Professional Documents
Culture Documents
Table of Contents
I.
II.
III.
IV.
V.
VI.
VII.
Executive Summary
General Company Description
Products & Services
Marketing Plan
a.
Business Mission & Objective
b.
Description of the Industry
c.
Place
d.
Competition
e.
Evaluate Performance using Marketing Strategy
Operational Plan
Management & Organization
Financial Plan
a.
First 12 months Cash Flow
b.
Year Two Cash Flow
c.
Year Three Cash Flow
d.
Year Four Cash Flow
e.
Opening Day Balance Sheet
f.
Projected Cash Flow
g.
Break-Even Analysis
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will have live music compared to the jukebox in the corner of other competitors.
Matt and Brandan have over 13 years of experience combined working in the bar industry. There
skills vary from everything to bus boy all the way up office manager. These skills will play a key
role in the start-up of our business. Working almost every position that a bar has to offer we will be
able to properly train and lead employees to make our business as successful as possible. Devin has
been going to school for 4 years majoring in the information technology field and will be able to
have skills in networking being able to get the venue into the internet world. Also, being able to find
rising talent that will be willing to perform to be able to get their name out into the community and
being able to raise money for their bands.
The legal form of ownership that will be used is limited liability corporation (LLC). The reason for
this decision, it is the most piratical due to the tax purposes, administrative record keeping risk and
the liability concerns.
Distributor
Bud
Winner
23.5
80.00
Bud Light
Winner
21.5
80.00
Blue Moon
Bond
31
Coors Light
Bond
20.5
Corona
FP Winner
25.5
N/A
Corona Light
FP Winner
25.5
N/A
Winner
32.5
Hevay Seas
Republic National
28.1
110.00
$
80.00
110.00
Magic Hat
FP Winner
26.75
Miller Lite
Bond
20.5
80.00
National Bo
Bond
19.5
75.00
Liquor
Type
Distributor
Bourbon
Jim Bean
Republic
National
207.53
Evan William
Republic
National
130.45
Wild Turkey
Republic
National
307.00
BeefEater
Republic
National
245.93
McCalls
Reliable
Churchill
61.60
Seagrims Gin
Republic
National
168.88
Captain Morgan
Reliable
Churchill
221.93
Port Royal
Republic
National
65.93
Curzan
Republic
National
145.01
GIN
RUM
Scotch
N/A
Jonnie Walker
Reliable
Churchill
449.93
McCormick
Republic
National
109.12
Don Julio
Reliable
Churchill
271.97
El Jimador
Reliable
Churchill
230.32
Patron
Reliable
Churchill
451.13
McCormick
Reliable
Churchill
59.44
Smirnoff
Reliable
Churchill
157.96
Cabin Fever
Reilable
Churchill
251.93
Irishmen
Republic
National
131.94
Tequila
Vodka
Whiskey
Marketing Plan
Business mission and objectives
To be know in the area as the best place to come and hear a quality music from various genres. Be a
place where the small local band, as well as, the large touring groups will feel comfort and deliver
their finest work.
Description of the industry
A music venue is any location used for a concert or musical performance. Typically, different types
of venues host different genres of music; however we will be using that to our advantage because
we will have a wide array of music. Most privately owned music venues charge an entry fee to
generate a profit.
Place
The bar will be an indoor music venue, club, and bar located in the Canton neighborhood of
Baltimore, Maryland. The neighborhood is located along Baltimore's outer harbor in the
southeastern section of the city Canton is adjacent to or near the neighborhoods of Patterson Park,
Fells Point, Highlandtown, and Greektown. It is roughly two miles east of Baltimore's downtown
district.
Competition
In theory, all music venues (nightclub, bars, concert halls, opera houses and bandstands) are
competition. In reality, the three main competitors are Shortys, Red House Tavern and Rams Head
Live!. Rams Head is the closest to our niche business type but it located downtown in the Power
Plant Live! area. The Red House Tavern is located in Canton and offer live music on occasion but
they are going from more of a neighborhood bar feel. Shortys also in Canton and offers live music
but they are a martini bar and market to a smaller fancier clientele.
Compared to the other competitors the Boh Sound stage has a higher percentage of live music
throughout a months time. In the pie chart shown, it displays the comparison of live music between
each venue in a given month. These were based on scheduled performances and the percentage of
live music per week.
Also, comparing to the other competitors is going to be prices on Alcohol, Food, and Entry. In the
chart below, the chart describes the outstanding performance that the Boh Sound Stage has over the
other competition with the price of the venue. Being able to have lower prices will allow the Boh
Sound stage to rise above the competitors with affordable prices. With the economy still in a strut,
the affordable prices will allow customers to be able to afford good live entertaining music.
Operational Plan
Production
How and where are your products or services produced?
