Syncopation Studios Business Plan

Syncopation Studios Business Plan

Summary:

Syncopation Studios is a company of the music industry located in New York City, New York with a goal of becoming the first and most successful P2P digital downloadable music site sponsored by the record labels, backed by the industry executives, supported by the artists, and designed for the fans. This business will begin as a minimal financial requirement home/mobile office with the intention of expansion throughout the entire world as a large corporation.

Initially focusing on development of its support and sponsorships as a free music research corporation for the fans Syncopation Studios will learn quickly what the fans want and who the competitors are. Let it be known that the weaknesses of the competition will become Syncopation Studios’ strengths.

Within the next year this business has a goal of creating a strong following and demand for its services to a majority customer base in New England of ages 16-40 years through personal market research, use of commercial media outlets such as television, newspapers, and magazines, and advertising and New England music scene information through the Syncopation Studios Website.

The financial requirements to continue making progress toward the primary goal will be met through industry-related sponsorships. These sponsorships will initially be local venue-based and adjusted throughout the industry as applicable. It is the goal of Syncopation Studios to have achieved consistent sponsorship from major record labels and released its P2P digital downloadable music site within three years, establishing the standards for the new music industry while providing sufficient royalty income to industry personnel involved.

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The Design of Syncopation Studios:

Although the original concept and developments for Syncopation Studios materialized from the mind of Skip Spoerke, he invited Dr. Charles Curry to become the CEO and primary share-holder of Syncopation Studios. This arrangement offers both professionals the ability to concentrate on their personal strengths to create a successful corporation.

Having served as a US Army Intelligence Interrogator for eight years and two combat deployments Dr. Charles Curry has proven his ability to effectively achieve the “correct” answer. In addition to his military training and proficiency Dr. Curry received his Doctorates in Business Management and Social Behavior through studies at University of Phoenix and Yale University.

The idea of Spoerke creating a company specializing in the role of P2P digital music downloads initiated early in 2005; however it wasn’t until October 2005 that this idea was deemed possible.

Before uniting forces with Dr. Curry to further develop the business idea, Skip Spoerke began researching the key roles of the music industry. Spoerke’s professional experience marketing and researching several aspects of the music industry in the New England and Dr. Charles Curry’s education and military experience have proven valuable assets to Syncopation Studios and therefore, these two professionals have decided to become partners in this business venture.

Matthew Shuck has been brought on board for technological development and design. He is contracted by Dr. Curry and Spoerke for his expertise in cutting edge computer technology and will design the P2P platform and other Internet related tools. This contract will not expire until all programming and technological developments are complete, at which time he will be offered an extended contract for maintenance of the platform.

The details of said idea are found within this business plan.

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Management:

Dr. Curry will assume the general management responsibilities as the CEO even as this business grows; because of his military experience and education through Yale University and the University of Phoenix and knowledge of the human social behavior it is believed that this business venture will prove effective and capable of meeting its goals. Therefore, there will not be a change to this arrangement unless he and/or Spoerke decide to seek outside management resources. The role of the individual employee within the business is to assist in researching music industry, media outlets, venues, and other items of similar interest within each assigned area of operation. Accepting payment on behalf of Syncopation Studios, the paperwork involved in copyright, trademark licensing, contracts, and other areas will remain Dr. Curry’s responsibility as the general manager of Syncopation Studios. At any time Dr. Curry may step down from the management position voluntarily or ask for assistance from employees in accomplishing certain tasks.

Computerized and hard-copy files will be recorded and maintained by Dr. Curry of all financial assets and debts; reports of all studies conducted for the music industry and its relation to the fans and/or artists; and all sponsoring businesses per region, state, and/or city; Website addresses pertinent to the success of Syncopation Studios; trademark and copyright licenses and applications; and all potential/applicable venues, radio and television stations, music industry persons, and media information per region, state, and/or city. Printed and/or computerized copies of these files will be shared with all other applicable employees of Syncopation Studios upon change and/or request.

