MagicCaravanCollective
BusinessPlanby
Emily Egan
Matt Olenik
1
TableofContents
ExecutiveSummary Mission
ElevatorPitch
ProjectedSalesandProfit
KeystoSuccess
Objectives
Company and Management Team
CompanySummary
Descriptionofrolesandresponsibilities
StartUpSummary
Product/Service
Product/Servicedescription
ValueProposition
UserExperience
IntellectualProperty
Risks/Challengesandhowtomitigate
Target Market
Targetmarketneedsaddressedbybusiness
SizeofMarket(CurrentandProjected)
CurrentMarket
ProjectedMarket
TargetCustomers
CompetitiveLandscape
Overviewofcompetitivelandscape
Competitiveadvantage/strengthsandbarrierstoentry
Strategy and Implementation
Currentstatusofthebusinessandtractionto-date MarketingPlan
SalesStrategy
Milestonesforthenext6-12months(SalesForecast)
Fundingneedsanduseoffunds
Financials
FinancialProjections–2years
RevenueModel
Appendices
Financialdetailsandsupportinginformation
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ExecutiveSummary
ThegoalforMagicCaravanistoutilizeeventsasatooltocreategenuine,face-to-facerapportbetweenthe
individualsbehindthecompanyanditssupporters,whilealsoallowingthediversegroupofattendeesto
shareanunforgettableuniqueexperience.
MagicCaravanhasmultiplerevenuestreamsthatareinterdependent.Althoughthecompanyiseventcentric,
wewanttomakethebarrierstoentryaslowaspossibleforattendees,andhencelittletonorevenuewillbe
generatedthroughsellingtickets.EventswillprimarilybesponsoredbylocalbusinessesinthePhiladelphia
community.
Weseektogeneraterevenuethroughunorthodoxmerchandise,contentlicensing,andwebtraffic.By
licensingMagicCaravanbrandedvideocontenttoYouTubeandotheroutletsthatutilizetheCPMmodel,we
havethepotentialtoraiseadditionalfundsbypromotingtheproductsofotherbusinessesinMagicCaravan
contentthroughadvertisements.Thebulkofthecompany’sincomewillbegeneratedthroughthesaleof
brandmerchandise,includingapparel,functionalitemssuchaslighters,andevent-specificmemorabiliasuch
asbrandedmasonjars,whichwillbeavailableateventsandthroughotheronlineretailers.
DuetothefactthatMagicCaravan’slargestassetsareintangiblebrandvalueandstrongleadership,this
endeavorrequiresanupfrontinvestmentofafewthousanddollarsbeforeitwillbecomeprofitable.These
fundswillbeallocatedtowardspurchasingmerchandiseinventory,buildingacohesiveandprofessional
digitalpresence,hostingevents,andsecuringtrademarkandcopyrightprotectionforthecompany’sassets.
Currently,MagicCaravanhasthreeinvestors,includingthecompany’stwofounders,butthecompanyis
seekingadditionalinvestmentfrominterestedindividuals.
Mission
MagicCaravanisacommunity.Throughuniquepop-upfestivalsandthought-provokingmediaprojects,westrive
to showcasetheworkoftalented individualsintheartswhilesimultaneously nurturingasenseofunityand
appreciation for self- e x p r e s s i o n , personal growth, and unexpected adventure.
Elevator Pitch
MagicCaravanhostsboutiquepop-upfestivalsinnon-traditionalvenuesandstrivestoprovideanunmatched
experienceforthosewhoattend.FestivalcultureisgrowingrapidlyamongyoungadultsintheU.S.andwe
focusongrowingabrandaroundthepositive,welcomingatmospherefoundatlargescalefestivals.However,
unlikethoseevents,MagicCaravangatheringsareaffordable,easytogetto,andtakeplacenumeroustimes
throughouttheyear.
ProjectedSalesandProfit
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Highlights
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Sales
GrossProfit
NetProfit
Year1
(2015)
Year2
(2016)
Year3
(2017)
4
Keys to Success
1.
2.
3.
4.
5.
6.
7.
8.
Implementingpersonal,facetofacegrassrootsmarketingefforts,bothatoureventsandoutsideof
them
Buildingstrategicpartnerships&sponsorshipswithlocalbusinessesinPhiladelphiaandeventually
acrossthecountry
IdentifyinginfluentialbrandadvocatesandenrollingthemtocreateandpromotetheMagicCaravan
lifestyle
Designinguniqueeventexperiencesthatboastapositive,welcomingenvironmentfornewattendees
Maintainingloweventcoststoallowforfreeornearlyfreeadmission
Creatinghighquality,engaging,andthought-provokingmediacontentandeventmediacoverage
Planningandexecutingunorthodoxdigitalandphysicalmarketingstrategies
Monetizingspecificeventelements,brandmerchandise,eventmemorabilia,anddigitalcontent
Objectives
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Createan‘underground’butexceptionallywelcomingMagicCaravancommunity
BuildaloyalbaseofsupportersandgainbrandrecognitionspecificallyinPhiladelphiabefore
expandingg e o g r a p h i c a l l y Attractnewparticipantswhilemaintainingahighretentionrateforeventattendees
Developastrongwebpresencewithstrategicwebsitestructureandconsistentsocialmediause
Establishanarchiveofself-producedmediacontent,relatingtobotheventsandotherculturaland
social topics
Demonstratebrandvaluetopotentialeventsponsors
Successfullymonetizeeventconceptsandachieveprofitabilityforthecompany
CompanyandManagementTeam
CompanySummary
ThekeyelementsofMagicCaravanCollectiveare:
1. Cultivatingacommunity.TheultimatesuccessofMagicCaravanwillrelyonthecompany’sabilityto
createatightknityetwelcomingcommunityamongitssupporters.
2. Designinguniqueevents.MagicCaravanmustbringauniqueandcreativeapproachtoeachelement
ofitsevents,includingeventconcept,venue,atmosphere,entertainment,andmarketingtactics.
3. Promotingtalentedartists.MagicCaravanmustearnareputationasatastemakerforupandcoming
artistsinandaroundPhiladelphia.
4. Creatingaqualitywebpresence.Whilemostofthecompany’sfocuswillbeonfacetofaceinteraction
outsideoftheInternet,MagicCaravanwillneedtosupporttheseeffortswithacohesiveandwell---
structured digital presence through quality content and engaging social media accounts and website.
Description of roles and responsibilities
MagicCaravanCollectiveisco-foundedandmanagedbyEmilyEganandMattOlenik,whoarebuildingateam
ofconsultants,mediacreators,andbrandambassadorstohelpimplementthecompany’smissionina
professionalandfinanciallyviablemanner.
ManagementTeam–Theseindividualswillnottakeasalaryuntilthecompanyisprofitable.
