Do you want to start a record store and need to write a plan? If YES, here is a detailed sample record store business plan template & FREE feasibility report.

Businesses that are worth going for are businesses that you are certain people would need your services or products regularly. A record store business falls into this category.

Part of what you need to make headway in this business is to ensure that your store is intentionally positioned and you a have good business relationship with record producers and wholesale suppliers of various types of music and videos.

A Sample Record Store Business Plan Template

1. Industry Overview

A record shop or record store is a retail outlet that sells recorded music. In the late 19th century and the early 20th century, record shops only sold gramophone records, but over the 20th century, record shops sold the new formats that were developed, such as eight track tapes, compact cassettes and compact discs (CDs).

Today in the 21st century, record stores sell CDs, vinyl records and in some cases, DVDs of movies, TV shows, cartoons and concerts. Some record stores also sell music-related items such as posters of bands or singers and even clothing and items such as bags and coffee mugs.

A recent report published by IBISWorld shows that over the five years to 2019, sustained shifts in consumer preferences and competition from large discount and online retailers have hampered consumer demand for the Record Stores industry.

Likewise, digital retailers and streaming services have positioned themselves as affordable, convenient alternatives to CDs and DVDs. Streaming services, in particular, have risen in popularity among music and film enthusiasts due to the premium selection of content offered for a monthly fee.

Moving forward, the Record Stores industry is expected to continue its structural descent as on-demand streaming services and digital downloads dominate as preferred entertainment consumption platforms. However, industry revenue is expected to decline at a slower pace as the vinyl record sales rebound.

Renewed interest in vinyl from the college-age demographic has contributed to consecutive growth in vinyl sales over the past decade, and this trend is expected to continue during the outlook period with projected growth in discretionary income.

Statistics has it that in the united states of America alone, there are about 2,390 legally registered and licensed record stores scattered all across the United States responsible for directly employing about 7,531 employees and the industry rakes in a whooping sum of $888 million annually.

It is important to state that, the industry is expected to experience – 10.9 percent growth within 2015 and 2020. Trans World Entertainment Corporation has the lion share of the available market in the United States, but no single operator has control over the pricing trend, advertising trend, distribution model or customer loyalty et al in the Industry.

The real startup costs for record stores are low because they require relatively little initial capital outside of renting or buying a location, purchasing musical products and related products, computer, internet facility and if desired, security and sound systems. Although the list of what is needed to launch a record store business may be more, but they are low enough to permit non – employers to open a record 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 Record Stores industry faces the added threat as their goods (music and videos) are being offered for free online.

The record stores 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, or you can choose to start on a large scale operating a one stop online and offline record store with different genre of music from musical artistes all across the globe.

2. Executive Summary

Jack Brian® Record Store, Inc. is a licensed record 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 store facility with 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 record store.

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

We are aware that there are several record 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. 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.

At Jack Brian® Record 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 meeting our client’s needs completely.

We will ensure that we get our customers involved in the selection of music and related merchandise that will be in our store and also when making some business decisions that will directly or indirectly affect them. Jack Brian® Record Store, Inc. is owned by Jack Brian and his immediate family members.

Jack Brian has successfully managed several retail and online stores both in Los Angeles and New York prior to opening Jack Brian® Record Store, Inc. Jack Brian has a Degree in Business Administration and he will run the business alongside his immediate family members.

3. Our Products and Services

Jack Brian® Record Store, Inc. is going to operate a standard record store that will retail a wide genre of music and related merchandise from both local and international music artistes.

We are in the Record 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 record store;

  • Retailing prerecorded audio and videotapes, Blu-Ray discs and phonographic CDs, vinyl records, DVDs of movies, TV shows, cartoons and concerts.
  • Retailing music-related items such as posters of bands or singers and even clothing and items such as bags and coffee mugs et al
  • Retailing audio books (soft copies and hard copies)
  • Retailing of video games (soft copies and hard copies)

4. Our Mission and Vision Statement

  • Our vision is to establish a one stop record store in Los Angeles – California and in other cities in the United States of America.
  • Our mission is to establish a record store business that will make available a wide genre of music and related merchandise from musical artistes all across the globe at affordable prices to the residents of Los Angeles – California and the online community.