As the corporation expands and other offices are opened around the world, managers will be hand-selected by Skip Spoerke and Dr. Charles Curry for each respective office. Such managers will be responsible for area specific research, sponsorships, hiring of employees, and internal financing. All reports will be submitted to Dr. Curry and managed accordingly.

All direct-impact decisions made on Syncopation Studios’ behalf will be voted on by management level employees. Such decisions could include financial obligations, sponsorship considerations, and business and/or marketing successes and failures. These discussions will be conducted through open-floor forums via teleconference and/or in person. Understandably, there will be some forums that require lengthy discussion, which may be organized by any employee of the company.

Skip Spoerke is the marketing director for Syncopation Studios. His education of the music industry and marketing, experience in retail management and sales, and knowledge of the subject justifies his ability to make valuable marketing decisions on behalf of this business. Therefore, there will not be a change to this arrangement unless he and/or Dr. Curry decide to seek outside marketing resources. The role of the individual employee within the business is to assist in the marketing aspects of Syncopation Studios including locating music industry personnel, suggesting new marketing ideas, and other items of similar interest within each assigned area of operation. Developing a strategic marketing strategy, merchandising, communicating with media and publicity personnel, managing the Syncopation Studios website, Emails, Mailing Lists, and Sponsorship programs, and tracking all industry connections will remain Skip’s responsibility as the marketing director of Syncopation Studios. At any time Skip may step down from the marketing position voluntarily or ask for assistance from other employees of the business in accomplishing certain tasks.

As the business continues progressing, industry, venue, media, radio, and television research will remain an important ongoing project. All research will be conducted by each employee as necessary and presented to the appropriate member, as directed through forums, for review and action. Each project will have a deadline to ensure smooth operation and seamless absorption into the market. Each person will be responsible to meet the deadlines given.

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All merchandise will be priced at competitive levels within the current market. In addition to merchandise Syncopation Studios will offer artist memberships for direct access to fans and additional connections in relation to music industry professionals. Such memberships will be priced at a low per month per band/artist rate of $10 and will include Do It Yourself industry educational tips, databases of industry and venue contacts, artist/band listing on Syncopation Studios website, upload of up to three digital music files for free download and unlimited music files for the pay for file-sharing plans (once applicable), and access to potential fan demographic statistics based on genre of music, target age group, and area of interest.

Once the P2P file-sharing platform is released the fans will pay a low monthly fee of $10 for an unlimited sharing license, or they may choose a lower cost limited sharing plan, which will regulate limitations to how many files may be shared. Syncopation Studios will disperse funds as necessary to cover overhead of music industry royalties. These royalties will be based on a percentage based scale of song/artist download popularity for each month and distributed to the respective representatives. They will not be based on a per song per artist basis. As Syncopation Studios achieves higher positioning among the industry and fans these royalties and incentives will increase, not to exceed a total of 25% of all revenue generated by Syncopation Studios. It will be in this manner that industry personnel, including, but not limited to, artists, record labels, publishers, and writers will be compensated for their sponsorship and support of Syncopation Studios. This method of compensation could prove very beneficial to all parties included and should influence artists, labels, publishers, writers, and other industry personnel to place more focus on the fans in order to develop greater profits from P2P file-sharing.

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Business Structure:

Syncopation Studios is, and will remain to be a Corporation. Within the Corporation Dr. Charles Curry will hold the title and responsibilities of CEO and retain a minimum of 50% of the shares. Skip Spoerke will remain the corporation’s Marketing Director and will retain a minimum of 15% of the shares. The Executive Officers of each subdivision will also serve as the Board of Directors and retain 5% of the shares each. There will be a maximum of seven Executive Officers and/or subdivisions throughout the world, each responsible for headquartering several regional offices.

There will be a central account for Syncopation Studios profit and a second account for sponsorship funds. At the end of each year those funds will be taxed accordingly.

Before signing any financial contracts Syncopation Studios CEO Dr. Charles Curry and Marketing Director Skip Spoerke will communicate with banking officials and Certified Public Accountants regarding account options and income tax filing.

