music store business plan pdf

Music Business Plan Template

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their music businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a music business plan template step-by-step so you can create your plan today.

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What Is a Music Business Plan?

A music business plan provides a snapshot of your music business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Music Business Plan

If you’re looking to start a music business or grow your existing business you need a music business plan. A business plan will help you attract investors and raise money, if needed, and plan out the growth of your music business in order to improve your chances of success. Your music business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Music Businesses

With regards to funding, the main sources of funding for a music business are bank loans and angel investors. With regards to bank loans, banks will want to review your music business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will want to see a professional music business plan. Such a plan will give them the confidence that you can successfully and professionally operate a music business.

The second most common form of funding for a music business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a music business.

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How to write a music business plan.

Your music business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your music business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of music business you are operating and the status; for example, are you a startup, do you have a music business that you would like to grow, or are you operating a chain of music businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the industry. Discuss the type of music business you are operating. Detail your direct competitors. Give an overview of your target audience. Provide a snapshot of your marketing plan. Identify the key members of your team, and offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of music business you are operating.

For example, you might operate one of the following types:

• Recorded Music – This type of music business sells music that has been recorded in a studio.
• Music Licensing – This type of music business licenses music for films, TV shows, video games, advertisements, online videos, etc.
• Live Music – This type of music business sells tickets to live concerts and tours. They might also operate a school that teaches people how to become successful musicians, or they might sell memorabilia such as T-shirts and posters.
• Music Publishing – This type of music business is in the rights business; they represent songwriters. If someone wants to use a song by a songwriter that is represented by the music publishing company, they need to get permission and then pay a royalty.
• Music Production – This type of music business provides a service for musicians and recording artists. They might produce and record an album and then provide marketing services such as radio promotion and public relations.
• Music Business Consulting – This type of business is in the business of providing advice to musicians on how to become successful. For example, they may offer consulting on how to promote your music and how to book gigs.
• Music Artist – This type of business operates as an individual musician or music group. For example, they might be solo artists, bands looking for a record deal, or groups of musicians hoping to become successful together.
• Music Education – This type of music business offers music lessons, either in-person or online.
• Retail Music Store – This type of music business sells instruments, sheet music, and other music-related items.

In addition to explaining the type of music business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the music business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards more people purchasing music online, you may want to focus your marketing efforts on digital platforms.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your music business plan:

• How big is the music business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your music business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your music business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments for a retail music store:

• Adult beginning guitar players
• Teenage/college-aged students who want to learn how to play the electric guitar and will commit time and money to do so
• Middle-aged adults who want to learn how to play acoustic guitars for their own enjoyment
• Vintage guitar enthusiasts who are looking for specific instruments that are considered rare or valuable.

The following are examples of customer segments for a music education business:

• Parents who want their children to have a well-rounded education and believe that music is an important part of that
• Children who want to learn to play an instrument because they enjoy music
• Adults who want to improve their skills at playing an instrument they already know how to play

As you can imagine, the customer segment(s) you choose will greatly depend on the type of music business you are operating. Clearly, baby boomers would want a different atmosphere, pricing, and product options, and would respond to different marketing promotions than millennials.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. 

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers or clients.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other music businesses within the same niche.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes physical stores, online stores, and even locally owned retail shops that sell instruments.

Here are some examples of indirect competitors within the music education niche: 

• Local music store selling instruments
• Online retailer selling musical instruments
• The public school system offering a music program to students in grades K-12 or college offering a music ed program as a minor.

You need to mention such competition to show you understand that not everyone in the market is your direct competitor. Furthermore, including a SWOT analysis of your business in this section will demonstrate how you plan to compete against them.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products/services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to reach out to customers of your competitors and ask them what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide amenities that your competitors don’t offer?
• Will you make it easier or faster for customers to book your own studio?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a music business plan, your marketing strategy and plan should include the following:

Product : in the product section, you should reiterate the type of music that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling instruments, you may also offer music lessons, CD recordings of the lessons, and other merchandise related to your business.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the options you offer and their prices.