Director–MattOlenik
-Generaloversightofbusinessoperations–long-term
-Eventorganization
-Oversightoffinancialrecording
-Investorrelations
-Brandpartnershipsandsponsorships
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MattgraduatedfromDrexelUniversityinthespringof2015withaBSinMusicIndustryanda
minorinBusinessAdministration.Currently,heisthePromotionsCoordinatorattheArdmoreMusic
Hall,whereheorganizestheFunkyBrunch&Marketseriesinadditiontohelpingwithgeneralvenue
marketingandoperations.Additionally,inOctober2014MattaidedintheplanningofGolden
AutumnMusicFestival,afull-dayeventofmusicandactivitieswithproceedsbenefittingtheMakeA
WishFoundationchaptersofPhiladelphia&SusquehannaValley.
CreativeDevelopment–EmilyEgan
Responsibilitiesinclude:
-Generaloversightofbusinessoperations–day-to-dayoperations
-Brandpartnershipsandsponsorships
-Media&PRrelations
-Eventorganization
-Marketing/Promotioncoordination
EmilyisgraduatingfromDrexelUniversityinthewinterof2016withaBSinEntertainmentandArts
Management, with a concentration in Performing Arts Management and a minor in Business
Administration.InOctober2014,sheaidedintheplanningofGoldenAutumnMusicFestival,afull-
dayeventof musicand activities with proceeds benefittingthe MakeA Wish Foundation chaptersof
Philadelphia& SusquehannaValley.Sheserved astheVendorCoordinatorforthefirsteverLoveon
theStreetsFestival,anon-profitmusicandskateboardingeventwhoseproceedsbenefittedthe
Franklin’s Paine Skatepark Fund. Emily currently has anOperations/Research & Development intern
position at CID Entertainment,the preeminent festival and tour VIP and travelpackage provider in
NorthAmerica.
Positionstobefilleduponfindingthebestindividuals:
MediaCoordinator
-Maintainwebsiteandsocialmediacontent
-Initiateandoverseebothproductionandpromotionofvisualprojects
-Arrangewithmediacreatorstoprovidecoverageofeveryevent Merchandise
Designer
-Conceptualizeanddesignnewmerchandiseitems
-Coordinatewithproductionfacilitiestocreatedesiredmerchandise
-Managefulfillmentofdigitalmerchandiseorders
-MaintainapresenceatMagicCaravaneventstosellmerchandiseonsite
BusinessStrategist
Areas of Expertise:
-Raisingandinvestingcapital
-Business development
-Brandingandcompanyimage
-Technologicaldevelopmentandinnovation
CreativeMarketingConsultant Areas of expertise:
-Grassroots marketing
-Brandingandcompanyimage
-Useoftechnologyinmarketing
-Strategicplanning
-Webdesignandcreativedesign
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SupportTeam–AlthoughMagicCaravandoesnotcurrentlyhavefundstohiretheseindividualsforthese
positionsfull-time,thecompanydoeshaveateamofskilledindividualsworkingeitherforfree,payperproject,
orforashareofequityinthecompany.
-MediaCreators&Curators
-Photographers,videographers,andgraphicdesigners,toproduceinteractivedigital
brandedcontent
-Socialmediacontentmanagertooverseeandmonitoronlinepresence
-Publicrelationsspecialisttobuildrelationshipswithmedianewspublications
includingblogs,magazines,radiostations,etc.
-ProjectManagersandProjectArchitects
-Eventstructuringandorganization
-Onsiteoperationalassistance,logisticalcoordinating
-Customerandguestservices
-Ticketing
-Brand Ambassadors
-InfluentialandmotivationalindividualswhospreadawarenessoftheCaravan
through grassroots marketing and promotional efforts
-Compensatedfortheireffortsthroughmerchandiseandtickets
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Start-upSummary
MagicCaravanhastwoco-founders,MattandEmily,whowilleachinvest$1,000,andanadditionalinvestor
willalsoprovide$1,000foratotalstartupinvestmentof$3,000.
Start-UpFunding
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Expenses
Assets
Investment
Loans
Start-upFunding
Start-upExpensestoFund
Start-upAssetstoFund
TotalFundingRequired
$800
$4,200
$5,000
Non-cashAssetsfromStart-up
CashRequirementsfromStart-up
AdditionalCashRaised
CashBalanceonStartingDate
TotalAssets
$1,300
$2,900
$0
$2,900
$4,200
Assets
LiabilitiesandCapital
Liabilities
CurrentBorrowing
Long-term Liabilities
AccountsPayable(OutstandingBills)
OtherCurrentLiabilities(interest-free)
TotalLiabilities
$0
$0
$0
$0
$0
Capital
PlannedInvestment
MattOlenik
EmilyEgan
Outsideinvestor
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$1,000
$1,000
$1,000
AdditionalInvestmentRequirement
TotalPlannedInvestment
LossatStart-up(Start-upExpenses)
TotalCapital
TotalCapitalandLiabilities
TotalFunding
$2,000
$5,000
($800)
$4,200
$4,200
$5,000
Start-up
Requirements
Start-upExpenses
Legal(registerLLC)
ResearchandDevelopment
Rent
FeesandPermits
InitialMarketing/Promotion
Website
BusinessCards
Other
TotalStart-up Expenses
$150
$0
$0
$0
$300
$200
$125
$25
$800
Start-upAssets
CashRequired
Start-upInventory
BrandLogo(s)
Trademark/Legal(LongTermAsset)
OtherCurrentAssets
Long-termAssets
TotalAssets
$2,900
$650
$300
$350
$0
$0
$4,200
TotalRequirements
$5,000
Product/Service
Product/ServiceDescription
MagicCaravanaimstoprovidefanswithuniqueexperienceswhilepromotingtalentedindividualsinthearts
andspreadingthecompany’sideals.Thismessagewillbedeliveredthroughoriginaleventsthathighlightthe
personalidentitiesofartists,thought-provokingandsociallyrelevantmediacontent,andoutoftheordinary
butmemorablemerchandise.
AMagicCaravaneventmightlooksomethinglikeapop-upbarbecueintheparkwithamusicperformance,or
itcouldinvolvesomethingmoreelaboratelikeafulldaymusicandartsevent.Regardless,eventsarethe
foundationuponwhichtheMagicCaravanlifestylecanbedefined.Theyallowthecompanytopresentits
messageinarealandtangibleform,bybringingtogetherartistsofdifferentmediumsandfacilitatingthe
organicgrowthofacommunitythroughface-to-faceinteraction.
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Thecompanywillalsoproducequalitymediacontenttobepublishedthroughitsonlinechannelsandsocial
mediaoutlets.Throughspecialprojects,MagicCaravanwillfeaturethepersonalitiesandfacesofartiststhe
companypromotesasameanstoinfluenceandstimulateaudiences.Suchprojectswillincludeartistfeatures,
communityinterviews,eventcoverage,andvideojournalismhighlightingunder-the-radarbutimportant
issues.
