Music Festival Business Plan [Sample Template]

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Are you about starting a music festival company? If YES, here is a detailed sample music festival business plan template & FREE feasibility report.

If you are a good event organizer and you have what it takes to organize and promote events that people will be willing to pay for, then you should consider starting a music festival business. This is one business that is thriving in the united states of America and in most countries of the world.

As a music festival organizer, you are expected to work on behalf of music artists and promoters in order to successfully organize paid musical festivals. Most music festivals are organized for the purpose of making profit because the music festival organizer spends a lot of money to bring in the musicians, rent the venue, and pay their team members.

They also have to spend a lot of money in marketing to boost ticket sales. At the end of the day, the most important thing is for them to achieve their primary objective and that is profit.

If you have decided to start a music festival business, you are expected to sit down and map out strategies on how to a raise startup capital, run the business, promote the business as well as how to make profits. Here is a sample music festival business plan template that can help you to start yours as soon as you can.

A Sample Music Festival Business Plan Template

1. Industry Overview

Music festival business is grouped under the Concert & Event Promotion industry and players in this industry create, manage and promote live performances and events, ranging from concerts and theater performances to state fairs and air shows.

Some promoters lease space from stadia, arena and theater owners, while others own and operate venues. The origin of music festivals date back to ancient Greece, where such events often involved competitions in music, arts and sports. Modern music festivals in the U.S. grew out of the establishment and ethos of Woodstock.

Though it was not the first event of its kind (the Newport Folk and Jazz Festivals, Milwaukee’s Summerfest and the Monterey Pop Festival predate Woodstock), the 1969 event holds a mythical place within American pop-cultural history.

A 2019 Deloitte survey of millennials—a group that makes up at least 45% of the 32 million people who attend music festivals—finds that 57% of respondents said they prioritized travel and seeing the world over owning a home. For artists, appearing at music festivals is an easier way to make money than depending on record sales or long tours.

A recent report published by IBISWorld shows that the concert and event promotion industry’s success has been the result of continued demand for live entertainment and its value to US consumers. Over the five years to 2019, industry revenue is expected to grow at an annualized rate of 4.6 percent to $33.3 billion, including an increase of 2.3 percent in 2019 alone.

The current period is marked by the growing success of music festivals and rising ticket sales. Billboard Magazine estimates that over 32.0 million Americans attended at least one festival in 2015. These trends, in conjunction with growing per capita disposable income, have fueled industry growth.

Statistics has it that in the United States of America alone, the concert and event promotion industry generate over $33 billion annually from more than 73,811 registered and licensed concert and event promotion companies (music festival organizers inclusive).

The industry is responsible for the employment of over 263,969 people. Experts project the music groups and artist industry to grow at a 4.6 percent annual rate between 2014 and 2019. Please note that the companies holding the largest market share in Concert & Event Promotion in the US are Live Nation Entertainment Inc. and The Anschutz Corporation.

The concert and event promotion industry cannot be said to be oversaturated despite the fact that the entry bar for starting such business is dependent on the sponsors. As a music festival organizer, if you are creative and hardworking, you can successfully create your own steady market. It is safe to say the industry is still growing especially with the advent of new social media platforms.

Some of the factors that encourage entrepreneurs to start their own music festival organizing business could be that the business is easy to set up, the startup capital is affordable and the running cost can be put at the minimum level; you can actually start your own music festival business from the comfort of your home. All you need to do is to create an office somewhere in your house.

One good thing about a music festival organizing business is that even if you decided to start it in the United States of America, your market will not be restricted to entertainers or musical artists in the U.S.; the world will be your target market.

Many thanks to the internet that has made the world a global village. All you need to do is to strategically position your music festival organizing business on the internet and you will be amazed at the rate international musical artists from all parts of the world would want to perform in your musical festival event.

2. Executive Summary

One Nation® Music Festival, Inc. is a concert and event promotion company with strong niche in organizing world – class music festivals within the United States.

The company will be based in East Rutherford – New Jersey. One Nation® Music Festival, Inc. is a client-focused and result driven concert and event promotion company that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

At One Nation® Music Festival, Inc., our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are experienced in a wide variety of concert and event promotions.