Place : Place refers to the location of your music business. Document your location and mention how the location will impact your success. For example, is your music business located in a commercial district with a lot of foot traffic? If not, will you offer delivery or online sales?

Promotions : the final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., partner with vendors to provide recording packages at a discount over a la carte services)
• Local radio stations advertising
• Banner ads at local music venues
• Social media advertising

Operations Plan

While the earlier sections of your music business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your music business such as serving customers, cleaning, ordering supplies, and so on. This section should list the specific tasks that will need to be completed each day and who will be responsible for them.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 25th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your music company’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a music business.

Ideally, you and/or your team members have direct experience in the music business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in music and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many customers will you serve? How much does it cost to provide your service/product? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your recording studio, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your music business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a music business:

• Location build-out including design fees, construction, etc.
• Cost of equipment like studio gear, instruments, amps, inventory, etc.
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your studio design blueprint or location lease.

Music Business Plan Summary

Putting together a business plan for your music business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the music business, your competition, and your potential customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful music business.

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Music Business Plan

Music can unite individuals, inspire social change, and strengthen communities & it is satisfactory for many musicians too. Plus the financial and creative rewards are great. Therefore, want to start your own music studio or band? Then planning everything priorly is the priority.

Need help writing a business plan for your music studio business? You’re at the right place. Our music business plan template will help you get started.

Free Business Plan Template

Download our free music business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Music Business Plan?

Writing a music business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your music business, its location, when it was founded, the type of music business (E.g., record labels, music publishers, live music industry), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Highlight the services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you may include music recordings and albums as services.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Record labels
• Music publishers
• Live music industry
• Music streaming services
• Describe the legal structure of your music company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your music company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established music service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, music lovers, music directors, movies, younger audiences, etc can be the ideal market for the music business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your music services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, the demand for rap and pop music is increasing; explain how you plan on dealing with this potential growth opportunity.
• Regulatory environment: List regulations and licensing requirements that may affect your music company, such as copyright laws, advertising regulations, etc.

Here are a few tips for writing the market analysis section of your music production business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Music stores
• Music licensing services
• Music promotion services
• Music education services
• Describe each service: Provide a detailed description of each service you provide, including how it works, what it does, and any technical specifications or features.

In short, this section of your music plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, exclusive content, high-quality production, niche market focus, etc, could be some of the great USPs for a professional music company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, email marketing, influencer marketing, etc.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include online sales, partnering with other businesses, live shows, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc.

Overall, this section of your music studio business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your music business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your business’s staffing requirements, including the number of employees or music professionals needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Describe the steps taken to produce and distribute music-related products and services. It ought to contain details regarding any technological innovations employed in the production process, as well as any outsourcing of work or joint ventures with outside providers.
• Equipment & Instrument: Include the list of equipment and machinery required for music, such as musical instruments, sound equipment, recording equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your music business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your music company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, music director.) involved in the music business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your music business services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your music business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the music industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your music business plan should only include relevant and important information supporting your plan’s main content.

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This sample music business plan will provide an idea for writing a successful music plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our music business plan pdf .

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Frequently asked questions, why do you need a music business plan.

A business plan is an essential tool for anyone looking to start or run a successful music business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your music company.

How to get funding for your music business?

There are several ways to get funding for your music business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your music business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your music business plan and outline your vision as you have in your mind.

What is the easiest way to write your music business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any music business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Musical Instrument Store Business Plan PDF Example

• June 15, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful musical instrument store. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your musical instrument store’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a musical instrument store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your musical instrument store business concept into reality. Let’s dive in!

Our musical instrument store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your musical instrument store’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the store’s design, amenities, and why its location is appealing to potential clients.
• Supply & Products: Lists the musical instruments and accessories provided by your store, including the range of products and supplier partnerships.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the musical instrument market.
• Key Trends: Highlights recent trends affecting the musical instrument sector.
• Key Competitors : Analyzes main competitors nearby and how your store differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the musical instrument store and their roles.
• Financial Plan: Projects the store’s 5-year financial performance, including revenue, profits, and expected expenses.