Merchandisewillbethethird toolbywhich MagicCaravancanempoweritsfanbaseto promotethecompany
andspreaditsmessagetonewaudiences.Inadditiontoapparelitemssuchast-shirtsandhats,Magic Caravanwillcreatefunctionalitemslikelightersandrollingpapers,event-specificmemorabiliasuchas
brandedmasonjarsandbottles,andartworkintheform ofpostersandprints.
ValueProposition
MusicfestivalsarerapidlybecomingaculturalstapleforyoungadultsintheUnitedStates.Theyprovide
attendeeswithanopportunityfordetachmentandpersonalgrowth,socialacceptanceandpositivenew
relationships,arefreshingoutlookontheworldthatsurroundsthem,andsomuchmore.However,between
risingticketprices,difficultchoicesbetweenlineups,andtravelrequirements,fansarelimitedwiththe
numberoffestivalstheycanattendeachyear.MagicCaravanexiststosolvethisveryproblem,bycapturing
thepositive,inspiring,andunexplainablymagicalelementsoffestivalsandtransmittingthemthroughmedia
content,merchandise,andmostimportantly,events.WhatseparateMagicCaravanprojectsfromregular
festivalsistheiraccessibility,affordability,frequency,intimacyandunmatchedattentiontodetailsthat
highlightthepersonalidentitiesofboththeartistsandattendees.
User Experience
Throughattendanceatevents,MagicCaravanwillprovideaudienceswithtangibleandintangibleexperiences
thatwillenablethemtodiscovernewplacesandthings,aswellasgrowasindividuals.Theseeventswill
featureremarkablefood,beverage,andmerchandisefromsmallbusinesses,inanefforttogrowthelocal
communityandhelpformnewrelationshipsbetweenthesebusinessesandthecompany’saudience.
TheMagicCaravanwebsiteandsocialmediaaccounts(Instagram,Facebook,andSoundcloud)willprovidea
full-sensorycomplementtotheliveevents,byspreadingalifestylethroughthought-provokingdigital content.
Thiswillbeachievedthroughbrandedmediacontentintheformofrecapvideosandphotos highlightingthe
eventstructure,overallvibe,andpersonalitiesoftheCaravanorganizersandevent attendees.Outsideof
events,mediacontentwillincludeoriginalartwork,music,studiosessions,interviews, articles,andmore,
completewithapersonaltouch.
IntellectualProperty
AllcontentcreatedontheMCwebsiteandsocialmediapages,aswellascontentpulledfromartists’personal
pages,iscopyrightedmaterial.Theprojectsinwhichthecompanywillengageitsartistswillbecopyrighted
materialaswell,sinceMCCiscreatingnewcontentexclusivetothebrand’sname.MagicCaravanwillregister
copyrightsforonlineworks,asthiswillprotectoriginalauthorshipoftext,music,artwork,audiovisual
material,soundrecordings,andmore.Anyillegaluseofthismaterialwillbesubjecttocopyrightinfringement.
Thecompany’sfoundersarealsointheprocessofregisteringforatrademark,astheyfeelthat
theMagicCaravannameperfectlysuitstheirvisionandmessage.Theywanttoprotectandownthisnameso
thattheycancontinuetobuildourbrand’spresenceandexpandintobroaderterritoryasthecompany grows.
Risks/challenges and how to mitigate
Thecompany’sbiggestrisk/challengeiscompetingwithothereventsaroundthePhiladelphiaarea.Thereare
somanyeventshappeningweeklyinPhiladelphia,especiallyontheweekends,andsomeoftheseeventscost
peopleadecentamountofmoney.MCCaimstostandoutfromthesecompetitorsbycharginglittletonocost
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forattendance,planningeventsduringoff-peaktimes,andaddingaspecialpersonaltouchtoeachevent.
Theseaddeddetailswillhighlightthetruepersonalitiesofalloftheartistsinvolvedthroughcuratedfoodand
drinkmenus,specialsetlists,andliveartinstallations.Anotherrisk/challengethecompanywillfaceis
drawingaudienceattentiontoitsbrandedmediacontent.MCCwillcapturethememoriescreatedateventsin
uniquewaysthroughlivesoundrecordings,genuinephotographyandvideo,andtangiblememorabiliathatis
specifictotheenergyandmoodofeachevent,givingpeopleareasontoconnectwiththatcontentafterthe
fact.
TargetMarket
Target market needs addressed by business
MagicCaravanmustdelveintotheculture,lifestyle,andmindsofthosethecompanyisaimingtoreach
throughdirectmarketing.Oneofthemostdefinitivecharacteristicsoftheconsumersitistryingtoreachis
thattheyattendfestivals.Musicfestivalsarewithoutadoubtarapidlygrowingpartofthesummerculturein
thiscountryamongtheteenageandyoungadultagegroups.MCCfeelspassionatelythatthoseindividuals
willresonatewiththeidealsthatthecompanyrepresents.Thesepeopleunderstandthepowerofbringing
multipleartformsintocollaborationwitheachothertoaccomplishsomethinggreaterthananyoneform
couldonitsown.Inasense,MagicCaravanCollectiveexiststocapturethemagicofmusicfestivalsthrough
onlinecontent,musiccurating,visualart,merchandise,andmusicevents.
Size of market (current and projected)
Thecompany’scurrentmarketandprojectedmarketconsistsofindividualsbetweentheagesof18and34,
knownastheMillennialgeneration.AccordingtoanarticlefromthePewResearchCenter,theMillennial
generationisprojectedtosurpasstheBabyBoomergenerationasthenation’slargestlivinggeneration.In
2015,Millennialsareexpectedtonumber75.3million,surpassingtheexpected74.9millionBabyBoomers. Tostart,MagicCaravanisfocusingonthisgroupofpeopleinPhiladelphiaandthesurroundingareas,with thepotentialtofocusadditionaleffortsNewYorkCityandthesurroundingareasthroughbrandpartnerships.
BasedonanalyticalreportspulledfromMCCsocialmediaaccountsandwebsite,thefollowinginformation
wascompiledonthecompany’scurrentaudience:
Facebook:MCCpulledthefollowinginformationfromitscurrentMagicCaravanCollectivepagelikes.Asof
March30,2015,ithas160pagelikesofdifferentages.Overall,62%oftheirfansaremenand37%are
women.50%ofthepage’sfansaremenages18-24and28%arewomenages18-24.8%offansaremenages
25-34and5%arewomenages25-34.Theremaining9%offansareages35-65+.
(Source:Facebook)
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Withthisinformation,MCCpredictsthatitsprojectedmarketonFacebookoverallwillgrowanaverageof
200%eachyear.AsofMarch30,2015,thereare160totallikesontheMCCFacebookandthecompanyaims
toincreasethatnumbertoover1,500by2017.
FacebookMarketAnalysis
Instagram:Thefollowingchartisbasedon theamountofcommentsMCChasreceivedon itsphotosand
videoswithin thelastfew weekson Instagram.Theyellow on thepiechartrepresentsthecomments received
fromfollowers(29.5%)andthewhiterepresentsthecommentsreceivedfromnon-followers(70.5%).MCC
hasreceivedatotalof44commentsonitscontentinaperiodofoneweek(March24,2015-March30,2015).