Dr. Curry will maintain documentation of all income and debt generated by Syncopation Studios. These files along with others of interest to the subdivisions and/or regional offices will be available at any time to anyone seeking information from them. Documentation of all media coverage, industry influences, and sponsorship contracts are primarily what Spoerke will maintain for subdivision and/or regional office information.

Market Descriptions:

General Market Description:Respectfully the general market for Syncopation Studios is the music industry and music-loving consumers. The music industry, consisting of record labels, publishing companies, distribution companies, venues, radio stations, television stations, film studios, and people such as publicists, managers, Artist and Repertoire (A&R) label representatives, booking agents, artists, and lawyers are valuable assets to Syncopation Studios for research and development of each specific market. However, it is the music fan that will always remain the most important asset to this corporation.

Specific Market Description:Syncopation Studios will expand their services through means of regional offices, starting in New York City which covers all of New England, spanning across the United States and the entire world. Because the corporation will be promoting and offering their services primarily through the Internet, each of these offices will be directed at gaining regional information to distribute to the world. Therefore, their customers will be generally sixteen to forty years of age who own or frequently use personal and/or office computers with Internet capabilities. Many of their fan-based following will be professional working men and women or students seeking new venues and artists in their local area, and who enjoy P2P file sharing.

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Competition Profiles:Syncopation Studios has many competitors for P2P file sharing. However, there are no other businesses in the P2P music file-sharing industry sponsored by record labels and backed by the industry executives. Through achieving each of their goals Syncopation Studios will set a standard in the music industry of professionalism, creativity, and fan energy that no other competitor can produce.

The strengths of Syncopation Studios’ competition primarily reside in the ability to focus on “breaking the rules” resulting in a fan-base that, although skeptical, somewhat finds a thrill in “stealing” music. Syncopation Studios will be successful at accomplishing close relationships with their following through becoming the legal and easiest way of P2P music file-sharing. It is uncommon ground that this business treads on; however it is ground that Syncopation Studios feels must be broken.

Due to the competition’s strength Syncopation Studios will also take customer satisfaction to a new level among its following. Syncopation Studios believes that it’s the image of family that will allow this business to achieve a new level of success among P2P file-sharers. The corporation is initiating the development of becoming the first and most successful P2P digital downloadable music site sponsored by the record labels, backed by the industry executives, supported by the artists, and designed for the fans that could change the music industry. So, while other P2P music download sites play on the weakness of the “breaking the rules” model Syncopation Studios is successfully designing the future of music.

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Marketing Plan:

Syncopation Studios has initiated a campaign devised to unite the music industry to the fans through use of P2P file-sharing and industry information deemed useful to the fans, and are original to the market by doing so. By researching what the fans, artists, and industry connections want this business will continue their success in this campaign. In addition to research Syncopation Studios will also gain a following through local radio stations, media representation, and sponsorship support through the various industry connections. It is believed that the musical balance and social atmospheres that connect the following of Syncopation Studios will inadvertently drive higher demands of the music industry to sponsor P2P music file-sharing in the near future.

Syncopation Studios’ marketing campaign is designed to deliver services and product materializing from a local standpoint and developing into worldwide distinction. It is by use of advertising, promotions, customer satisfaction, and public relations that this development can be achieved. As Syncopation Studios’ coverage area expands so will their following and recognition in the music industry. It is the mission of delivering high-quality P2P music file-sharing that people will demand from the music industry that will allow Syncopation Studios to continue expanding its coverage area to meet their goal of developing into worldwide distinction.

In order to achieve such distinction many marketing materials and ideas will be used. These ideas include, but are not limited to press releases, publicity flyers, business cards, Syncopation Studios stationary, merchandise contests and giveaways on their Website, biweekly Email Syncopation Studios Newsletters, Email Syncopation Studios Quick Shots of short notice developments or changes, the Syncopation Studios website, and through radio stations, networking, industry-related sponsorships, charity events, various music oriented websites, radio interviews, television spotlights, and merchandise such as posters, stickers, T-shirts, hooded sweatshirts, and hats.

