SUCCESS STORY
l financing
SBDC Helps Entrepreneur Start a New
Franchise and Play all the Right Chords
Thanks to the Long Beach Small Business Development
Center this musician is passing his rock n’ roll talent
to a new generation.
Rockstars of Tomorrow is a rock school franchise concept that teaches
children and adults the joy of music via group and one-on-one lessons in
guitar, drums, bass, keyboard and vocals. The company launched its first
franchise in 2014 in Norco, California.
Rockstars of Tomorrow
5465 Carson St.
Long Beach, CA 90808
(562) 429-7682
www.rockstarsoftomorrowlb.com
INDUSTRY
Challenges
As a professional musician for over 40 years, Brad Cummings has always been his own boss.
Brad played bass with Sting, The Doobie Brothers, and Cheryl Crowe to name a few famous
artists; yet after seeing the Rockstars of Tomorrow concept first hand, he decided to begin a
new career teaching music. In November 2013, a friend referred Brad to the Small Business
Development Center hosted by Long Beach City College to receive assistance with opening
his franchise.
Music
CHALLENGES
n
Startup financing
n Obtaining permits
n Creating a marketing strategy and
attracting new clients
SOLUTIONS
Best Advice
SBDC Business Advisors Mike Daniel and Nate Jemison helped Cummings and his wife
Stephanie, prepare financial projections, financial statements and a loan application as
well as connected them with potential lenders. The advisors guided Brad and Stephanie
through obtaining permits and licenses from the city of Long Beach and assisted them with
creating a strategy for attracting new customers.
n
Financial projection assistance
Loan packaging
n Target market identification and marketing
strategy assistance
n
CLIENT IMPACT n
n
Obtained a $40,000 loan
Became profitable in less than one year
Small Business Development Center hosted by Long Beach City College
www.longbeachsbdc.org • 562-938-5100
Funded in part through a cooperative agreement with the U.S. Small Business Administration.
SUCCESS STORY
l financing
“[My SBDC Business Advisor] is a small business
owner himself. He gets the challenges of what
we’re doing. The SBDC is a great resource.
They can help you find financing, tell you if
your business model makes sense, research
the competition—all those things you should
be doing.”
Brad Cummings, Franchisee
Rockstars of Tomorrow
Package It Right
Target the Market
Daniel and Jemison helped the couple create their financial
projections and organize their loan application package to obtain
financing. Daniel also connected them with a bookkeeper to keep
their accounting to date. “Mike took the time to look at our business
plan, run some numbers and financial projections and organize it
all on Excel,” Cummings recalls. “He was really integral in getting the
application packaged up.”
“Mike has helped by getting me in touch with people that can help
promote this place.” For instance, Daniel introduced the couple to
students at Long Beach City College and Cal State Long Beach who
interviewed them, videotaped Rockstars of Tomorrow students
performing and posted it on school websites. The publicity spread
the word about Rockstars of Tomorrow among a prime target
demographic: college students. Daniel also helped Cummings
identify four main target markets and the channels in which to
attract those markets.
Find the Source
Cummings had approached his own bank for a loan, but since the
bank was not an SBA approved lender and Rock Stars of Tomorrow
was not an established franchise, they were unable to help. Daniel
and Jemison introduced him to several potential lending sources,
including a banker from Chase who visited the location and was
“very impressed,” Cummings says. Ultimately, however, Cummings
chose to go with a $40,000 loan from the City of Long Beach.
Get Permission
As the business location was formerly home to a dog grooming
shop, building it out and transforming it into a full recording studio
and rehearsal space required a great deal of work. The couple had to
upgrade electrical systems to handle the power demands, build an
ADA-compliant restroom for customers and soundproof the space
so residential and commercial neighbors wouldn’t be disturbed.
The SBDC’s knowledge of the permitting process at the City of Long
Beach helped ensure that it all went smoothly.
Client Impact
Rockstars of Tomorrow opened in March 2014 and was profitable
within a year. Today the company has more than 60 students and
eight to 10 independent contractors teaching music at any given
time.
Cummings’ immediate plans are to upgrade the company’s website,
grow the business and continue booking live performances for his
students at local events and venues. These performances not only
give the students a chance to hone their chops, but also attract new
customers. To reach his target markets, he is creating a “Mommy
and me” class for infants and children up to age 5 that will teach
beginning articulation, hand-eye coordination and motor skills. He
plans on using a daily deal to attract mothers looking to advance
their children’s skills as well.
“I’ve been self-employed all my life,” Cummings says. “When you’re
self-employed, you get up every day and you’ve got to make
something happen. If you make it happen, the sky’s the limit.”
Small Business Development Center hosted by Long Beach City College
www.longbeachsbdc.org • 562-938-5100
Funded in part through a cooperative agreement with the U.S. Small Business Administration.