Withsomanynon-followerscommentingandinteractingwithMCCcontent,itshowsthatnewindividuals are
beginning to learn about the brand.
(Source:Iconosquare)
With150followers,702likes,and44commentsonourcurrentcontentonInstagram,wepredictthatour
overallfollowingsteadilyincreasesoverthenexttwoyears.
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Current Market
MCC’scurrentmarketconsistsofcurrentfansoftheartistspromotedatMagicCaravaneventsaswellas eventattendees.Additionally,itincludesthepersonalnetworksofeachmemberofMCC’smanagementteam
anditsbrandadvocates,aswellasthoseindividualscurrentlyimmersedinthePhiladelphiamusicscene.This
marketincludescreativeindividualsthatareinterestedintheartsandculturalfestivals,mainlywithinthe agerangeof18to34.MCChasfollowednumerousdifferentpeople,brands,andcompaniesonsocialmedia
pagesinordertopromoteartistswithsimilarinterestsandlifestyles.Thesefollowingsincludeseveralartists
andculturalblogs,musicandartsfestivals,andmillennialandyoungadultattendees/followersofthese
mediums.Thismarketofindividualsspendstheirdisposableincomeonattendingliveentertainmentevents,
goingouttobarsandrestaurants,andfindingwaystomakeadifferenceintheirlivesandthelivesoftheir
lovedonesbyspreadingknowledgeandcreativity.
ProjectedMarket
MCC’sprojectedmarketconsistsprimarilyofthoseyoungadultswhoareinterestedinfestivalculture–
individualswhoappreciatetheconceptofbringingtogethermultipleartformsinacollaborativespirit.Music
festivalsarebecomingamoreprominentpartofsummercultureeachyear.MCCwillrepresentthepositive
sentimentthatsurroundsmusicfestivals,andprovidetheseaudienceswithaplacetoexperiencethesesame
feelingsyearroundinbothphysicalanddigitalenvironments.
Targetcustomers
Menandwomen,ages18-34,progressiveandopen-minded,appreciativeofartsandmodernculture,possessing
a decent amount of disposable income to spend on artistic creations including artwork, prints,jewelry,
clothing, and events.
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CompetitiveLandscape
Overview of competitive landscape
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SoFarSounds
SoFarSoundsoffersartistsandmusicfanstheuniqueopportunitytoperformandexperiencefree-of-cost,
intimategigsinpackedlivingroomsregularly.ThemovementstartedinLondonbutisnow goingglobalwith
shows in New York,Philadelphia,Paris,and many other cities worldwide.SoFar Sounds is the world’s largest
live music discovery community; curating secret,intimate gigs in unique spaces all around the world.The
showspresented bythiscompanyareposted onlybydate,withouttheartiststhatareplaying.Fansmustsign
upforthedatetheywishtoattend,andSoFarSoundswillchoosetheattendeesrightbeforetheeventoccurs,
givingattendeesaspecificlocationto meetforthesecretshow.Theseeventsstrayaway from typicaleventsin
thesensethatattendeesmustputawayalldevicesandfocussolelyonthemusicthatispresentedinfront
ofthem.Artiststhatareselectedtoperformattheseeventscanbecompensatedeitherthroughcashin hand
orwithpremiumvideocontentmarketedbySoFarSounds.AfteranartistsplaysaSoFarSoundsgig,theyare
asked to join the ‘artist community’ where they offer artists continual support through their constantly
expanding alumni programme. This features global touring, gig marketing, social media promotion, and more.
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Funkadelphia
FunkadelphiaisanindependentmusicandartspublicationbasedoutofPhiladelphia.ThroughFunkadelphia
fansanduserswillfindthefreshestnewfunkybeatsandjams.Updateddaily,Funkadelphiaaimstokeep
peopleinformedwithnewmusic,artistinterviews,eventcoverage,exclusivematerial,andmore.Witha
primaryfocusonthelocalscene,Funkadelphiastrivestobringastrongerqualityofmusictopeople’s
eardrums,whilestillinvestigatingallofthenichesandcornersofPhiladelphia.InMarch2014,Funkadelphia
releaseditsdebutcompilation“It’sAlwaysSunnyInFunkadelphia,”featuring19exclusivetracksfromlocal
musicians.Inthesummerof2014,FunkadelphiadebuteditsfirstsponsoredstageatF.A.R.M.Music&Arts
FestivalinVernon,NJ,showcasingprimarilylocaltalentfromthetri-stateareawithguestheadlinerseach
night.Inthefallof2014,Funkadelphiabeganitsfirsteventseriesandexpandedbeyondjustitsnewsand
journalismaspects.Funkadelphiaalsohelpslocalartiststhroughstreetteampromotion,artistmanagement
andpublicrelations,eventbooking,stagemanagement(festivals),andrecordlabelmanagement
(FunkadelphiaRecordings).Funkadelphiaseekstobuildandstrengthenasenseofcommunityinthe
Philadelphiamusicsceneandallaspectsoftheartcommunity,byencouragingandregularlyparticipatingin
artisticcollaboration..
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WePresent
We Present is an event ‘gathering’company that strives to build a community through events by partnering
with local Philadelphia and New York City artists to promote collaboration and conversation. Their website
andsocialmediapagesprovideaverylimited amountofinformation aboutthecompany,which ispartoftheir
valueasabrand.Itistheultimateoppositiontowhatthe‘corporatemachine’isfeedingtoaudiences throughmediaand otherevents.WePresent hasrecentlyorganized anevent inPhiladelphia includeOde To
Earth,anall-dayworkshop-basedmusicandartsfestivalwith2stages,vending,andfood.Workshopsincluded
information on GMOs, yoga, gardening, fracking, permaculture, and more. Tickets for this event were priced
at$20forearlybirdtickets,$27foradvancedtickets,and$35forday-of-showtickets.WePresentalso
promoted2eventdatesofthe‘RoadtoSonicBloom’Tour,whichwasaseriesofconcertsaroundthecountry
leadingup toSonicBloom musicfestivalin Colorado.
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TresChicMusic
TresChicMusicisamusicbookingandrecordingcompanyandmusicblogpromotingtheundergroundtalent
ofPhiladelphia.Theyfindandbooktalentforevents,alongwithfindingtherightspaceforthesound.They
alsoprovideservicesinsongwriting,production,mixing,andmasteringofsoundrecordings,andmusicand
eventcoveragethroughtheirblog.UpcomingeventsthatTresChicisinvolvedinincludesLoveOnThe
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StreetsFestival,JerseyShoreMusicFestival,andGoHarder!feat.BarelyAlivepresentedbySpecialKat
DistrictN9neinPhiladelphia.TresChicMusichasalsorecordedartistsincludingZanzibarBlue.