Musical Instruments Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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Executive Summary

The Executive Summary introduces your musical instrument store’s business plan, offering a concise overview of your store and its offerings. It should detail your market positioning, the range of musical instruments and accessories you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your musical instrument store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your store’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Business Overview

For a Musical Instrument Store, the Business Overview section can be concisely divided into 2 main slides:

Store & Location

Briefly describe the store’s physical environment, emphasizing its layout, organization, and the overall ambiance that invites musicians and music enthusiasts. Mention the store’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to music schools, concert venues, or ease of parking. Explain why this location is advantageous in attracting your target clientele, such as aspiring musicians, professional players, or music educators.

Supply & Products

Detail the range of musical instruments and accessories offered, from basic instruments like guitars and keyboards to specialized items like professional-grade violins, drum sets, or digital audio workstations. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any exclusive brands, rare instruments, or custom options available. Mention any additional services that provide added value to your customers, such as instrument repair, rental programs, music lessons, or trade-in options, encouraging repeat business and customer loyalty.

Make sure to cover here _ Store & Location _ Supply & Products

Market Overview

Industry size & growth.

In the Market Overview of your musical instrument store business plan, start by examining the size of the musical instrument industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities. Provide data on the overall market value, growth rates, and projected trends in the musical instrument sector.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in digital and electronic instruments, the resurgence of interest in traditional and vintage instruments, and the growing popularity of online music education. Highlight the demand for high-quality, customizable instruments, as well as the trend towards eco-friendly and sustainably-produced instruments. Mention the impact of technological advancements in music production and the integration of smart technology in instruments.

Key Competitors

Then, consider the competitive landscape, which includes a range of stores from specialized boutiques to large retail chains, as well as online marketplaces. Highlight what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain types of instruments or services. For example, emphasize any exclusive product lines, personalized services like instrument customization, or unique customer engagement strategies.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the musical instrument store , highlighting Strengths (such as a wide range of instruments and expert staff), Weaknesses (including high operational costs or limited online presence), Opportunities (for example, growing interest in music education and digital instruments), and Threats (such as economic downturns that may decrease consumer spending on non-essential items).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Finally, create a detailed timeline that outlines critical milestones for the musical instrument store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the musical instrument store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the musical instrument store toward its financial and operational goals.

For your musical instruments store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your musical instrument store business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your musical instrument store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Privacy overview.

Music Business Plan Template

Written by Dave Lavinsky

Music Business Plan

You’ve come to the right place to create your music business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their music businesses.

Below is a template to help you create each section of your Music business plan.

Executive Summary

Business overview.

Musicians First Studio is a startup music company located in Nashville, Tennessee. The company is founded by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and client relations.

Musicians First Studio will provide a full suite of music production, management, and instruction services for both novice and professional musicians in the Nashville area. Musicians First will be the go-to music studio in Nashville for its client-focused services and dedicated professionals who are experienced in all aspects of the music industry. The company will be the ultimate choice for the needs of aspiring and professional musicians.

Product Offering

The following are the services that Musicians First Studio will provide:

• Artist Management
• Music Recording, Production, & Post-Production
• Private Music Lessons & Group Classes
• Venue Booking & Live Event Management
• PR & Marketing for New Artists

Customer Focus

Musicians First Studio will target new and experienced musicians in Nashville who are looking for professional production, management, or marketing services. The company will also target aspiring musicians and children looking for music lessons taught by industry veterans. No matter the customer, Musicians First Studio will deliver the best communication, service, and professionalism.

Management Team

Musicians First Studio will be owned and operated by Michael Smith. Michael is a graduate of Tennessee University with a degree in music. He has over ten years of experience working as a manager for another local music studio. Michael will be the company’s chief executive officer. He will oversee the recording/production process, music equipment, and studio staff’s activities.

Michael has recruited his former administrative assistant, Jessica Garcia, to be the company’s chief operating officer and help oversee the studio’s operations. Jessica will handle the day-to-day operations, including budgeting, scheduling, client relations, and logistics.

