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A Sample Music Store Business Plan Template

Are you about starting a music store? If YES, here is a complete sample music store business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a music store. We also took it further by analyzing and drafting a sample music store marketing plan template backed up by actionable guerrilla marketing ideas for music stores. So let’s proceed to the business planning section.

Why Start a Music Store Business?

Music has become a universal thing in the world. Good music on the other hand is something that has continued to gain more awareness and acceptance, as the time goes by. For that reason, you may quite as well agree with me that there are a lot of folks who would stop at nothing in purchasing good music.

Over the years we have come to know several distribution channels (online and offline) through which musicians and promoters get their tunes sold. Whilst, some have proved effective over the years, yet others who haven’t been too lucky with the ways their music have done in the market only have tales of disappointments to tell as they have failed to be able to recover the investments that have made.

In recent times, and with major advancements springing up as the world goes global, we have come to see that other viable means of making money whilst selling music has evolved. One of such avenues is through the iTunes.  What is iTunes all about?  ITunes is one of the most populous music stores in the whole world. It commenced its digital music revolution and have since recorded and made maximum impact

This is no wonder that it has been said that any music that doesn’t find itself on iTunes, it might just be missing out on over seventy percent of the entire digital music market place. Consequently, enough of reeling out the goodies that you stand to gain on iTunes. Let us talk about how you too can begin to make money on iTunes selling music.

If you have decided to start open a music store, then you must make sure that you carry out thorough feasibility studies and also market survey. This will enable you properly locate the business in a community or city with the right demography; a location that can readily accept your products. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business.

Below is a sample music store business plan that will help you successfully write yours with little or no stress;

A Sample Music Store Business Plan Template

  • Industry Overview

Operators in the Music Stores industry primarily retail prerecorded music in soft and hard copies as audio and videotapes, compact discs (CDs), digital video discs (DVDs) and phonograph records. The industry includes both online and offline music stores.

The trend in the Music Stores industry shows that continued shifts in consumer preferences and competition from large discount and digital music retailers have increased consumer demand for the Music Stores industry. In addition, with growing accessibility to high-speed internet, music streaming and less expensive CD-burning hardware, album sales have declined significantly over the last half a decade.

Despite the fact that consumer sentiment is expected to improve going forward, this industry will fail to experience revenue growth. Consumers who are accustomed to digital music are not likely to return to making regular purchases at bricks and mortar music stores.

Statistics has it that the global revenue of the music industry is estimated at 15 billion U.S. dollars in 2013, and that is about the lowest revenue recorded since 2002; of course it is an indication that the record label industry need to become more creative and leverage on the changing tides in the world of technology.

Even the strong growth in streaming revenues was not enough to stop the music industry globally from experiencing income dropping below US $15bn for the first time in recent years in 2014.

The Music Stores industry is indeed a very large industry and pretty much thriving in all the parts of the world. Statistics has it that in the United States of America alone, there are about 3,959 legally registered and licensed music stores (both online and offline)scattered all across the United States responsible for directly employing about 16,581 employees and the industry rakes in a whooping sum of $2 billion annually.

It is important to state that, the industry is expected to experience – 7.3 percent growth within 2010 and 2016. Trans world and iTunes have the lion share in the global market for music, but no single operator has control over the pricing trend, advertising trend, distribution model or customer loyalty et al in the Industry.

The real start- up costs for music stores are low because they require relatively little initial capital outside of renting or buying a location, purchasing musical products and games, computer, internet facility and if desired, security and sound systems. Although the list of what is needed to launch a music store business may be more, but they are low enough to permit non – employers to open a music store with minimal difficulty.

Competition has become the main and perhaps the only barrier to entry into this industry. Just as most retailers face increasing competition from online sales, the Music Stores industry faces the added threat of their goods (music and games) being offered for free online

Over and above, the music store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner like the average mom and pop business with no online presence or you can choose to start on a large scale operating a one stop online and offline music store with different genre of music from different musical artist all across the globe.

Music Store Business Plan – Executive Summary

Penny Wise® Music Store, Inc. is a standard and licensed music store that will be located in a centralized area between a residential neighborhood and a busy business district in downtown Los Angeles – California.  We have been able to secure a well – located store facility with a long term lease agreement that is favorable to us.