Our Business Structure

Our intention of starting a record store business is to build a standard record store that will be a one-stop music shop which is why we put the right structures 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.

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 record 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
  • Merchandise Manager
  • Information Technologist
  • Accountants/Cashiers
  • Cleaners

5. Job 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
  • 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
  • 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.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Interfaces with third – party suppliers (vendors)
  • Control the sales floor inventory
  • Ensure that goods and products are properly arranged
  • Supervise the entire sales staff and workforce
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Document all customer contact and information
  • Represent the company in strategic meetings
  • Help increase sales and growth for the company

Merchandize Manager

  • Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Help to ensure a wide genre of music, audio books and related merchandizes are available in our store
  • Responsible for the purchase of music, audio books and related merchandizes et al for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors

Information Technologist (Contract)

  • Manage the organization’s website
  • Manage the organization online record store of the business
  • Responsible for installing and maintenance of computer software and hardware for the organization
  • Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manage 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
  • 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
  • Ensuring 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
  • 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 manager

Cleaners:

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

6. SWOT Analysis

Our intention of starting just one outlet of our record 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 stores. We are quite aware that there are several record 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 equipped to confront our threats.

Jack Brian® Record 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 Jack Brian® Record Store, Inc.;

  • Strength:

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

  • Weakness:

A major weakness that may count against us is the fact that we are a new record 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 record 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 products to a large number of people.

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

  • Threat:

That sustained shifts in consumer preferences and competition from large discount and online retailers have hampered consumer demand for the Record Stores industry, and will pose a threat to our business.

With greater accessibility to high-speed internet, streaming and affordable disc-burning hardware, album sales have declined at an annualized rate of 16.0 percent during the five-year period. Another threat that may likely confront us is the arrival of a new record store in same location where ours is located.

7. MARKET ANALYSIS

  • Market Trends

One notable trend in the retailing cum record 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 brick and mortar record stores without online platform.

It is now a common phenomenon for record 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 efficiencies.

No doubt data collected from customers goes a long way to help retail stores figure out consumer preferences. A major trend in the Record Stores industry shows that despite the growth of substitute products, the Record Stores industry’s decline is expected to slow as industry participants transition their businesses.

Record store operators are expected to expand their product offerings beyond mainstream music, movie and TV show merchandise to include products from specialized genres or eras to attract niche consumers. Additionally, music enthusiasts are expected to continue collecting vinyl records over the next five years.

However, the industry will continue to compete with online retailers and streaming services. An expected annualized increase in per capita disposable income will also lead consumers to purchase electronics that are compatible with digital media as the number of broadband connections grow.

8. Our Target Market

When it comes to selling prerecorded audio and videotapes, Blu-Ray discs and phonographic CDs, vinyl records, DVDs of movies, TV shows, cartoons and concerts and related merchandise, 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 reside in the locations where we intend opening our record 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 record store at all times. We are in business to retail our products 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 record store will be located.
  • Online community

competitive advantage

Jack Brian® Record Store, Inc. is launching a standard record store that will indeed become the preferred choice for residents of Los Angeles – California and the online community. Our record 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 over 15 cars per time.

One thing is certain, we will ensure that we have a wide genre of prerecorded audio and videotapes, Blu-Ray discs and phonographic CDs, vinyl records, DVDs of movies, TV shows, cartoons and concerts and related merchandise from various musical artistes 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 or audio book that they are looking for. One of our business goals is to make Jack Brian® Record Store, Inc. a one stop record 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 record 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 objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Jack Brian® Record Store, Inc. is established with the aim of maximizing profits in the Record Stores industry and we are going to ensure that we do all it takes to sell our music products to a wide range of customers. Jack Brian® Record Store, Inc. will generate income by;

  • Retailing prerecorded audio and videotapes, Blu-Ray discs and phonographic CDs, vinyl records, DVDs of movies, TV shows, cartoons and concerts.
  • Retailing music-related items such as posters of bands or singers and even clothing and items such as bags and coffee mugs et al
  • Retailing audio books (soft copies and hard copies)
  • Retailing of video games (soft copies and hard copies)

10. 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 record store businesses, the larger a record store, the larger the number of customers that will patronize them.