Michael and Jessica have recruited an experienced marketing director, John Brown, to become a member of the Musicians First Studio management team. John is a graduate of the University of Washington with a bachelor’s degree in sales and marketing. Michael and Jessica rely on John’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Musicians First Studio will be able to achieve success by offering the following competitive advantages:

• Skilled team of music production technicians and veteran musicians who will work one-on-one with clients to reach their individual music goals whether they’re looking to record a new album or learn a new instrument.
• Musicians First Studio is one of the only studio’s in the area that offers a wide range of services for musicians of all skill levels and goals.
• The company offers competitive pricing and discounts for referrals.

Financial Highlights

Musicians First Studio is seeking $800,000 in debt financing to launch its music business. The funding will be dedicated towards securing the studio and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Studio build-out: $340,000
• Music equipment, supplies, and materials: $280,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Musicians First Studio.

Company Overview

Who is musicians first studio.

Musicians First Studio is a newly established music company in Nashville, Tennessee. Musicians First will be the first choice for aspiring, novice, and experienced musicians in Nashville and the surrounding communities for its full-suite of professional services provided by industry veterans. The company will provide a wide range of services including recording/production, music lessons, artist management, and marketing for new musicians.

Musicians First Studio will be able to guarantee high quality production thanks to the latest and most innovative music technology operated by expert music production technicians. The company’s team of highly qualified professionals experienced in music, production, and marketing will manage the suite of services offered at the studio. In addition to customized services for musicians, customers will be able to book studio time that comes with use of equipment by the hour.

Musicians First Studio History

Musicians First Studio is owned and operated by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and vendor relations.

Since incorporation, Musicians First Studio has achieved the following milestones:

• Registered Musicians First Studio, LLC to transact business in the state of Tennessee
• Has identified an ideal location for the studio that is available for lease
• Reached out to numerous contacts to include local musicians, production technicians, and venue managers to help spread the word about the new studio
• Began recruiting a staff of musicians, music instructors, production technicians, marketing experts, and office personnel to work at Musicians First Studio.

Musicians First Studio Services

Industry analysis.

The global music industry is an estimated $60B market and is expected to grow by 8% by 2026. The broad music industry can be categorized into three primary segments; recording, live music, and music publishing. In the United States, the recording segment generated approximately $8B in revenues last year, while the live music segment brought in an estimated $9.5B, and the publishing segment totaled $1.8B. A majority of revenues generated in the recording segment come from streaming (28% of total industry revenue), with digital downloads and physical media coming in much lower (6.7% and 7.5% respectively). Revenue for the live music segment is generated primarily through ticket sales (37.1%) and sponsorships (10.3%). Publishing accounts for approximately 8.9% of total industry revenue.

Music streaming is one of the most significant trends in the industry, with the number of Americans who pay for streaming subscriptions at approximately 82.1M, up from 7.9M in 2014. Another trend is the emergence of independent artists and small record labels. These groups are earning more revenue than in years past and their percentage of revenue increase year over year is growing faster than that of larger record labels. With more options open to them when it comes to where and how to get their music out to consumers, artists, managers, and record labels have more opportunities for success than ever before.

Customer Analysis

Demographic profile of target market.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Musicians First will primarily target the following customer profiles:

• Novice-to-experienced musicians looking for recording/production services
• Aspiring musicians of all ages looking for music lessons
• Musicians looking for artist management, booking, and representation services

Competitive Analysis

Direct and indirect competitors.

Musicians First Studio will face competition from other companies with similar business profiles. A description of each competitor company is below.

My Music Production & Management

My Music Production & Management is one of the largest commercial music studios in Tennessee. The company was established in 1997 and offers professional music recording and production services for local musicians. My Music Production & Management also handles the business management activities for musicians including marketing, booking, and legal representation services. The company is well known for providing high quality production for some of the top artists in the region and has been recognized in various publications and music industry associations for its outstanding work in the local music community.

Genre Music

Founded in 2018, Genre Music is a small music company catering to local musicians in Nashville, Tennessee and surrounding areas. Genre Music is owned and operated by a veteran musician who has over 40 years of experience in the music industry. The company specializes in artist branding, marketing, and representation in addition to its top notch recording services. Genre Music has worked with a variety of up and coming artists in multiple genres and has a loyal customer base of regular musicians who use the company’s services.