Various distributors will make many of the products that will receive off site and delivery to us. We
will receive all of our alcohol from three companies reliable Churchill, Bond, and Republic
National. We plan on having all of our deliveries come in from these companies every Thursday
right before we get the big weekend rush. We will be receiving food through two companies Sysco
and Performance Food Group(PFG). We plan on having food be delivered once a week typical that
would be earlier in the week but we can receive shipments any day of the week as needed.
Quality Control
Quality control will be done all in house. The Daily manager will take in food and liquor shipments
and inspect them for quality and freshness the day that the product arrives. The daily manager will
also inspect products that have already been in house for sometime. This will allow us to stay on top
of our product as well as assure that the standard that we set for food and drink is being meet. Head
managers will listen to musicians before they are booked to make sure that we only bring the best
As far as customer service is concerned we are all about the customer at Boh Sound Stage. If
the customer is unhappy with any of the products or services that we provided there will be a full
100% refund for that products and we will do whatever it takes to make that customer happy.
Inventory control
For inventory control we will run on a just in time bases for most products. Which means we
will receive a product as soon as one is needed. We will not keep a huge inventory of food and
alcohol to one save the business money as well as not getting stuck with items that have passed
there freshness date which in turn we will lose money on. For items such a cups, napkins, Togo
container ect. We will order in bulk for those items are not perishable.
Location
Physical requirements:
2986 square foot building divided into three floors. First Floor includes a 30-chair bar with a stage
located on the back wall of the bar. Second Floor comes equipped with pool and dartboards both set
up for competitive play. Third floor is somewhat unfinished its up to us but we plan to add another
smaller stage up top with a small more intimate bar
Three story converted row house located on Boston street which is host to over 20 bars
Commercial Zoning Area
Power will be provided through BGE with standard set rates. Trash and water is done by the
city for a set fee as well
Access for the building is very easy for customers as well as suppliers to reach us. With street
parking all around this makes it an ideal location for a sound stage. Customers will be able to walk
in right off the street and distributors will be able to make delivers in either the front of the back of
the building there is an alleyway where delivery trucks and pull in and drop off products. Since the
area we are in is as much commercial as it is residential most of customers will take a cab or walk
to our bar. It is very important that we are in walking or cab distance because once the street
parking is full there is nowhere to park. Having people in walking distance is a huge advantage not
only
for
us
but
also
for
the
safety
of
our
customers.
10
As far as construction goes we have no plans at the moment once business beings to take off after a
year or so we will being to make improvements on the building the first two floors just got
renovated and the third floor is as good as we need to be now.
11
Cost: Estimate your occupation expenses, including rent, but also including maintenance, utilities,
insurance, and initial remodeling costs to make the space suit your needs. These numbers will
become part of your financial plan.
Our business will operate everyday from 2p.m. to 2a.m. Its is very important to use that we stay
open every day and from 2-2 to create consistency with our customers
Legal Environment
There are two distinct areas that our music venue will need to be licensed in. First, will be
the sale of product the liquor license is initially purchased with the building but after year one it will
be four hundred dollars annual. Additionally, a Traders License will need to be acquired to sell
anything non-liquor related, which includes the sale of food and tickets; the charge will be one
hundred dollars annual. Second, will be the music which falls between two different licenses;
American Society of Composers, Authors & Publishers is seventy five dollars and Broadcast Music
Incorporated is fifty dollars. Both are needed they cover live music of originals and cover, as well
as, DJing or other reproductions. The Health Department needs to clear the building and see that it
is up to code. We will cover building insurance of any damage to the building and some product.
Also, liability insurance will be purchased to cover staff and patronage in case of any misconduct
that leads to bodily harm.
Personnel
We will have a staff of around 30 people. Here is a brief
Sound Tech-someone who can be able to manage the volume of the sound and be able to change at
vital points. Pay: 40,000 salary
Lighting designer-be able to have different colors of lights and positions to be able to express the
mood of each song being performed.
Pay: 35,000 salary
Bartenders-being able to serve alcohol and complete orders in a timely fashion for each customer
that comes to the bar area
Pay: $3.50 per hour nighttime, $7 per hour daytime
Servers-being able to serve each customer and seat customers in proper areas of the venue.
Pay: $5 per an hour night, $7 per hour day
Cleaning crew being able to work later hours to clean the venue for the next business day.
Pay $8 and hour day or night
Cooks-being able to cook what is on the menu at a timely fashion to please each customer
Pay: 10-14 dollars an hour depending on position
Security-being able to make sure that the environment stays safe and no violence occurs. Being
able to ID properly so that everyone in the venue is legally able to consume alcohol.
