Team | No | Hire Chinese Interpreter | 11/5/13 | Interpreters Chi | Mgmt Team | No | Software updates | 6/1/13 | All Involved | Mgmt Team |

Addendums to Control Plans

October 1, 2012 – Lease signing and initial funding for patented equipment acquisition. Website completion scheduled for 10/15/12 and sponsorship for mutual collaborations are scheduled for 10/20/12, initially postponed due to financial modifications to bartering modeling.
October 15, 2012 – First month open to artists for business and recording. All modifications for leased location have been completed and initial month of advertising has been completed.
October 20, 2012 – Deadline for all companies to have completed contractual bartering agreements that are looking to offer their goods or services with the introduction of the company via worldwide web and for local advertising.
October 31, 2012 – Ensure that all startup initiatives are up and running and that all challenges have been addressed.

F. Financial Statements and Projections

F1. Revenue and Cost Estimate

The following projections are to summarize what Musically Infinite expects for the first year of business. The spreadsheet attached also illustrates the financial projections that Musically Infinite forecasts for the first year of operation. Musically Infinite will own all equipment located in its studios and will depreciate its equipment on yearly bases. The financial outlook regarding the distribution of audio and video production is based off of a 1% sales residual which is assessed to all productions created and distributed by Musically Infinite.
Labor costs estimates are $400,000.00 annually, due to the level of expertise required to ensure proper audio and visual production. Musically Infinite is expecting to have revenues of $525, 987.26 for the first year of operation. Through the bartering agreements costs are expected to be minimized to offset initial costs and unexpected expenses for the first three years of operation. Total cash expenditures in the first year are expected to be $94, 800.00 which are listed on the attached spreadsheet and are also expected to be offset by renegotiations of existing bartering agreements which will serve to further benefit corporate partners as the company grows in recognition as a clear choice for entertainment giants in the world of Audio and Video production, reproduction, mastering, editing and distribution.

F2. Forecasted Profit and Loss Statement

Musically Infinite’s first year projected profit and loss statement illustrates the following financial disclosures. The spreadsheet details estimated sales for projected yearly, monthly, daily and hourly audio and video production and distributions. The spreadsheet has projections based on monthly sales as the company’s scheduled launch is in the eleventh calendar month of November, but will serve as the first operational month of business as the company will operate on fiscal months to ensure proper tax accountability.

The attached spreadsheet shows projections based on the following:

1. Contractual sale of per year’s usage for both Audio and Video studio time is billed at the rate of $5, 000.00. 2. Contractual sale of per month’s usage of both Audio and Video studio time is billed at the rate of $7, 000.00. 3. Contractual sale of per week’s usage of both Audio and Video studio time is billed at the rate of $250.00. 4. Contractual sale of a per day usage of both Audio and Video studio time is billed at the rate of $50.00. 5. Contractual sale of per year’s usage for only Audio or Video studio time is billed at the rate of $2, 500.00. 6. Contractual sale of per month’s usage for only Audio or Video studio time is billed at the rate of $350.00. 7. Contractual sale of per week’s usage for only Audio or Video studio time is billed at the rate of $125.00. 8. Contractual sale of per day’s usage for only Audio or Video studio time is billed at the rate of $25.00. 9. The distribution of creations by Musically Infinite is estimated as listed on the projections spreadsheet and is calculated per the average amount of usage growth per local and international artist. 10. The distribution price of residual sales is based upon a 1% sales charge for the first six months and increased to 3% for the remaining 6 months of the fiscal operating year.

F3. Forecasted Balance Sheet

Musically Infinite’s first year’s balance sheet is attached which will illustrate the company’s cash on hand, assets, and addresses the depreciation purchased equipment based upon the initial acquisition of loaned capital of $1.5 Million dollars (USD). The current ratio for October 24, 2012 shows that Musically Infinite has a current ratio of 1.60 and the acid ratio of also 1.60 being that Musically Infinite has no current inventory, which also shows that the company is projected to operate very strong in its industry. The following is based on the Forecasted Balance Sheet which takes the following assumptions in to account:

1. $1,500,000.00 is borrowed from Bank of America to be repaid at 3% APR. 2. Beginning inventory of $648,875.00 for all equipment. 3. Payroll remaining constant as projected. 4. Depreciation is accounted for purchased equipment.