Retro Recording & Productions

Retro Recording & Productions is a trusted Nashville, Tennessee-based music company that provides superior production and recording services for Nashville and the surrounding areas. The company is able to provide a wide variety of recording, production, and post-production services using its state-of-the-art music recording equipment. Retro Recording & Productions serves local musicians and national musicians. The company prides itself on being the number one choice for classic sound produced through modern technology. Retro Recording & Productions also manufactures its own collectible vinyl records in limited quantities.

Competitive Advantage

Musicians First Studio will be able to offer the following advantages over their competition:

• The company offers competitive pricing on studio rentals and discounts for referrals.

Marketing Plan

Brand & value proposition.

Musicians First Studio will offer the unique value proposition to its clientele:

• Musicians First Studio provides a full suite of services tailored to the individual musician’s needs. Professionals are equipped to provide services for all skill levels from the aspiring and novice musician, the the industry veteran.
• The company’s studio is expertly designed for the clearest sound quality. The equipment is carefully selected to ensure the best sound possible.

Promotions Strategy

The promotions strategy for Musicians First Studio is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Musicians First maintains an active social media presence with regular updates and fun content to get customers excited about using the studio’s services.

Professional Associations and Networking

Musicians First Studio will become a member of professional associations such as the Nashville Music Association, American Music Educators Society, and the Tennessee Music Production Association. The leadership team will focus their networking efforts on expanding the company’s artist and vendor network.

Print Advertising

Musicians First Studio will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents advertising the services it provides.

Website/SEO Marketing

Musicians First Studio will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that Musicians First is able to provide. The website will also list information on the company’s events and featured artists.

The marketing director will also manage Musicians First’s website presence with SEO marketing tactics so that when someone types in a search engine “music company” or “music studio near me”, Musicians First Studio will be listed at the top of the search results.

The pricing of Musicians First Studio will be on par with competitors so customers feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for Musicians First Studio.

Operation Functions:

• Michael Smith will be the CEO of the company. He will oversee the music production technicians, production process, and the music equipment maintenance. Michael has spent the past year recruiting the following staff:
• Jessica Garcia – Chief Operating Officer who will manage the day-to-day operations, client relationships, scheduling, and logistics.
• Nancy Johnson – Chief Financial Officer who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• John Brown – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.

Milestones:

Musicians First Studio will have the following milestones complete in the next six months.

12/1/2022 – Finalize lease to rent the studio facility

12/15/2022 – Finalize personnel and staff employment contracts for the Musicians First Studio management team

1/1/2023 – Begin build-out of the studio, purchase equipment, and test the acoustics

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts for musicians, instructors, production technicians, and marketing professionals

3/15/2023 – Musicians First Studio officially opens for business

Financial Plan

Key revenue & costs.

The revenue drivers for Musicians First Studio are the fees charged to customers in exchange for the company’s services and fees charged to book studio time by the hour.

The cost drivers will be the overhead costs required in order to staff a music company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average hours booked per month: 120
• Average fees per month: $30,000
• Overhead costs per year: $640,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Music Business Plan FAQs

What is a music business plan.

A music business plan is a plan to start and/or grow your music business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your music business plan using our Music Business Plan Template here .

What are the Main Types of Music Companies?

There are a number of different kinds of music companies , some examples include: Recorded Music, Music Licensing, Live Music, Music Publishing, Music Production, Music Business Consulting, and Retail Music Store.

How Do You Get Funding for Your Music Business Plan?

Music companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

Music Business Plan: A Guide for Music Industry Professionals

Augur CPA helps entrepreneurial creatives gain clarity around their business finances.

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A music business plan is crucial for any music industry professional looking to launch or grow their business. It provides a snapshot of the current state of the business and lays out a clear growth plan for the next five years. This is essential for understanding where the business is at and setting achievable goals for the future.

Check out our article below to learn more about creating an awesome music business plan and get a template.

What is a Music Business Plan?

