New Business Venture: Music Academy
Introduction/aground After over five years experience working In corporations, four friends have a desire to start their own business because they enjoy creating music and saw the need for music training in downtown Toronto. The music academy would cater specifically to children ages 3-16 specializing in rock music genres preparing them in lessons for “voice, guitar, keyboard, and percussion so they can perform in their own bands”(Scalable 469).
By offering specialized musical theory lessons to the children (public), the music academy can create a niche market segment and obtain a portion f the current musical retail/lesson market share currently share amongst Long and Macaque, Cosmos Music, and Stave’s Music.
Business Objective The music academy strategic goals include growth, expansion, dominating market share, and profitability. They must fully utilize each other’s strengths and weaknesses to begin the business.
In order to meet these objectives, the team must cooperate, incorporate effective customer service, and use their passion for music towards teaching, while creating a diversified musical learning environment. Current Situation and Problem/Opportunity Statement Environmental scanning and market research yielded results that indicated that the music academy is currently positioned in a busy location with high traffic and opportunities include a need for specialized guitar lessons in the rock music genre. In order to capitalized the opportunity for growth and compete with current music retail/lesson businesses (I. . Long and Macaque), It would be advisable for the music academy to offer a selection of musical Instruments and accessories available for sale to the general public that Include both purchasing and financing options. The current team has the necessary skills for musical instruction involving bass, keyboard, vocals, guitar, and drums. A potential problem that poses a threat would be access to capital and making sure that the initial investment costs are covered “after two years in business”(Scalable 470).
Critical Assumptions and Constraints This project requires strong participation of each music business members and the children. The four friends who participated In this music business should be able to work In a team and understand teaching children. The children must show improvement to prove the music training’s effectiveness. Most members need to learn some teaching skills and training because of their lack of experience. Some members will still have other employment, so there is a need for pre-arranged shifts.
Different courses with different teachers will be offered because of the members different skill set. Analysis of Options and Recommendation Our three options for our new business: 1 . Start the business immediately, since the key people are ready to build a music academy, a bass teacher who has experience of few paid gigs and also knows the aboard, a guitar teacher who can also record and edit CDC, a singing teacher who also knows how to work a crowd, and a drum teacher who is also a music teacher in the middle school.
The business can start right away according to the original plan. 2. Hold the business until there are enough staffs and Investments to start. Since there opening, until all the preparations are finished. 3. Do not start the business at all. Since the members all have Jobs and are doing well on their own, they do not really need to take the risk to start this business. Preliminary Project Requirements The main requirements of this project include the following: 1 . The business needs the initial investment amount. . The business needs cooperation of all team members. 3. The business needs a place to rent, and musical equipment. 4. Each team member needs to arrange his or her schedule because of different availabilities. 5. Each team member must be trained to teach children because not everyone knows how. Budget Estimate and Financial Analysis A preliminary estimate of costs for the entire project is $100,000 for the first year. Most of the costs come from salaries, $108,000, then operating costs, $60,000.