Sale and distribution of merchandise will be done through self-distribution at live appearances and via the Internet at the Syncopation Studios Website. As the business develops its product line and begins to receive national/international attention other merchants will be given the opportunity to display some of Syncopation Studios merchandise in their stores. The stores that accept the opportunity will be compensated either through a flat fee or percentage of income, as determined per store.

Sponsorships will be established through research and inquiries to several music industry businesses for monetary support. These businesses will primarily derive from the regions of each office and/or are Internet driven. Businesses that wish to sponsor Syncopation Studios will be compensated through various means of advertising. Such advertising will be based on monetary value and include Website promotion, logos on printed materials, testimonials, promotion through Syncopation Studios Newsletter, banner displays, and more. All sponsorships will be established by Spoerke and contracted with the sponsor and Syncopation Studios best interests in mind.

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Syncopation Studios Customer Service Policy:The Customer Will Be Extremely Satisfied…

Nothing is more important to Syncopation Studios than your satisfaction. We want every experience you have in dealing with us to not only be pleasant and rewarding, but an outstanding example of customer service. No one is perfect, even though we strive to be, and from time to time we all make mistakes. As far as customer service goes, Syncopation Studios doesn’t care who made the mistake, the only thing we care about is your satisfaction. This is why we feel we have the best service policy and customer service in the music industry. Dealing with Syncopation Studios will be a very positive and memorable experience for YOU!

Basically, our service policy goes something like this:

#1 Our Mistake: Any merchandise item purchased direct from Syncopation Studios that is returned in original packaging and accompanied by a copy of the original invoice within 30 days will be exchanged or purchase price refunded, your choice. We pay the round trip shipping.

#2 Your Mistake: Any merchandise item purchased direct from Syncopation Studios that is returned in original packaging and accompanied by a copy of the original invoice within 30 days will be exchanged or purchase price refunded, your choice. You pay the round trip shipping.

#3 Defective Products: Any defective merchandise item purchased direct from Syncopation Studios may be returned within 30 days for repair, replacement, exchange, or full refund, your choice. Defective item returns are Syncopation Studios TOP PRIORITY and are processed within 2 business days and product returns are shipped prepaid via UPS 2nd day air. Obviously incorrectly installed or abused products are not subject to return, however we will usually give you a discount on the replaced product.

#4 Product Purchased Through A Dealer/Distributor: Any defective Syncopation Studios brand product purchased through any of our dealers or distributors may be returned direct to us for repair, replacement or exchange for other product. If you require a refund, you must return the product to the company you originally purchased it from, they in turn will send it to us for adjustment.

#5 Miscellaneous: Items that do not fall into the above categories are not accepted for return.

#6 P2P File-Sharing: Due to the nature of the music business, all sales are final on any P2P File-Shares. Obviously this does not apply to any defective downloads; we will promptly request that the user remove the defective file and we will credit your account for another download if applicable.

#7 Product Return: To guarantee prompt processing of your return, please Email Customer Service at: [email protected] and let us know what item and why you are returning it. Send all returns to: Syncopation Studios, 1350 The Way, New York City, New York, 28945 prepaid.

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DISCLAIMERS: Syncopation Studios expressly disclaims liability for incidental or consequential damages. As provided for below, we do not offer any written or implied warranty on our products and expressly disclaim any implied warranty of merchandise or service for any particular purpose.

As a condition of sale, any controversy or claim arising out of or relating to this sale, shall be settle by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. On any claim related to goods or services sold by Syncopation Studios jurisdiction for the arbitration shall be exclusively in New York, regardless of where the claim may arise. No claim shall be actionable unless commenced within one year from date of sale.