A music business plan is a comprehensive and detailed document that outlines the goals, strategies, and financial projections for a music-related business. Whether it's a record label, music production company, artist management firm, or any other music-related venture, a business plan provides a roadmap for success. It helps to attract investors, secure loans, and guide overall operations.

From market analysis and competitive research to marketing and distribution strategies, a music business plan covers every aspect of the business to ensure clarity, direction, and long-term viability. It is an essential tool for anyone looking to establish or grow a music-related business in the highly competitive and dynamic music industry.

Why is it important to have a music business plan?

A music business plan is crucial for an artist's success in the industry for several key reasons.

It serves as a blueprint for the artist's career, outlining their goals, strategies, and financial projections. This document helps attract investors by showcasing the artist's vision, potential for return on investment, and realistic plans for reaching their target audience.

A well-crafted business plan guides decision-making by providing a clear direction and framework for the artist's activities and investments. Furthermore, it defines the artist's brand, including its image, style, and target market, which is essential for standing out in the competitive music industry.

In summary, a music business plan is instrumental in attracting investors, guiding decision-making, and defining an artist's brand, making it essential for achieving success in the music industry. Therefore, having a solid and comprehensive business plan is crucial for any aspiring musician or band looking to establish a successful and sustainable career.

How to Fill Out Your Lean Music Business Plan

In this guide, we will walk you through the steps of filling out your lean music business plan, from identifying your target audience to mapping out your marketing and sales strategies. 

We'll be referencing sections of the US Small Business Administration's ( SBA ) lean business plan template . Despite its generality, it works as a music business plan template. 

Aspects of this guide relate to the traditional business plan, which we will discuss later in the article. 

Business identity

A business identity helps your business specify exactly what you offer. Both the single-page lean plan and the traditional plan place importance on your identity. Let's say, for example, you're a business-owning musician who provides audio for creatives in the media industry. Here's how your identity might look:

Our business identity revolves around providing high-quality music and sound effects for TV programs, film industries, commercials production companies, video game developers, corporations, and event organizers. 

Through the lean template, try to identify your business in under one paragraph. Then, using the traditional template (see below), expand on that identity. Things like your mission statement, which we visit later, are an aspect of this.

The problem you're trying to solve

All businesses are problem solvers. Record labels help musicians with distribution, while music teachers help provide the next generation of musicians with a strong foundation. 

Naturally, you might wonder how this applies to musicians. Just saying "entertainment" feels a bit weak. There are bands, like Rage Against the Machine, who make music to push a movement. But if you're not part of that crowd, what do you put?

So, think about why you got into music-making in the first place. Any professional musician should think about who their music appeals to and what they want people to feel when hearing their music. You can then say your music solves that problem in a cheesy reminder that you think about more than what shows up on your financial statements. 

If you don't want to get too corny, think about who your music will most appeal to. Then, you can say what your target audience is. Think of something like this:

Creating music for young men and women that will entertain them and inspire them to explore challenging topics.

This problem-solving might feel generic, but you'll know your fans and why you make music. So, stay focused on that.

Solution your business presents

Once you consider the problem your business solves, you need to state how you solve that problem. Again, this is much easier for music industry professionals who work in support roles. Music distributors solve the problem by having direct connections with other distributors, while music marketers help bands reach out to fans via multiple social media platforms. 

As someone who makes music, your solution is the creation of music. So, ask yourself how the creation of your music solves this problem. Here's an example based on our situation above:

Our band writes music that delves into mental health struggles based on personal experiences and how we overcame them.

You might think that doing this as a musician feels silly, but think of it as a reminder. One of the reasons famous musicians like David Bowie and Tom Morello were so successful is focusing on how their music helps people. 

Competition 

Competitive market data varies depending on the territory you plan to target. For musicians and bands, this might involve bands in the local area and those in future touring locations. For musicians, the competition can also be a list of potential collaborators.

For everyone else not making music, other record labels and music production companies are just competition. Whether you can collaborate with them or not, you'll want to differentiate yourself from all the other options out there. Being another "me too" music business will make it easier to forget you. 