Although we may not be as large as the biggest record store in the United States, but we will ensure that within our capacity we make available a wide genre of music, videos and audio books and related merchandise 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 months of operation and grow the business and our clientele base.

We have been able to examine the Record Stores industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Jack Brian® Record Store, Inc., it is based on the location of our business and other factors as it relates to record store startups in the United States;

  • First Fiscal Year (FY1): $120,000
  • Second Fiscal Year (FY2): $250,000
  • Third Fiscal Year (FY3): $350,000

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 there won’t be any major competitor offering same products 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 Jack Brian® Record Store, Inc., we conducted thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents 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 number of customers we want to attract per time.

We hired experts who have good understanding of the record 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 summary, Jack Brian® Record Store, Inc. will adopt the following sales and marketing approach to win customers over;

  • Introduce our record store by sending introductory letters to schools, residents, business owners, religious and corporate organizations in and around Los Angeles – California
  • 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
  • Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

Despite the fact that our record store is well located, we will still go ahead to intensify publicity for the business. Jack Brian® Record Store, Inc. has a long – term plan of opening chains of record stores all around the United States of America, 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
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where our record 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 wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to retailing business generally. It is normal for consumers to go to places where they can get prerecorded audio and videotapes, Blu-Ray discs and phonographic CDs, vinyl records, DVDs of movies, TV shows, cartoons and concerts and music-related items such as posters of bands or singers and even clothing and items such as bags and coffee mugs et al at cheaper price which is why big players in the industry attract loads of consumers.

We know we don’t have the capacity to compete with other big record stores, but we will ensure that the prices of items available in our record store are competitive with what is obtainable amongst record stores within our level and in our location.

  • Payment Options

The payment policy adopted by Jack Brian® Record 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 Jack Brian® Record 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

In view of the above, we have chosen banking platforms that will enable our client make payment for products purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to starting a record store business, the major area that you should look towards spending the bulk of your cash is in renting or leasing a standard store facility. Aside from that, you are also expected to pay your employees, create a user-friendly and easy to download website and then stock your store with different genre of music, audio books and video games.

These are the key areas where we will spend our startup 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 Jack Brian® Record 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 Business Consultant (writing of business plan inclusive) – $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 $35,600.
  • 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) – $30,000
  • The cost for Start-up inventory (stocking with a wide genre of prerecorded audio and videotapes, Blu-Ray discs and phonographic CDs, vinyl records, DVDs of movies, TV shows, cartoons and concerts and music-related items such as posters of bands or singers and even clothing and items such as bags and coffee mugs et al from different music artistes across the globe) – $20,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $1,750
  • The cost of purchase and installation of CCTVs – $1,000
  • 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
  • Miscellaneous – $1,000

We would need an estimate of one hundred and fifty thousand dollars ($150,000) to successfully set up our record store in Los Angeles – California.

Generating Funds/Startup Capital for Jack Brian® Record Store, Inc.

Jack Brian® Record Store, Inc. is solely owned and financed by Jack Brian and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

  • Personal savings
  • Family members and friends
  • From the Bank

N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

We are not going to relent in providing conducive environment for our workers and also the required training that will help them deliver excellent services at all times.

From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Jack Brian® Record Store, Inc. adopted the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store.

We will not waste time in adopting new technology, best practices and diversifying our services. Jack Brian® Record 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 company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. 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
  • Printing of Packaging and 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
  • Compilation of our list of products (prerecorded audio and videotapes, Blu-Ray discs and phonographic CDs, vinyl records, DVDs of movies, TV shows, cartoons and concerts and music-related items such as posters of bands or singers and even clothing and items such as bags and coffee mugs et al) that will be available in our convenience store: In Progress
  • Establishing business relationship with vendors – wholesale suppliers of various genre of music, audio books and related merchandise: In Progress
Joy Nwokoro