Pay: $10 an hour, only needed at night time
As far as searching for employees goes we will use job as searches for our main key employees and
those will include; light and sound design people, head chef, and a head manager. All of the other
12
jobs that we will have open we will just take applications for as there jobs are not as vital to the
company but we will need them to operate. Brandan Bell and Matt Heaton will do the training in
house. With over 13 years of experience between the two of them this will give us all the skills we
need to train our employees to meet our standards.
HEAD CHEF JOB APPLICATION
Job description:
Inventory
What kind of inventory will you keep: raw materials, supplies, finished goods?
13
The types of thing that will be kept in our inventory will be liquor, food, and plastic wear for us
to serve customers with.
Average value in stock (i.e., what is your inventory investment)?
Our initial inventory investment will be around $25,000 with we will allocate between the three
categories of food, liquor, and plastic ware.
Rate of turnover and how this compares to the industry averages?
We plan to have a high turn over on alcohol. Since we are located in a bar heavy area people
like to drink so we can expense our alcohol to have a high turnover rate. For food we are looking a
medium to low turnover rate. We projected this because people are going to come to Bohs Sound
Stage to drink and hear live music the food is just an option to keep them in the building or for
those customer who may get hungry during the concert. We do not have an extensive food menu so
thats not what draws people to Bohs Sound Stage
Seasonal buildups?
Lead-time for ordering?
Suppliers
Identify key suppliers:
Key Suppliers
1.
Reliable Churchill- Annapolis, Maryland
2.
Bond Distributing- Baltimore, Maryland
3.
Republic National- Baltimore, Maryland
4.
Sysco- Pocomoke, MD
5.
PFG- Richmond, Virginia
All of the suppliers that we choose are both well established and consistent with their orders. Many
of these companies distribute to bar and restaurants all over the county as well as to many of our
competitor. Brandan and Matt have dealt with some of these distributors before and have previous
relationships with the people who run these companies. We did plan for backups and shortages that
is why we have employees three liquor distributors and two food distributors, if one company fails
and can not deliver our goods to us we will use one of the other distributors to make sure that our
product is of quality and arrives on time.?
Are supply costs steady or fluctuating? If fluctuating, how would you deal with changing costs?
Many of these cost that we have are fluctuating all depending on how the economy is doing. In
order to deal with these fluctuating prices we will raise prices accordingly. There will not be huge
spikes in prices many a quarter or two but enough to off set the rising food and alcohol cost.
Credit Policies
We plan to see on credit but only expecting Visa or MasterCard. We will have a minimum of 10
dollars for anyone paying in credit and we will have a ATM in the building for those who have
credit but wish to pay cash. In our industry it is very important to take credit. Almost half of our
transactions will be in credit. We will not extend credit, cards will be charged the moment the
customer will receive there food or drink and we will have a authorization charge of $25 dollars
14
every time a card is swiped. This is to make sure that the customer does have money on their
account and so we dont get stuck with the bill.
Devin Crawford is majoring in the Information Technology field and has all the skills to create a
maintain a web based presents. Also, he has been active in coordinating music event at Towson
University.
Brandan Bell has been working for different bars over the last eight years; he has been in every
position from busboy to manager of operations. He has even received additional education in
training.
Matthew Heaton has actively been working in finance for small organizations for the last six
15
years. He has performed every task from daily reconciliation of cash draws to reconciliation of bank
statements
Additional Non-Employees
Attorney:
Butler, McKeon & Associates, P.A.
616 Water Street, Suite 325
Baltimore, Maryland 21202
Telephone: (410) 779-0051
Fax:
(410) 625-2401
E-mail: info@butlermckeon.com
Accountant:
Maryland Association Of Certified Public Accountants Inc
901 Dulaney Valley Rd, Towson, MD 21204
Telephone: (800) 782-2036
E-mail: http://www.macpa.org
Bank:
Branch & ATM
Highlandtown
3415 Eastern Avenue
Baltimore MD 21224
Phone: 410-342-4560
Branch Hours
Lobby: Mon-Thu 9-5, Fri 9-6, Sat 9-1, Sun Closed
Drive-up: Mon-Fri & Sun N/A, Sat 9-1
ATM open 24 hours
16
Financial Plan
First 12-months Cash Flow: Appendix Three
The first year will incur the initial setup costs; as well as, the annual operating budget.
$3.00
$4.00
$4.00
$6.00
$8.00
$6.00
$10.00
Rail Liquor
Rail Liquor
The capacity of the building is 600; the staff and talent will be consume about 50 people. Based on
similar music venues the caption for us will be in three different forms: light, average and heavy.