One Nation® Music Festival, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. Our plan is to position the business to become the leading brand in the industry, and to be amongst the top 20 concert and event promotion companies in the United States of America within our first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that East Rutherford, New Jersey is the right place to launch our business before spreading to other parts of The United States.

One Nation® Music Festival, Inc. is founded by Mr. Tony Angelo and his wife Tammy Angelo. The organization will be managed by both of them since they both have tangible experience working at various capacities within the entertainment and event promotion industry in the United States.

As a matter of fact, Mr. Tony Angelo is a notable figure in the entertainment industry in the United States and the wife had worked with the team responsible for organizing the Grammy Awards. Mr. Tony Angelo graduated from both University of California – Berkley (First Degree), and University of Harvard (MSc.).

3. Our Products and Services

One Nation® Music Festival, Inc. is going to offer varieties of services within the concert and event promotion and entertainment industry in the United States of America. Our intention of starting our concert and event promotion company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our ambition. Our business offerings are listed below;

Organizing music festival at community, city, state and international stages
Managing venues (e.g. arenas, amphitheaters, clubs and stadiums)
Booking talent, including musicians and performers, for events
Promoting and marketing events
Organizing logistics for events (e.g. concerts, tours, shows, festivals and pageants)

4. Our Mission and Vision Statement

Our vision is to build a concert and event promotion brand that will attract the highest number of attendees in any music concert not just in East Rutherford – New Jersey, but throughout the United States of America.
Our mission is to provide professional concert and event promotion services that will assist music artists, businesses and non-profit organizations in maximizing their talent.
We are to position the business to become the leading brand in the concert and event promotion business in the whole of New Jersey, and also to be amongst the top 20 concert and event promotion companies in the United States of America within the first 10 years of operation.

Our Business Structure

One Nation® Music Festival, Inc. will build a solid business structure that can support the growth of our business. The fact that we want to become one of the leading concert companies in the United States makes it highly necessary to deliberately build a well – structured business from the onset.

We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. Below is the business structure that we will build One Nation® Music Festival, Inc.;

Chief Executive Officer
Entertainment Lawyer/Legal Secretary
Concert and Event Promotion Manager
Admin and HR Manager
Marketing Executive
Accountant
Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

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
Creates, communicates, and implements 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
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Reports to the board

Entertainment Lawyer/Legal Secretary

Responsible for drawing up contracts and other legal documents for the company
Advise artists and the organization accordingly before producing their music album or singles
Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.

Concert and Event Promotion Manager

Responsible for interviewing and hiring vendors, selecting and ordering materials, negotiating rates, coordinating the sequence of events, following up with guests and vendors and producing full-scale events.
Plan, design and produce music festival events while managing all project delivery elements within time limits
Liaise with artists and sponsors to identify their needs and to ensure customer satisfaction
Conduct market research, gather information and negotiate contracts prior to closing any deals
Provide feedback and periodic reports to stakeholders
Propose ideas to improve provided services and event quality
Organize facilities and manage all event’s details such as decor, catering, entertainment, transportation, location, invitee list, special guests, equipment, promotional material etc.
Ensure compliance with insurance, legal, health and safety obligations
Specify staff requirements and coordinate their activities
Cooperate with marketing and PR to promote and publicize event
Proactively handle any arising issues and troubleshoot any emerging problems on the event day
Conduct pre- and post – event evaluations and report on outcomes
Research market, identify event opportunities and generate interest
Proactively handle any arising issues and troubleshoot any emerging problems on the event day

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Defining job positions for recruitment and managing interviewing process
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversee the smooth running of the daily office activities.

Marketing Executive

Identify, prioritize, and reach out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Writing winning proposal documents, negotiate fees and rates in line with company policy
Responsible for handling business research, marker surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the company

Accountant

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

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 when they make enquiries

6. SWOT Analysis

One Nation® Music Festival, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured concert and event promotion company that can favorably compete in the industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for One Nation® Music Festival, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of One Nation® Music Festival, Inc.;

Strength:

Our core strength lies in the power of our team and the location of our business. We have a team that can attract first – class music artists from any part of the world; a team that can effectively manage music artists. We are well positioned and we know we will attract loads of sponsors and attendees in any location we choose to organize our music festival.