We conducted thorough feasibility studies and market survey and we came to the conclusion that Los Angeles is the right location to open our music store.

We are in the music stores line of business to make profits at the same to give our customers value for their money and time whenever they patronize our products. We want to give people who visit our music store the opportunity to choose from a large collection of different genre of music and videos both in hard and soft copies. We will engage in retailing prerecorded music, retailing prerecorded videos, retailing audio book and other related merchandise.

We are aware that there are several small music stores and large music stores all around Los Angeles, which is why we spent time and resources to conduct thorough feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.

We ensured that our facility is easy to locate and our outlet is well secured and equipped with the various payment options available in the U.S. Beyond retailing quality and affordable music and video game in our music store (both offline and online), we will ensure that our customer care is second to none in the whole of Los Angeles – California.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied and get what they are looking for whenever they visit our book store and also to become our loyal customers and ambassadors in and around our neighborhood.

At Penny Wise® Music Store, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by delivering excellent and neat jobs and also meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. We will ensure that we get our customers involved in the selection of music and video games that will be in our store and also when making some business decisions that will directly or indirectly affect them.

Penny Wise® Music Store, Inc. is owned by Stanley Mosley and his immediate family members. Stanley Mosley has successfully managed several retail stores and online stores both in Los Angeles and New York prior to opening Penny Wise® Music Store, Inc. Stanley Mosley has a Degree in Business Administration and he will run the business alongside her immediate family members.

  • Our product

Penny Wise® Music Store, Inc. is going to operate a standard and registered music store that will retail a wide genre of music and video games (soft copies and hard copies) from both locally and international music artists just like any other registered and standard music store in the United States and in any part of the world.

We are in the music stores industry to make profits and we are going to do all that is permitted by the law in the United States of America to achieve of business goal and objectives. These are some of the products that we will retail in our music store;

  • Retailing prerecorded music (soft copies and hard copies)
  • Retailing prerecorded videos (soft copies and hard copies)
  • Retailing audio books (soft copies and hard copies)
  • Retailing of video games (soft copies and hard copies)

Our Vision Statement

Our vision is to establish a one stop music store in Los Angeles – California and in other cities in the United States of America.

  • Our Mission Statement

Our mission is to establish a music store business that will make available a wide genre of music and video games (both soft copies and hard copies) from musical artists all across the globe at affordable prices to the residence of Los Angeles – California and the online community.

  • Our Business Structure

Penny Wise® Music Store, Inc. do not intend to start a music store business like the usual mom and pop business around the street corner; our intention of starting a music store business is to build a standard music store that will be a one – stop music shop which is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more especially when we start selling our franchise or running chains of music stores. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Store Manager
  • Merchandize Manager
  • Sales and Marketing Manager
  • Information Technologist
  • Accountants / Cashiers
  • Cleaners

Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communiqué, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Store Manager:

  • Responsible for managing the daily activities in the store
  • Ensure that the store facility is in tip top shape and conducive enough to welcome customers
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Interfaces with third – party providers (vendors)
  • Controls the sales floor inventory
  • Ensures that goods and products are properly arranged
  • Supervises the entire sales staff and workforce
  • Handles any other duty as assigned by the CEO

Merchandize Manager

  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure a wide genre of music, audio books and video games are available in our store
  • Responsible for the purchase of music, audio books and video games et al for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Information Technologist

  • Manages the organization website
  • Manages the organization online music store of the business
  • Responsible for installing and maintenance of computer software and hardware for the organization
  • Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manages the organization’s CCTV
  • Handles any other technological and IT related duties.

Accountant / Cashier

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distribute mails in the organization
  • Handles any other duties as assigned by the line manager

Cleaners:

  • Responsible for cleaning the store facility at all times
  • Ensure that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the store facility
  • Handle any other duty as assigned by the store manager.

Music Store Business Plan – SWOT Analysis

Our intention of starting just one outlet of our music store in Los Angeles – California is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other chains of music stores all over California and perhaps also sell franchise through the United States of America and Canada.