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FacesofFestivals
FacesofFestivalsisaUSbasedfestivalandeventphotographycompanycapturingmusicfestivalmemoriesof
artistsandattendees.FacesofFestivalsencompassestheentireatmosphereandmoodofamusicfestival
throughauthenticphotographyofeveryoneenjoyingthemselvesinthefree-spirited,consciouslydriven
environment.Thesephotoscreatecontentwithwhicheventattendeescanengagewiththepromotersofthe
eventthroughfindingpicturesofthemselvesonsocialmediaaccounts.Thesephotosalsocreatetangible
memoriesthatcanalwaysbelookedbackonweeks,months,andyearsafteraneventhashappened.
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BoilerRoom
BoilerRoomistheworld’sleadingnews/mediawebsitethathasformedacommunityofundergroundmusic
fans.Theyknowfromexperiencethatthereisamassaudienceforundergroundmusicandbelievethat
whereveryouliveintheworld,youshouldhaveaccesstothebestemergingscenesandveteranartistsalike.
BoilerRoomisnotjustmore“content”fortheinternet.Theybelieveinevents,andinthepeoplethatmake
thoseevents.Theyfeelthateveryexperienceofabroadcastcanandshouldbefascinatingandmemorable–
makingyouwanttoknowmoreandmoreuntilyouareasobsessed.BoilerRoomsessionsarebroadcastper
theWhat’sOnpage,reloopedfor72hoursandperformancesarethenstoredintheirarchive,foraudiencesto
listentoatanytime.
Competitive advantage/strengths and barriers to entry
Whenplacedsidebysidewiththecompetitorsabove,MagicCaravandistinguishesitselfinseveralways.MCC
bringstogethermanysingleelementsthateachcompetitorusestosucceedintheirbusiness.MCCbelievesin
theideaofdesigningandproducingintimate,pop-upexperiencesforlittletonocost,butitdoesnotwantto
maketheseexperiencesexclusive,suchasthosepresentedbySoFarSounds.Aseenintheunderground
communityformedbyBoilerRoom,MCCwantstoexposeaudiencestonewmusicandartfromaroundthe
countryinawelcomingandnurturingwaythroughtheuseofinteractivecontent.Theywanttosharethe
memoriescreatedatMCCeventswithgenuineandpersonablemedia,byexpandingontheconceptpresented
byFacesofFestivals.SimilartoWePresentandTresChicMusic,MagicCaravanstrivestocreatea
community-drivenenvironmentrelatedtotheartsandthosewhoappreciatetheseforms.Thecompanyaims to
notbeyour‘typical’promoterofevents,butratheradvocatesandinfluencersofmultipleartisticscenesand
theiridentitiesasawhole.
AlthoughFunkadelphiaislistedasacompetitor,MagicCaravanhopestoworktogetheronthepromotionof
eventsinthefuture,astheyhavegoodrelationshipswithartistsinPhiladelphia.
Inadditiontoanevent-basedcommunity,MCCplanstoincorporatemediajournalismthatgoesbeyondjust
musiceventsanddelvesintootherterritoriesofrelevantsocialtopics.Thiswillbeachievedthroughthe
company’spartnershipwithWhenTheMusic’sOver,whichiscurrentlyexpandingtheirfocusintoahubfor
thought-provokingconversations.
StrategyandImplementation
Currentstatusofthebusinessandtractionto-date
Currently,Magic Caravan has launched its social media accounts (Instagram and Facebook) and is focusing on
buildingthecompany’sfollowingthroughthoseoutlets.Thecompany’swebsite,www.Magic-Caravan.comis
nearingcompletionandoncefinished,willbepublicizedaspartofalargemarketingpush.MCChasalso
announceditsfirstevent,aone-daymusicandartseventonSaturday,April25,withlocalPhiladelphia
musiciansand visual artists showcasing theirwork.This event will mark the first major opportunity to
14
strengthenourcommunityofsupportersthroughface-to-faceinteractionatanevent.Wealsohavetheartists
onourrosterandbrandadvocatesspreadingthewordaboutthecompanyandinvitingfriendstofollowour
socialmediaaccounts.
Marketing Plan
Inahyper-competitivemusicindustry,MagicCaravantakesadifferentapproachtomarketingeventsand
buildingabrand.Thegeneralideaisforthecompanytohostanumberoffrequent,smalltomid-sizeevents
andusethesegatheringsastheprimaryfoundationforbuildingacommunityandtangiblebaseofsupportin
Philadelphia,andeventuallyspreadtootherpartsofthecountry.Fromthere,self-producedmediacontent
andbrandmerchandisewillbeutilizedtogrowthebrandfurtherandgenerateabulkofthecompany’s
revenue.
MagicCaravanplanstoutilizetheideaofspontaneouspop-upgatheringstocreatean‘underground’following,
andinturnusethismomentumtodevelopabaseofsupporterswhoareconnectedtothecompanybytext,
socialmedia,oremail.TheseindividualswillbethefirsttoknowaboutMCeventsandotherspecialofferings
fromthecompany,whichprovidesanincentiveforpeopletoconnectdirectlywiththeCaravanthroughthese
channels.Aheavyemphasiswillbeplacedonencouragingpeopletobringnewfriendstoeventsand
rewardingthosewhodosowithfreeadmission,drinktickets,orothertokensofappreciation.
TheoverallgoalisforMagicCaravantodevelopastrong,tangiblesupportbaseinPhiladelphiathroughlocal
events,andexpanditsdigitalpresenceworldwidethroughqualitymediacontentandsocialmediaoutlets.
Eacheventwillbedocumentedandsharedthroughbrandedmediacontentintheformofaudiorecordings,
videorecaps,andphotographsthatfeaturenotonlytheartiststhatperformedateachevent,butalsoasmany
oftheattendeesaspossible.ThiswillkeeppeoplefurtherengagedwithMagicCaravan’sFacebookand
Instagramaccounts,aspeoplewillbeexpectingtofindqualityphotosofthemselvesthere.Additionally,the
companywillcreateevent-specific‘memorabilia’tohelpcommemorateeventsandcreatelastingphysical
memoriesforattendees.
Physicaleventscombinedastrongonlinepresencewillhelptodrivesalesofmerchandise,whichwillbe
availableonsiteateveryMCevent,ontheMagicCaravanwebsite,andonthewebsitesofotheronline
retailers.Currently,MagicCaravanhasinterestfromthreeapparelandlifestyleretailerstoselltheir
merchandise–ChaosThreads(Colorado),LayLowClothingCo.(NewYork&Florida),andDivinelyDistilled
Collections(StateCollege,PA).
Additionally,MagicCaravanplanstocapitalizeonstrategicpartnershipswithbusinessesandmedia
publications.EacheventwillbesponsoredbyalocalbusinesswhoseidealsmatchupwiththoseofMagic
Caravan,helpingtofurthersupportthenotionofbuildingastrongcommunity.Thecompanyalsohasstrong
tiestoTheSaucyMonster,aNewYorkandChicagobasedmediaproductioncompanyandWhentheMusic’s
Over,alive-music-publication-turned-conversation-space.BothcompanieshaveagreedtoworkwithMagic
Caravantodocumenteventscuratestoriesaboutthecompanyanditsmessage.