Weakness:

As a new talent management agency, it might take some time for our organization to break into the market and attract some good music artists to perform in our festival; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

Opportunities:

Household disposable income, which is affected by changes in interest rates, wages, taxes and employment, can influence demand for and expenditure on performing arts events held by Concert and Event Promotion industry operators.

Since industry events are discretionary, lower per capita disposable income results in weaker demand. Per capita disposable income is expected to increase in 2019, representing a potential opportunity for the industry.

Threat:

It is worthy to note that many nonprofit establishments in this industry rely on federal funding, particularly grants from the National Endowment for the Arts, an independent agency established by Congress in 1965 to provide funding and support for projects deemed to have significant artistic merit.

Nonprofit establishments can put on more shows if they are given a higher amount of government funding. Federal funding for creative arts is expected to decrease in 2019, representing a potential threat to the industry.

7. MARKET ANALYSIS

Market Trends

The concert and event promotion and entertainment industry is in a continuous state of evolution and as such, ground breaking strategies and ideas that are once highly successful are no longer as productive as they were in times past.

Close observation of the trend in the industry reveals that the past few years has seen the rise and proliferation of social media and new tech tools. The trend also extends to increased attention paid to engagement and new market segments, adopting eco-friendly measures and sustainability when planning events, and of course increase in demands from event sponsors.

As a matter of fact, social media has now become one of the most important tools music festival promoters/organizers leverage on to disseminate information about their events, interact with attendees, solicit feedback, and create year-round engagement with their target audience.

When we talk about the business side, music festivals have become more streamlined by the advent of big music promoters over the last decade. Putting on a festival is a challenge, between having to pay artists enough to secure their performances, needing to sell a certain number of tickets in order to be successful, the additional costs of insurance and the risks of bad weather.

Large corporate live music promoters, such as Live Nation or AEG Live, have, in recent years, acquired hefty controlling stakes in some of the country’s biggest festivals. Their organizational capacity helps to manage ticketing and other factors that come into play in organizing a festival.

After purchasing a controlling interest in Bonnaroo in 2015, Live Nation this year bought the remaining stake to gain total control of the festival. Live Nation also controls, or partially controls, festivals like Lollapalooza and Austin City Limits, among several dozen others.

Lastly, music itself has changed, thus making festivals a bigger attraction for listeners. As streaming becomes one of the most popular ways to listen to music, sales of tickets and merchandise make up the bulk of fans’ expenditures on music.

8. Our Target Market

As an all – round concert and event promotion outfit, One Nation® Music Festival, Inc. organizes a wide range of music festivals hence we are well trained and equipped to services a wide range of clientele.

Our target market cuts across people of different classes and from all walks of life. We are coming into the industry with a business concept that will enable us attract first class music artists. Below is a list of the people and organizations that we have specifically designed our services for;

Blue Chips Companies (Sponsorship)
Corporate Organizations (Sponsorship)
Religious Organizations (Sponsorship)
Music Artists (Performers)
Households / Families (Attendees)
Residents in the locations where we will host our music festival
Tourists

Our Competitive Advantage

We are quite aware that to be highly competitive in the concert, event promotion and entertainment industry means that you should be able to attract first – class music artists and you should be able to meet the expectations of both participants and sponsors.

One Nation® Music Festival, Inc. might be a new entrant into the industry in the United States of America, but the owners of the business are considered gurus. They are highly qualified concert and event promotion professional in the United States.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

One Nation® Music Festival, Inc. is established with the aim of maximizing profits in the concert, event promotion and entertainment industry and we are going to ensure that we do all it takes to attract clients on a regular basis. One Nation® Music Festival, Inc. will generate income by offering the following services;

Organizing music festivals at community, city, state and international stages
Managing venues (e.g. arenas, amphitheaters, clubs and stadiums)
Booking talent, including musicians and performers, for events
Promoting and marketing events
Organizing logistics for events (e.g. concerts, tours, shows, festivals and pageants)

10. Sales Forecast

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of organizing music festival and grow the business and our clientele base beyond East Rutherford to other cities in New Jersey and other states in the U.S.