We are quite aware that there are several music stores all over Los Angeles and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Penny Wise® Music Store, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Penny Wise® Music Store, Inc.;

  • Strength:

Our location, the business model we will be operating on (one stop physical store and online music store), varieties of payment options, wide genre of music from local and international musical artists and our excellent customer service culture will definitely count as a strong strength for Penny Wise® Music Store, Inc. So also our management team members are people who have what it takes to grow a business from start – up to profitability with a record time.

  • Weakness:

A major weakness that may count against us is the fact that we are a new music store in Los Angeles and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.

  • Opportunities:

The fact that we are going to be operating our music store in one of the busiest residential estates with the right demographic composition in Los Angeles – California and also on online platform provides us with unlimited opportunities to sell our items to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential customers / residence within the location where our music store will be located will be looking for when they visit our music store. We are well positioned to take on the opportunities that will come our way.

  • Threat:

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new music store in same location where ours is located.

Music Store Business Plan – MARKET ANALYSIS

  • Market Trends

One notable trend in the retailing cum music store industry is the ever changing consumer behavior and of course increasing competition from e-commerce and alternative retailers like mass merchandisers et al. This trend is part of what is responsible for the decline in the revenue generated by bricks and mortar music stores without online platform.

Although these trends are forecast to continue over the next 5 years, some music stores will benefit from increasing demand for new technologies, such as online music stores / soft copies. Beyond every reasonable doubt, the music store companies that can successfully flow with the trend and keep up with consumer and technology trends will definitely fare well in the coming years, while the continued decline in bricks and mortar music store will keep the overall industry in steady decline.

If you keep tab with music store business and retailing business generally, you would have noticed that It is now a common phenomenon for music stores to leverage on technology to effectively predict consumer demand patterns and to strategically position their store to meet their needs; in essence, the use of technology helps retailers to maximize supply chain efficiency. No doubt data collected from customers goes a long way to help retail stores serve them better.

Lastly, a major trend in the Music Stores industry shows that continued shifts in consumer preferences and competition from large discount and digital music retailers have increased consumer demand for the Music Stores industry. In addition, with growing accessibility to high-speed internet, music streaming and less expensive CD-burning hardware, album sales have declined significantly over the last half a decade.

Despite the fact that consumer sentiment is expected to improve going forward, this industry will fail to experience revenue growth. Consumers who are accustomed to digital music are not likely to return to making regular purchases at bricks and mortar music stores.

  • Our Target Market

When it comes to selling music, audio books, videos and video games, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in the locations where we intend opening our music store and the online community. One thing is certain, we will ensure that we have a wide gene of music videos and audio books in our music store at all times.

In view of that, we have positioned our music store to service the residence of Los Angeles – California and the online community. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail music, video games and audio books to the following groups of people;

  • Corporate Executives
  • Government Officials
  • Business People
  • Celebrities
  • Military Men and Women
  • Sports Men and Women Students
  • Tourists
  • Every adult in the neighborhood where our music store will be located.
  • Online community

Our Competitive Advantage

Penny Wise® Music Store, Inc. is launching a standard and registered music store that will indeed become the preferred choice for residence of Los Angeles – California and online community. Our music store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Los Angeles and few meters away from a busy school district. We have enough parking space that can accommodate well over 15 cars per time.

One thing is certain; we will ensure that we have a wide genre of music, video games and audio books both in hard copies and soft copies from various musical artists all across the globe available in our store at all times. It will be difficult for customers to visit our store and not see the genre of music, video game or audio book that they are looking for. One of our business goals is to make Penny Wise® Music Store, Inc. a one stop music store.

Our highly experienced and qualified management team, customer service culture, online store, various payment options and highly secured facility with enough packing space will also serve as a competitive advantage for us.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups music store companies in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

Music Store Business Plan – SALES AND MARKETING STRATEGY

  • Sources of Income

Penny Wise® Music Store, Inc. is established with the aim of maximizing profits in the music stores industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of music products and related products to a wide range of customers.

Penny Wise® Music Store, Inc. will generate income by retailing the following items;

  • Retailing prerecorded music (soft copies and hard copies)
  • Retailing prerecorded videos (soft copies and hard copies)
  • Retailing audio books (soft copies and hard copies)
  • Retailing of video games (soft copies and hard copies)

Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field.