The breakdown per night is:
Monday, Tuesday, Wednesday
150 people
Thursday, Sunday
350 people
Friday, Saturday
550 people
All information provided by the American Beverage Licensees which is located at 5101
17
River Road, Suite 108 Bethesda, MD 20816-1560. They are an organization that does studies and
publishes their finding freely to any organization that has a valid liquor license. This is a national
organization that has a lobbying component. Their mission statement is Initiate, promote, and
support laws, regulations and rules that preserve and protect the right of responsible on and off
premise retailers of beverage alcohol to operate legitimate and lawful businesses without
burdensome intrusion.
Break-Even Analysis
In our third year, we will break-even by paying back the loan in full. The loan is
$700,000.00 with a historically low interest rates; each month we the payments are $19,500.00.
After our initial costs to get the business running, our cost will be constant.
Fixed Costs:
Loan Payment
Building Insurance
Security system
Liability Insurance
Licenses
Advertising
Payroll provider
Variable Cost:
Alcohol
Food
Building Maintenance
Utilities
Entertainment
Employee salaries
18
Appendices:
Food Menu: Appendix One
The food menu is shown to have appetizers and entrees that will be served from 2pm until 1am.
This allows families to come during the day to get dinner and for customers late at night who are
consuming alcohol to also be able to eat food so that they will not get sick from an empty stomach.
The menu consist of small finger foods as appetizers and entrees. The foods are at reasonable prices
that can compete with the competitors in the surrounding area. The prices are cheap and will be able
to fill up a customer to their eating needs. *Attached at the end of the document is a menu that list
the foods that will be served
19
20
Expenses:
Loan Payment
Revenues:
Alcohol Sales
Light Remodeling
Price:
$234,000.0
0
$5,000.00
Audio Equipment
$10,000.00
Cover Charges
Audio Installation
Furniture
$3,000.00
$1,000.00
Total Revenue:
Alcohol
$156,000.0
0
$104,000.0
0
$10,000.00
$1,500.00
$500.00
$2,860.00
$18,700.00
$500.00
$400.00
$2,000.00
$2,000.00
$2,000.00
$468,000.0
0
$260,000.0
0
$200.00
Included
Included
Food
Building Insurance
Computer hardware
Computer accessories
Security system
Liability Insurance
Office supplies
Licenses
Utilities
Marketing
Advertising
Entertainment
Employee salaries
Payroll provider
Employee taxes
Benefits
Food Sales
Price:
$684,000.0
0
$312,000.0
0
$300,000.0
0
$1,296,000
.00
21
Workers compensation
Unemployment
Included
Included
Expense Total:
$1,281,660
.00
Price:
$234,000.0
0
$156,000.0
0
$104,000.0
0
$10,000.00
$10,500.00
$2,860.00
$18,700.00
$400.00
$2,000.00
$2,000.00
$468,000.0
0
$260,000.0
0
$200.00
Included
Included
Included
Included
$1,268,660
.00
Revenues:
Alcohol Sales
Food Sales
Cover Charges
Total Revenue:
Price:
$684,000.0
0
$312,000.0
0
$300,000.0
0
$1,296,000
.00
22
Price:
$234,000.0
0
$156,000.0
0
$104,000.0
0
$10,000.00
$10,500.00
$2,860.00
$18,700.00
$400.00
$2,000.00
$2,000.00
$468,000.0
0
$260,000.0
0
$200.00
Included
Included
Included
Included
Revenues:
Alcohol Sales
Food Sales
Cover Charges
Total Revenue:
Price:
$684,000.0
0
$312,000.0
0
$300,000.0
0
$1,296,000
.00
23
Expense Total:
$1,268,660
.00
Price:
$75,000.00
Revenues:
Alcohol Sales
Alcohol
$156,000.0
0
$104,000.0
0
$10,000.00
$10,500.00
Food Sales
Food
Building Insurance
Building Maintenance
Security system
Liability Insurance
Licenses
Utilities
Advertising
Entertainment
Employee salaries
Payroll provider
Employee taxes
$2,860.00
$18,700.00
$400.00
$2,000.00
$2,000.00
$468,000.0
0
$260,000.0
0
$200.00
Included
Cover Charges
Total Revenue:
Price:
$684,000.0
0
$312,000.0
0
$300,000.0
0
$1,296,000
.00
24
Benefits
Workers compensation
Unemployment
Included
Included
Included
Expense Total:
$1,109,660
.00
Price:
$595,000.0
0
Included
Included
Included
$5,000.00
$10,000.00
$3,000.00
$1,000.00
$2,000.00
$3,000.00
$1,000.00
$1,500.00
$500.00
Included
25
Liability Insurance
Office supplies
Licenses
Utilities
Marketing
Advertising
Employee salaries
Payroll provider
Employee taxes
Benefits
Workers compensation
Unemployment
$1,000.00
$500.00
$400.00
$2,000.00
$2,000.00
$2,000.00
$5,000.00
$200.00
Included
Included
Included
Included
Total:
$635,100.0
0