We have been able to examine the concert and event promotion market, we have analyzed our chances in the industry and we have 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 East Rutherford – New Jersey.

Below are the sales projections for One Nation® Music Festival, Inc., it is based on the location of our business and the wide range of concert and event promotion (music festival) services that we will be offering;

First Fiscal Year (FY1): $250,000
Second Fiscal Year (FY2): $650,000
Third Fiscal Year (FY3): $1.1 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiff competitions amongst concert and event promotion companies in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the marketplace; we want to build a standard concert and event promotion business that will leverage on word of mouth advertisement from satisfied clients.

Our goal is to grow our concert and event promotion company to become one of the top 20 companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the East Rutherford but also in other cities in the United States of America.

One Nation® Music Festival, Inc. is set to make use of the following marketing and sales strategies to attract clients;

Introduce our business by sending introductory letters alongside our brochure to corporate organizations, schools, households, music artists managers and key stake holders in East Rutherford and other cities in New Jersey.
Promptness in bidding for concert and event promotion contracts from the government and other cooperate organizations
Advertise our business in relevant business magazines, newspapers, TV and radio stations
List our business on yellow pages ads (local directories)
Attend relevant international and local expos, seminars, and business fairs et al
Create different packages for different category of sponsors in order to work with their budgets and still deliver quality concert and event promotion (music festivals)
Leverage on the internet to promote our business
Engage direct marketing approach
Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. Below are the platforms we intend to leverage on to promote and advertise One Nation® Music Festival, Inc.;

Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
Sponsor relevant community – based events / programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
Install our Billboards in strategic locations all around East Rutherford – New Jersey.
Distribute our fliers and handbills in target areas
Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

When it comes to pricing for music festivals, it is in two – folds. Firstly, pricing packages for sponsors and secondly prices for attendees (music festival access fee / ticket)

At One Nation® Music Festival, Inc. we will keep our fees below the average market rate for all of our sponsors and attendees by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special sponsorship discounted rates to startups, nonprofits, cooperatives, and small social enterprises who want to sponsor our music festival.

Payment Options

The payment policy adopted by One Nation® Music Festival, 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 One Nation® Music Festival, Inc. will make available to her clients;

Payment via bank transfer
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 clients make payment for sponsorship deals and tickets 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 services.

13. Startup Expenditure (Budget)

Starting a concert and event promotion (music festival) business can be cost effective because, on the average, you are not expected to acquire expensive machines and equipment.

What you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furnish and equip the office, purchase the required software applications, pay bills, promote the business and obtain the appropriate business license and certifications. These are the key areas where we will spend our startup capital on;

The total fee for incorporating the Business in the United States of America – $750.
The budget for basic insurance policy covers, permits and business license – $2,500
The amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $ 5,000
The cost for organizing our first music festival (most venues are paid up front, and they get paid whether the concert is successful or not. The average cost to rent an arena is around $20,000/night while the average cost to rent an amphitheater is around $10,000/night. Smaller clubs cost less, but their capacity is also less.) – $50,000
The cost of launching our official Website – $600
Budget for paying at least one employee for 3 months plus utility bills – $10,000
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need over two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard music festival business in the United States of America.

Generating Funds/Startup Capital for One Nation® Music Festival, Inc.

One Nation® Music Festival, Inc. is a family business that will be owned by Mr. Tony Angelo and his wife Tammy Angelo. They decided to restrict the sourcing of the startup capital for the business to just three major sources. These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals. We are aware of this which is why we have decided to organize a wide range of music festivals and other related services. We know that if we continue to deliver excellent concert and event promotion services, there will be steady flow of income for the organization as a result of attracting sponsors and attendees.

Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members.

In the nearest future, we will explore the options of either selling out franchise or expanding our scope beyond East Rutherford – New Jersey to other major cities in the United States of America. We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.

Check List/Milestone

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank 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
Conducting Feasibility Studies: Completed
Generating part of the startup capital from the founder: Completed
Applications for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with music artists, vendors and key players in the industry: In Progress