5. Georgia Corporate Income Tax rate is 15%.

G. Financial Report

G1. Financial Projections

The financial projections shown in this report for Musically Infinite indicate that the company is financially in a positive position. The attached spreadsheet illustrates that all costs have been properly accounted for which show that the operating expenses total $462,396.00. The attached spreadsheet also illustrates that the assumptions and ratios that were used are owned and operated by Musically Infinite which serves to minimize costs due to the more that costs are retained the more cost effective and efficient Musically Infinite is. Monthly rent has been negotiated for a reduced rate for the first six months and increased to normal rate for the later six months of the fiscal year.
Musically Infinite has projected sales totaling $525, 984.26. Musically Infinite employs a total of seven full time employees whose salaries and payroll expenses total $399,996.00. The salaries for these employees are the industry minimum in efforts to minimize operating expenses until the company has established a solid customer base which will enable strong financial solvency. The industry’s primary means of making a profit is largely similar to the mentality of the health club industry, and that premise is that clients or customers will pay and not use the facilities. The pricing scale for the contractual yearly fees actually works to a disadvantage for the proprietor and more to the advantage of the clients or customers. While calculating the Break-Even points for Musically Infinite it was revealed that this industry is primarily operating at a loss under yearly contracts when its customers actually use the facilities that they have purchased.
The breakdown of the pricing structure has shown that since Musically Infinite operates a service for profit industry meaning that it is to the advantage to encourage daily purchases which will allow Musically Infinite to break even after only 112 hours which equates to $1, 4563.00. There are a number of items that must be considered when focusing on the financial objectives for Musically Infinite. There are yearly, monthly, weekly and daily pricing structures that impact the profitability and success of this endeavor. There is Audio pricing, Video pricing, A/V (Audio and Video) pricing strategies as well as distribution pricing which all must equate to profitable billable hours for success.

G1a- Breakeven Point-

When calculating the break-even point for Musically Infinite, it was concluded that the fixed cost of $1, 451.10 is needed to meet the current obligations for the company. Musically Infinite has a variable rate of $12 per day which is what it cost to operate the business each day. The Gross margin which is the $25 daily charge to its customers minus the $12 cost operating expense equals $13a day gross margin. Musically Infinite will operate at a loss unless it sells 112 hours daily billable hours, 291 hours weekly billable hours, 132 hours monthly billable hours and 212 hours yearly billable hours. To illustrate the exact method used for the break even analysis please review the following formula:

$1, 451.10 ÷ $25 - $12 = 111.62 billable hours

Being that time sold for Musically Infinite is daily, weekly, monthly or yearly this unit of sale must be based on one of those billable hours. The profit margin varies with each varying price structure as indicated below:

Daily…………..$25/day
Weekly………..$17/day
Monthly………. $11/day
Yearly…………..$6.85/day

These rates are based on the projected sales prior to the anticipated percentage increases as time progresses. When the current assets are divided by the current liabilities the current ratio equals 1.49 which acid test ratio is found by adding cash accounts, accounts receivable and short-term investments by then dividing current liabilities, which equate to a healthy and prosperous company. The salary structures are not inclusive of commission based incentives thus there are no additional variables regarding salaries to calculate. The breakeven time for Musically Infinite is 14months. Musically Infinite will start to begin to operate profitable in the second month of year 2 (two) of operation. Given the amount of interest in the digital audio explosion will start an upward swing toward a rewardingly prosperous and stable organization.

G1b-Financial Position:

Per the projections put forward, by the end of the second month of year 2 (two) or 14 months of operation, Musically Infinite’s estimated profits will have earned a true profit of $49, 911.18. This profit includes all expenses incurred barring any catastrophic occurrences that would hugely affect the level of operations. Based on profits and losses as well as the assumptions Musically Infinite is showing to be an intelligent choice of business endeavors without the need to constantly purchase new raw materials which would directly affect operating costs and have serious impacts on all profits as the expenses would be affected and have the domino effect. The projections make the assumptions that there will be no additional fluctuations in power, property taxes, and equipment purchases that cannot be offset by the bartering agreements already in place. The assumptions are based upon projections that upon implementation in November 2012 everything will proceed forward.
Include the estimated financial position of the company at the end of the first year and the estimated capital/investment needs. Make sure to include any assumptions you used in estimating this information.

G1c-Capital/Investment Needs:

Musically Infinite’s initial investment of $1,500,000 that is borrowed from Bank of America to purchase outright all of its proprietary equipment and to ensure that there will be enough capital for the business to operate for the first three months without any outside investors which would risk the level of ownership and thus affect the profits due to have to slit things more than already projected. If additional funds are required it will be only after the first year as the projections sufficient for stability through 12 months of operation. Beyond year five, it will be renegotiated on the investments, property, equipment, location and all bartering agreements as it is assumed that more and more companies will desire agreements as it will only serve to benefit any and all companies that want international recognition and unlimited financial potential.

References

Daly M, Wilson M (2001) Risk-taking, Intrasexual Competition, and Homicide. Nebraska Symposium on Motivation 47: 1-36.

Lee, T. (2012, January 30). Why We Shouldn’t Worry About The (Alleged) Decline Of The Music Industry. Retrieved October 16, 2012, from
http://www.forbes.com/sites/timothylee/2012/01/30/why-we-shouldnt-worry-about-the-decline-of-the-music-industry/