by: celeste smith p erformance music school. what we offer

By: Celeste Smith

Performance Music School

What We Offer

Personnel

Competition

Target Markets

Primary

Seconda

ry

Marketing Plan

Capital & Financing Budgets

Capital Item Cost

Leasehold Improvements $8,600

Furniture and Equipment 2,500

Musical Instruments 13,050

Total $24,150

Financing: 100% Equity

$30,000

Number of Customers

Year 1 Year 2 Year 3 Year 4 Year 50

50

100

150

200

250

300

350

Base CaseBreak-Even

Financials

Year 1

Year 2

Year 3

Year 4

Year 5

0

20000

40000

60000

80000

100000

120000

Net IncomeOwner's Com-pensation

Conclusion

Feasible?

Thank You

Questions?

Revenues

Year 1 Year 2 Year 3 Year 4 Year 50

100000

200000

300000

400000

500000

600000

FTE Teachers Required

Year FTE Teachers Required

1 1.08

2 1.51

3 2.11

4 2.95

5 4.13

Operating Expenses

Expense Annual Cost

Accounting & legal 1,500

Advertising 600

Benefits 4,287

Phone, Cell, Internet 1,740

Insurance 800

Labour Compensation 51,372

Lease & Occupancy cost 30,800

General Supplies 250

Repair & Maintenance 500

Capital Cost Allowance 1,727

Total $93,576

MarginsEstimated retail: $50/student per year

Rental payback: approx. 1 year

Division Gross Profit Margin

Lessons 25%

Retail 35%

Capital BudgetDescription Estimated Costs

Leasehold Improvements

Paint 500

Electrical 600

Carpentry/Doors 3,500

Flooring 2,500

Contingency Cost 1,500

Total Leasehold Improvements $8,600

Equipment

Desk & Chair 500

Phone 50

Computer & printer 700

Music stands 100 (5x$20)

Chairs (recital room) 750 (30x$25)

Tables 100 (2x$50)

Musical Instruments (for rental) 13,050

Retail racks 300

Total $15,550

Total Capital Costs $24,150