NO WRITTEN WARRANTY: Due to the complexities of complying with the Federal warranty law, Syncopation Studios does not offer a written warranty at this time. We continue to stand behind our products and services, and to care for our customers, but we cannot make guarantees or warranties of any kind. This general statement of policies and disclaimers is effective October 1, 2005, and no prior statements or promises shall be of any effect for transaction after October 1, 2005.

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Operations Plan:

Facilities and Equipment:In order for Syncopation Studios to consistently perform its function as a fan-designed music industry website equipment is necessary for business operations, merchandise, and transportation assets. This section will determine what equipment is to be considered essential, optimal, and projected investments for the start-up of this business.

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Essential:

-- Merchandise -- (for guest appearances)1 table 8’1 table skirt and cover 1 Syncopation Studios banner 1 cash box w/ $50 small bills for change 1 price chart25 of each article of clothing (various sizes)20-50 stickers (various designs)

-- Merchandise -- (In stock)100 of each article of clothing (various sizes)100 of each sticker design

-- Transportation --Most transportation fees will be covered through sponsorships, whether airline, auto, or other means. Transportation not covered through sponsorships will be provided by employee.

-- Business --Home OfficeInternetSyncopation Studios LetterheadSyncopation Studios Business CardsSyncopation Studios Website – www.syncopation.comSyncopation Studios Envelopes2 computers – provided by Dr. Curry and Spoerke2 Printers (1 laser, 1 inkjet) – provided by Dr. Curry and Spoerke2 file cabinets – provided by Dr. Curry and SpoerkeFile folders2 Cell phones – provided by Dr. Curry and Spoerke

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Optimal:

-- Merchandise -- (guest appearances)1 professional merchandise booth 1 VMF banner 1 self-contained professional lighting system1 cash box w/ $50 small bills for change 1 price chart50 of each article of clothing (various sizes)200 stickers (various designs)

-- Merchandise -- (In stock)1000 of each article of clothing (various sizes)1000 of each sticker design

-- Transportation --Most transportation fees will be covered through sponsorships, whether airline, auto, or other means. Transportation not covered through sponsorships will be provided by employee.

-- Business --OfficeInternetSyncopation Studios LetterheadSyncopation Studios Business CardsSyncopation Studios Website – www.syncopation.comSyncopation Studios Envelopes2 computers – provided by Dr. Curry and Spoerke2 Printers (1 laser, 1 inkjet) – provided by Dr. Curry and Spoerke1 Fax Machine2 Land Line Phone Systems (preferably VOIP)2 file cabinets – provided by Dr. Curry and SpoerkeFile folders2 Cell phones – provided by Dr. Curry and Spoerke

Projected Investments (within three months):1. lighting for merchandise booth2. initial selection of merchandise

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3-Year Projected Timeline:By the end of March 2006

- Start-up business- continue market research and development in NY- order initial merchandise- purchase lighting for merchandise booth- establish sponsorships of $500 per week- start developing strategic plan and industry connections for regional impact- establish a consistent following of 1,000 people

By the end of June 2006 - continue developing strategic plan and industry connections for regional

impact- gain media attention through promotion of Website, appearances, and news

releases of new merchandise- release new merchandise designs- establish sponsorships of $1,000 per week- establish a consistent following of 10,000 people

By the end of December 2006- design and order new merchandise- initiate expansion of New England area and development in Los Angeles, CA- start developing strategic plan and industry connections to initiate South West

regional impact- continue building media attention through promotion of Website, appearances,

and other news-worthy happenings- establish sponsorships of $3,000 per week- establish a consistent following of 25,000 people- purchase professional merchandise booth

By the end of March 2007- release new merchandise designs- continue building media attention through promotion of Website, interviews,

appearances, and other news-worthy happenings- initiate expansion of South West region and development in Minneapolis, MN- start developing strategic plan and industry connections to initiate Midwest

regional impact- establish sponsorships of $5,000 per week- establish a consistent following of 40,000 people