Overviewofspecificmarketingtactics
I.
Digital
A. Website
1. www.Magic-Caravan.comwillbethemainhubofMCC’sactivity
2. HosttheMagicCaravanMarketplace
3. ThegoalofallonlineactivitieswillbetodrivepeopletotheMCwebsite,wherethey
willhopefullybeconvertedintopayingsupportersthroughmerchandisesales
B. SocialMedia
1. Facebook
15
a)
C.
Regularposting(1-2timesaday)ofcontentfromMCC’snetworkofartists,
aswellasotherinterestingthought-provokinganddiscussion-basedcontent,
such as articles, music,current events, and more.
b) Payto‘Sponsor’FacebookpoststopromoteexclusiveMagicCaravan
projectssuchaseventannouncements,interviews,videoproductions,and
more.
c) Createphotogalleries&videosfromthecontentcollectedatanyMCC
events.Encouragepeopletotagthemselvesorfriendswhoappearinthe
photosandregularlysharethesephotosthroughoutMCCaccounts
consistentlythroughouttheyear.
d) RegularlyincentivizefanstomarketonbehalfofMCCandhelpthemgrowa
Facebookfollowingbyofferingmerchandiseandticketgiveawaysin
exchangeforsupporterssharing/liking/commentingonposts.
2. Instagram
a) Dailypostingofimagesandvideoclipsfeaturingtheworkofindividualsin
MCC’screativenetwork.
b) Tageverypostwithappropriatehashtagsandcaptions,givingcredittothe
originalcreatoroftheworkandlinkingfollowerstotherestofthecreator’s
artwork(viaInstagramortheirpersonalwebsite).
c) Use‘Instagress’tohelpMCCgainastrongerpresenceonInstagram,
includinggrowingthenumberoffollowersandcreatingconsistent
interactionwithrelevantandlike-mindedindividualswhofallintothe
targetmarketofMCC.
d) HostregularcontestsandgiveawaystoincentivizeMCC’sfollowerstohelp
growthecompany’sInstagrampresence.
3. Soundcloud
a) Curateandpublishtwomonthlyplaylists– ‘StaffFavorites’and‘Upand
Coming.’
b) Createaplaylistforeacheventcuratedbytheartistswhowillbe
performing
c) HostandpromoteMC-brandedsetrecordingsfromMagicCaravanevents.
Eachsetwillfeatureanintroductionstatingthedateandlocationofthe
performance.
d) Connectandfollowsimilarartistsandmusicfanstohelpusgrowour
Soundcloudfollowing.
4. Tumblr
a) FollowrelevantTumblrusers
b) Consistentlyreblogcontentfromotherusers
c) Postoriginalcontentintheformofphotos,videos,andmerchandisewhich
alllinkbacktotheMagicCaravanwebsite
5. YouTube
a) PostallvideocontenttoMagicCaravanYouTubeaccount
b) SharefromYouTubetoallothersocialmediaaccounts
c) Createplaylistswithsimilartypesofcontent
d) Producevideojournalismandartistinterviewseries
PublicRelations
1. Sendpressreleasestoblogsandotherrelevantonlinemediaoutletstopublicize
selectMagicCaravanprojects,suchasvideoproductionsandlargerscaleevents.
Potentialoutletsincludebutarenotlimitedto:
a) TheUntz.com
b) Funkadelphia
c) WKDUPhiladelphia91.7FM
d) Thissongissick.com
16
1.
2.
II.
III.
Focusonusingpresstomarketthecompany’soverallmessageandvisionrather
thanspecificpop-upevents
WorkwithWhentheMusic’sOverandTheSaucyMonstertorefinetheMagic
Caravanpressangleandprovidethemwithexclusivemediacontent
Grassroots
A. Promotionatrelevantevents
1. CreateanddistributecustomMCC-brandedlighters,stickers,andbusinesscardsto
distribute at music festivals and other relevant concerts.
2. Generateface-to-faceinteractionwithMCC’stargetaudienceandleavethemwitha
functional item which will likely change hands multiple times.
3. HostDJsetsatfestivalcampgrounds,concerttailgates,parks,porches,outdoor
businessesandmore.
4. TravelwithMCCmerchandisethatisalwaysavailableforsale.
B. Developstrongrelationshipswithlocalbusinesses
1. Createeye-catchinghandbillsandbusinesscardstodistributetolocalbusinesses
thatmakesensewithourtargetaudience.
2. Includethesewithcustomerpurchasesandcreatereferralprogramsforbusinesses.
3. Partnerwithlocalbusinessesforeventsponsorships
a) CurrentlyMCChasrelationshipswithHazelandAshOrganics,BrineStreet
Picklery,SweetTreeArtisanRoasters,BeltaneBotanicals,InfiniteBit,Old
SchoolSkateboards,andmore
b) Prospectivesponsors– recordstores,headshops,organicproducts(food&
body products), breweries, environmental companies
Event-based
A. Engageandconnectwitheventattendees,especiallytheonesthathavenotbeenatevents
before.Determinewheretheyheardabouttheeventandwhattheyknowaboutthe
company.
B. Distributestickers,lighters,businesscardstonewattendees.
C. Createuniqueeventticketsthatdoubleasasouvenirandpieceofartwork
1. Event-specificartworkononesidewithsocialmediahandlesontheother.
D. Sellmerchandiseateveryeventandincludeafreesticker
E. Produceengagingpreandposteventmedia.
1. Postpictures,music,videos,questions,andmoretosocialmedia,allowingfansto
respondandgivetheirinputwithwhattheywanttoseeatevents.
2. PhotographasmanyeventattendeesaspossibleandtagthemintheFacebook
photoalbumafterwards
3. Post‘highlight’and‘recap’footageoftheevent,whichwillallowfanstoremember
theseevents,aswellassharethecontentwiththeirfriendstogetthemtocometo
thenextevent.
Sales Strategy
MCC’sbusinessmodelwillsupportarevenuestreamasfollows:
Revenuefromhostingevents
Revenuefrommerchandisesales,bothdirectlythroughtheMCCwebsiteandthroughotheronline
retailers
Revenuefromlicensingvideocontentandadvertising
Revenuefromother‘lifestyleextension’itemssuchasbeerandwine
OnerevenuestreamforMCCwillbecreatedthroughhostingevents.Whilethecompanyaimstokeep
admissionfreeoratalowcostsoastonotturnoffpotentialguests,MCCplanstoaugmenteventrevenueby
monetizingotherelementsoftheexperienceasidefromadmission.Thesewillincludethingslikefood,beer
(potentiallycustom-brewedMagicCaravanbeer),specialtycocktailscuratedandnamedbytheartists
17
performing, event memorabilia (custom printed mason jars for each event), event artwork, and other
functionalitems.Someofthesetacticswereused atMCC’sfirstmusicand artsevent,HomefortheWeekend
onApril25,2015,withanindoorandoutdoorstagehosting5musicalartists,andvisualartinstallations.This
eventwaspricedat$10perperson,whereeachofour60attendeesreceivedaticketandfreedrinkofchoice.