One thing is common with music store business, the larger a music store the larger the numbers of customers that will patronize them. Although we may not be as large as the biggest music store in the United States, but we will ensure that within our capacity we make available a wide genre of music, video games and audio books from different musical artists all across the globe in our store.

We are well positioned to take on the available market in Los Angeles – California and the online community and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the music stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – California.

Below are the sales projections for Penny Wise® Music Store, Inc., it is based on the location of our business and other factors as it relates to online and offline music store start – ups in the United States;

  • First Fiscal Year-: $120,000
  • Second Fiscal Year-: $350,000
  • Third Fiscal Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Penny Wise® Music Store, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Los Angeles – California and the online community. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the music store industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Los Angeles – California and online community.

In other to continue to be in business and grow, we must continue to sell the products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Penny Wise® Music Store, Inc. will adopt the following sales and marketing approach to win customers over;

  • Introduce our music store by sending introductory letters to schools, residence, business owners, religious and corporate organizations in and around Los Angeles – California
  • Open our music store with an open house party for people in the community
  • Advertise our business in community based newspapers, local TV and radio stations
  • List our business on yellow pages’ ads (local directories)
  • Leverage on the internet to promote our business
  • Engage in direct marketing
  • Leverage on word of mouth marketing (referrals)
  • Make use of attractive hand bills to create awareness and also to give direction to our store
  • Position our signage / flexi banners at strategic places around Los Angeles
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on road shows within our neighborhood to create awareness and also sell our products.

Music Store Business Plan – Publicity and Advertising Strategy

Despite the fact that our music store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our book store.

Penny Wise® Music Store, Inc. has a long term plan of opening chains of music stores in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Los Angeles – California before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the public. Here are the platforms we intend leveraging on to promote and advertise Aunty Clara Book Store™;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations all around Los Angeles – California
  • Engage in road show from time to time
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where our music store is located.
  • Advertise our business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

Our Pricing Strategy

Pricing is one of the key factors that give leverage to music stores and retailing business generally, it is normal for consumers to go to places (music stores) where they can get music, audio books and video games at cheaper price which is why big player in the music stores industry like attract loads of consumers.

We know we don’t have the capacity to compete with other bigger music store, but we will ensure that the prices of all the items (music, audio books and video games) that are available in our music store are competitive with what is obtainable amongst music stores within our level and in our location.

  • Payment Options

The payment policy adopted by Penny Wise® Music Store, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Penny Wise® Music Store, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.

  • Start – Up Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a music store business; it might differ in other countries due to the value of their money.

When it comes to starting a music store business the major areas that you look towards spending the bulk of your cash is in of course renting or leasing a standard store facility. Aside from that, you are not expected to spend much except for paying of your employees, creating a user – friendly and easy to download website and then stocking of your store different genre of music, audio books and video games.

These are the key areas where we will spend our start – up capital;

  • The total fee for registering the business in the United States of America – $750.
  • The legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software applications) – $1,300.
  • Marketing promotion expenses for the grand opening of Penny Wise® Music Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • The cost for hiring Consultant – $2,500.
  • The cost for Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
  • The cost for Shop remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (stocking with a wide genre of music, audio books and video games in hard and soft copies from different musical artists all across the globe) – $70,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $5,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of launching a website and online store – $800
  • The cost for our opening party – $7,000
  • Miscellaneous – $10,000

We would need an estimate of $250,000 to successfully set up our music store in Los Angeles – California. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Penny Wise® Music Store, Inc.

Penny Wise® Music Store, Inc. is a family business that is solely owned and financed by Stanley Mosley and his immediate family members. We do not intend to welcome any external business partners, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $75,000 and soft loan from family members $25,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

Music Store Business Plan – Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Penny Wise® Music Store, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our music, audio books, video games and other book related merchandize a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Penny Wise® Music Store, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the store: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of products (music, audio books and video games et al)that will be available in our convenience store: Completed
  • Establishing business relationship with vendors – wholesale suppliers of various genre of music, audio books and video games: In Progress
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