By the end of June 2007- continue building media attention through promotion of Website, interviews,

appearances, and other news-worthy happenings- initiate expansion of Midwest region and development in Miami, FL- start developing strategic plan and industry connections to initiate South East

regional impact- establish sponsorships of $6,000 per week- establish a consistent following of 50,000 people

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By the end of September 2007- design and order new merchandise- continue building media attention through promotion of Website, interviews,

appearances, and other news-worthy happenings- initiate expansion of South East region- start developing strategic plan and industry connections to initiate Canada

National impact - introduce artist memberships to Website- establish sponsorships of $10,000 per week- establish a consistent following of 100,000 people

By the end of December 2007- release new merchandise designs- continue building media attention through promotion of Website, interviews,

appearances, and other news-worthy happenings- initiate expansion of Canada- start developing strategic plan and industry connections to initiate European

impact- establish sponsorships of $20,000 per week- establish a consistent following of 500,000 people

By the end of March 2008- design and order new merchandise- continue building media attention through promotion of Website, interviews,

appearances, and other news-worthy happenings- initiate expansion of Europe- start developing strategic plan and industry connections to initiate global

impact - begin persuading industry to authorize and support P2P file-sharing- establish sponsorships of $40,000 per week- establish a consistent following of 1,000,000 people

By the end of September 2008- release new merchandise designs- continue building media attention through promotion of Website, interviews,

appearances, and other news-worthy happenings- initiate global expansion- exercise strong-arm tactics to eliminate refusing industry businesses to

support P2P- establish sponsorships of $50,000 per week- establish a consistent following of 2,500,000 people

By the end of December 2008- release new P2P platform- continue building media attention through promotion of Website, interviews,

appearances, and P2P platform- solidify global expansion- Complete P2P platform merge into market- establish sponsorships of $150,000 per week- establish a consistent following of 12,500,000 people

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Risks:There are several possible risks being taken by Syncopation Studios. Such risks include, but are not limited to, lawsuits, disrupting the music industry, transportation difficulties, and payment issues. There are other business and financial risks to be taken as well, such as the amount of financial investment in opening new offices, designing and marketing merchandise, expenditures required to uphold the company’s proposal to achieve success, and hiring of personnel as the business expands.These risks and others have been discussed and alternative plans will be constructed to continue progression in the event a primary strategy isn’t effective.

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Financial Information:For each of Syncopation Studios’ goals over the next three years there are several financial requirements to be met and revenue gained. Therefore, the final section of the Syncopation Studios Business Plan has been broken down by type of goal and expenditure and revenue expectations – charted as best guess, low side, and high side.

Expenditures – Start-upGoal Type Best Guess Low Side High Side

Networking $100/month/employee $70/month/employee $125/month/employeeGeneral Marketing $1500/month $1000/month $2000/monthGeneral Business $2000/month $1500/month $2500/monthMedia $100/month $50/month $200/monthMerchandise $200/quarter $140/quarter $250/quarterTravel $300/quarter $250/quarter $500/quarter

Revenue – Start-upGoal Type Best Guess Low Side High Side

Merchandise $200/quarter $150/quarter $300/quarterSponsorships $8,000/quarter $5,000/quarter $10,000/quarter

Expenditures – Three YearsGoal Type Best Guess Low Side High Side

Networking $50/month/employee $30/month/employee $75/month/employeeGeneral Marketing $150000/month $100000/month $200000/monthGeneral Business $200000/month $150000/month $250000/monthMedia $10000/month $5000/month $20000/monthMerchandise $20000/quarter $14000/quarter $25000/quarterTravel $300000/quarter $250000/quarter $500000/quarter

Revenue – Three YearsGoal Type Best Guess Low Side High Side

Merchandise $50000/quarter $30000/quarter $60000/quarterP2P downloads $125 mil/quarter $100 mil/quarter $150 mil/quarterArtist Membership $5 mil/quarter $3.5 mil/quarter $7.5 mil/quarterSponsorships $1.8 mil/quarter $1.5 mil/quarter $2.1 mil/quarter

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Documents

Syncopation Studios Business Plan