MCChaddrinkspecialsthateachbandnamedandcreated,basedonsongnamesorlyricsandthealcohol theyenjoydrinking.Drinkswerepricedat$2-4peritemandthemajorityofourrevenuewasmadefrom
thesepersonalizeddrinks.MCC’snexteventisBaconandBeats,apre-JamOnTheRivershowandbreakfast
bonanza featuring bacon themed breakfast foods.
MCCwillalsocollectrevenuefrommerchandisesalesthroughtheirwebsiteandotheronlineretailers.Itis
importantthatMCCresearchestheiraudiencemembers,thetypeofbrandstheyassociatethemselveswith,
andthemerchandisethattheypurchase.MCCwillpartnerwithretailandmerchandisedistributorsthat
reflectthislifestyleandoverallpromotionofartisticindividuals.MCCwillshareapercentageofmerchandise
saleswiththesedistributorsandartists.MCCwillpartnerwithDivinelyDistilledCollections,amarketplace
createdbythemembersofWhenTheMusic’sOver,aswellasChaosThreads(CO)andLayLowClothingCo.
(NY).
Onceasignificantamountofbrandedmediacontentiscreated,MCCwilllicensethiscontenttoaudiovisual
streamingcompaniesincludingYouTube,Vimeo,andothersmallerstreamingcompanies.Streamingcangive
MCCmorecontroloverthewaycontentisdistributed,asitwillbeassociatedthroughtheMCCbrand.MCC
willeitherhostcontentwhereuserswillpayamembershipfeetoaccessallcontentorutilizeCPM
advertisingthroughmediacontent.ThroughappssuchasGoogleAdSense,MCCcancreaterevenueby
displayingrelevant,engaging,andtargetedadsnexttoorwithinaudiovisualcontent.Withevery1,000visits
onthismediacontent,MCCcanleveragetheseviewsintomoney.
MagicCaravanwillalsointroduceaseriesofother‘lifestyle’itemsduringitsfirstorsecondyear,most
notablyspecialtybeerandwinebrewedundertheMagicCaravanname.Thiswilleventuallyallowthebrand
tospreaditspromotionalreachintonewchannelsbydistributingalcoholtoestablishmentsthatare
frequentedbymembersofthecompany’stargetmarket,suchasbarsandmusicvenues.
Milestonesforthenext6--12months
Spring2015
April
-April25th–‘HomefortheWeekend’event
-Createandposteventmediacontent
May
-May15th–‘BaconandBeats’event
-Createandposteventmediacontent
-Refinebusinessplanandsecureadditionalinvestment
June
-’ReleaseYourself’NYCeventsponsorshipthroughdesignandcreationofeventposter
-Finishwebsiteandcreatesocialmediastrategy/plan
-Designandordermerchandise
-Businesscards,lighters,stickers,bandanas,functionalmerchandise
-Preparetospreadthewordatfestivals,showsandotherevents
-CreateMCflagtobringtoeventsandotherfestivalsforavisualrepresentationofthe
Caravan’spresence
July- August -Grassrootsmarketingatfestivals
18
-Begintoproducemediajournalism Fall2015
-CapitalizeonfreshmanorientationsatDrexel,Temple,andPennState
-BeginplanningforNightMarketatTheArdmoreMusicHall
-Beginfilmingdocumentaryonhostingevents
Winter2016
-Hostindoorevents–NightMarketinFebruary/March
-Createoriginalvideocontent–usefootagefromdocumentaryforshort,engagingvideos
Spring2016
-StarttoexpandthebrandgeographicallywitheventsinNewYorkCity,WashingtonDC,and
RutgersUniversity
Summer2016
-Takethebrandacrossthecountryandintroducethetouringcaravanconceptonasmall
scale
-Host‘spontaneous’performancesandpartiesinparkcampgroundsandhouses
-Tapintopre-existingfanbasesofmajoractslikePrettyLightstofindindividuals
around thecountrywho aresupportiveand alreadyengaged in theirlocalmusic
communities
Fall2016andbeyond
-ContinuetomarkettocollegesaggressivelyoutsidePhiladelphia
-Execute‘popup’eventsaroundthecountryandcreatethetruetouringfestivalcaravan.
Bringmusicians,vendors,andfoodtrucksalongforacaravanacrossthewholecountry.
-Securebigger-namebrandsponsorswithanationalpresencetohelpfundtheU.S.Caravan
-PromoteafulllineofmerchandiseandMCbeer
-Produceaprofessionalvideoseriesandlicenseittoamajoroutlet
Revenue Model
SinceMCCisabusinessthatencompassesmultipletypesofmediacontent,merchandising,andevent
production,thefollowingrevenuemodelsapply:
CommerceandRetail
MCCwillsellbrandmerchandiseateventsandonthecompany’swebsite,aswellasthroughdigitalretailers
whohavefollowingsindifferentpartsofthecountry.Eachpartyinthetransaction-MagicCaravan,the
retailer,andtheoriginalartistofthedesign–willeachreceiveapercentageofsalesrevenuefromsuchitems.
Atevents,MCCwillselldrinksandfoodatappropriatepricesinrelationtowhattheseitemsoriginallycost.
Advertising
Advertisingiskeyingettingthewordoutaboutevents,artists,mediacontent,merchandise,andmore.MCC
willutilizeitspresenceintheartisticcommunitytodemonstrateadvertisingvalueandattractpotentialthird
partyadvertisers.MCCwillseeklocalbusinessesandbrandsthataudiencemembersfollowinordertocreate
meaningfulpartnershipsandsponsorshipsforevents.
Licensing
MCCwilluselicensingasameanstodistributemediacontentacrosstheboard,especiallythroughstreaming.
Theselicensescanbelimitedbytime,territory,andtypesofcontent.
19
Thefollowingtablesforthatweintendtodeliver$10,000insalesthefirstyear.Thiswillincreaseby206.1%
from2015-2016and215%from2016-2017
YearlySalesForecast
$45,000
$40,000
Amount
$35,000
$25,000
Advertising
Pins
$20,000
Lighters
$15,000
T---Shirts
$10,000
Events
$30,000
$5,000
$0
2015
2017
2016
Year
20
YearlySalesForecast
2015
2017
2016
UnitSales
EventSales–FoodandBeverage
1,000
1,400
MerchandiseSales
2,100
T-Shirts
150
270
432
Lighters
200
320
512
Pins
100
180
288
2
7
14
1452
2177
3346
Advertising/Licensing
TotalUnitSales
UnitPrices
Events–AverageFoodandBeverage
$6.00
$7.50
Merchandise
$9.75
T-Shirts
$15.00
$20.00
$25.00
Lighters
$2.00
$3.00
$4.00
Pins
$12.00
$15.00
$20.00
$75.00
$150.00
$375.00
Advertising/Licensing
Sales
$6,000.00
Events–FoodandBeverage
Merchandise
$10,500.00
T-Shirts
$20,475.00
$2,250.00
$5,400.00
$10,800.00
Lighters
$400.00
$960.00
$2,048.00
Pins
$1,200.00
$2,700.00
$5,760.00
$150.00
$1,050.00
$5,250.00
TotalSales
$10,000.00
$20,610.00
$44,333.00
DirectUnitCosts
Advertising/Licensing
$2.50
Events–FoodandBeverage
Merchandise
Advertising/Licensing
DirectCostofSales
$3.00
$3.60
T-Shirts
$5.00
$7.50
$11.25
Lighters
$1.00
$1.50
$2.10
Pins
$3.00
$3.75
$5.25
$37.50
$75.00
$187.50
21
Events–FoodandBeverage $2,500.00
$4,200.00
$7,560.00
T-Shirts
$750.00
$2,025.00
$4,860.00
Lighters
$200.00
$480.00
$1,075.20
Pins
$300.00
$675.00
$1,512.00
$75.00
$525.00
$2,625.00
$3,825.00
$7,905.00
$17,632.20
Merchandise
Advertising/Licensing
SubtotalDirectCOS
Financials
Financial Projections – 2 years
Thefinancialprojectionsforthisplanarepresentedinthetablesandchartsofthefollowingsubtopics.
ImportantAssumptions
Thefollowingtablepresentstheassumptionsusedinthefinancialcalculationsofthebusinessplan.
GeneralAssumptions
2015
1
10%
10%
25%
PlanMonth
CurrentInterestRate
Long-Term Interest Rate
TaxRate
2016
2
10%
10%
25%
2017
3
10%
10%
25%
Projected Profit and Loss
ThefollowingtableandchartwillshowtheprojectedprofitandlossforMagicCaravan.
ProfitMonthly(2015)
$250.00
$200.00
Amount
$150.00
$100.00
$50.00
$0.00
($50.00)
($100.00)
Mar AprMay JunJul Aug SepOct Nov DecJan Feb
($150.00)
($200.00)
($250.00)
Month
22
ProfitYearly
$12,000.00
Amount
$10,000.00
$8,000.00
$6,000.00
$4,000.00
Year
$2,000.00
$0.00
1
3
2
Year
Pro Forma Profit Loss
Year 1 (2015)
Sales
Cost of Goods Sold
$20,610.00
$3,825.00
38.25%
$7,905.00
38.36%
$6,175.00
61.75%
% of Sales
Operating Expenses
Sales & Marketing Expenses
$17,632.20 39.77% $26,700.80
60.23% $839.50
$467.88
$44,333.00
$839.50
$467.88
Note
Year 3 (2017)
$12,705.00
61.64%
$839.50
Research & Development
Media Management Tools
$10,000.00
% of Sales
Gross Profit
Year 2 (2016)
$467.88
General & Administrative
Stipend
Supplies
Production Costs (events)
Repair and Maintenance
Event Insurance
$1,200.00
$240.00
$2,000.00
$30.00
$1,080.00
$2,400.00
$312.00
$2,200.00
$39.00
$1,404.00
$0.00
$0.00
$6,600.00
$421.20 $2,420.00 $52.65 $1,895.40
Depreciation Expense
23
$0.00
1
2
Total Operating Expenses % of Sales
Operating Income (EBIT)
$5,857.38
58.57%
$7,662.38
37.18%
$12,696.63
28.64%
$317.62
$5,042.62
$14,004.17
$0.00
$0.00
$0.00
$47.64
$31.76
$756.39
$504.26
$2,100.63
$1,400.42
$238.22
2.38%
$3,781.97
18.35%
$10,503.13
23.69%
Interest Expense
Taxes
Fed Tax (15%)
PA Tax (10%)
Net Income
% of Sales
Assumptions:
1) Company is still in start-up / growth phase. Will pay certain members of 'management team' each $50/month
during Y1 and the others will work for a share in company equity- not a fulltime job. Increases by Y2 and again
by Y3.
2) General liability outdoor event insurance
Month
24
Feb
Jan
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
GrossMargin
Apr
$900.00
$800.00
$700.00
$600.00
$500.00
$400.00
$300.00
$200.00
$100.00
$0.00
Mar
Amount
GrossMarginMonthly(2015)
Projected Cash Flow
Thefollowingtableandchartaretheprojectedcashflowfrom2015-2017.
ProjectedCashFlow(2015)
$3,500.00
$3,000.00
Amount
$2,500.00
$2,000.00
$1,500.00
NetCashFlow
$1,000.00
CashBalance
$500.00
Jan
Feb
Dec
Nov
Oct
Sep
Aug
Jul
Jun
Apr
May
($500.00)
Mar
$0.00
Month
Pro Forma Cash Flow
2015
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
2016
$18,549.00
$1,889.25
$20,438.25
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$9,906.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$20,438.25
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$43,963.56
$1,200.00
$8,482.38
$39,899.70
$4,063.86
$43,963.56
2017
$9,000.00
$906.00
$9,906.00
25
$2,400.00
$13,167.38
$6,600.00
$23,728.83
Subtotal Spent on Operations
$9,682.38
$15,567.38
$30,328.83
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$9,682.38
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$15,567.38
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$30,328.83
$223.62
$4,870.87
$13,634.73
$3,123.62
$7,994.49
$21,629.22
Net Cash Flow
Cash Balance
26
Projected Balance Sheet
Thefollowingistheprojectedbalancesheetfrom2015-2017.
Pro Forma Balance
Sheet
2015
2016
2017
Assets
Current Assets
Cash
Accounts Receivables
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capitol
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-Term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$3,123.62
$94.00
$650.00
$0.00
$3,867.62
$1,300.00
$0.00
$1,300.00
$5,167.62
$21,629.22
$635.19
$650.00
$0.00
$22,914.41
$1,300.00
$0.00
$1,300.00
$10,210.24
$1,300.00
$0.00
$1,300.00
$24,214.41
($3,825.00)
$0.00
$0.00
($3,825.00)
$0.00
($3,825.00)
$5,000.00
$800.00
$3,192.62
$8,992.62
$5,167.62
$8,992.62
Appendices
Financialdetailsandsupportinginformation
$7,994.49
$265.75
$650.00
$0.00
$8,910.24
27
($11,730.00)
$0.00
$0.00
($11,730.00)
$0.00
($11,730.00)
$5,000.00
$800.00
$16,140.24
$21,940.24
$10,210.24
$21,940.24
($29,362.20)
$0.00
$0.00
($29,362.20)
$0.00
($29,362.20)
$5,000.00
$800.00
$47,776.61
$53,576.61
$24,214.41
$53,576.61