Using the lean small business plan, you'll want to stick this to two or three sentences. Be very general, knowing you can also expand using the traditional business plan. Here's an example of a made-up Tennesse company: My Music Production & Management: 

The competitive landscape for music production companies in Tennessee includes My Music Production & Management, Genre Music, and Retro Recording & Productions. My Music Production & Management offers a wide range of services, including music production, artist management, and music distribution. 

Revenue streams

Revenue streams come from various sources. A business plan reminds you of those sources so you can stay focused. As a musician, your income can come from many sources. Below is an example you can use under the lean business plan:

As a musician, my income comes from paid gigs, teaching music lessons, instrument repair services, and recording sessions. To ensure financial stability and growth, I plan to diversify my income by capitalizing on these different opportunities.

Your revenue streams will differ as a record label or other kind of music business. Like musicians, your revenue streams can vary. However, as a young business, you may specialize in specific areas. You might work on creating merch or distributing digital releases. 

Marketing activities

Marketing activities focus on how you plan on reaching out to different sources. For many new music businesses, this involves outreach through social media platforms. Here's an example of what you might include in your business plans:

Our marketing activities will primarily focus on building a strong online presence through social media and regional publications. We plan to utilize platforms such as Instagram, Facebook, Twitter, and TikTok to engage with our audience and share regular updates about our music and upcoming events. Additionally, we will work on developing a press kit to distribute to regional publications and media outlets to garner publicity and reach a wider audience.

Bands can create electronic press kits (EPKs) that are prebuilt for members of the media. This makes it easy for journalists and members of the media to share content about you, such as a new album release. You can also consider how much you might pay for advertising. Digital marketing activities like those above are the first choice, as this activity uses advanced targeting tools based on what people search for and their demographics.

Marketing traditionally focuses on the four Ps: product, price, place, and promotions. The first two Ps delve into your product line, which you'll learn about later. Promotions indicate the type of marketing you choose, and Place usually refers to the platforms your target audience uses. 

The lean business plan gives you a simple overview of your likely expenses, which can be detailed in your longer business plan. Part of these expenses include music taxes. Read our guide on music taxes for more details.

Expenses vary depending on the type of music business you run. You could pay to rent a studio for recording sessions, purchase recording equipment, access manufacturers, or pay for other expenses. These expenses can result in tax deductions .

Here's an example of what your expenses section might look like:

To get my music business up and running, I need to budget for several key expenses. Studio time would be required for recording and producing music, averaging around $50-$100 per hour. I'd also need to allocate funds for engineering talent, which could cost between $50-$200 per hour, depending on experience. Transportation costs for getting to and from recording studios or performance venues should be factored in, estimating around $200-$500 per month.

Legal fees for business formation are also deductible. When listing your expenses and considering deductions, ask yourself what your type of company would normally deduct. Reach out to Augur CPA if you'd like a comprehensive review.

The key roles section provides a list of high-ranking authorities in the business and explains the responsibilities and functions those roles bring to the business. Here's an example of what that might look like in your business plan:

1. Chief Executive Officer (CEO): Responsible for overall strategic direction and leadership of the organization, making key decisions and representing the company to the public and stakeholders.

2. Human Resources Department: This department is responsible for recruiting, training, and managing employees, as well as ensuring legal compliance and promoting a positive work environment.

3. Marketing Department: Responsible for promoting the organization's products or services, conducting market research, and developing marketing strategies to attract and retain customers.

4. Finance Department: This department is responsible for managing the organization's financial resources, including budgeting, accounting, and financial reporting.

5. Operations Department: This department is responsible for overseeing the organization's day-to-day activities, optimizing processes, and ensuring efficient production and service delivery.

As a new business, you might not need all of this detail in your roles. A new business owner wears many hats, handling all of this themselves.

As your business grows and you fill roles like those above, you'll want to create an operating agreement . Operating agreements dictate the roles, holding groups responsible for their actions. This can dictate things like voting rules, which are vital when making high-risk business decisions that require more input.

Your milestones tell readers, yourself, and business partners of the important milestones you've already taken or plan to take. Your lean business plan is a single sentence telling people what you generally plan to do. Larger business plans might look something like this:

Milestone 1: Lease Finalization

- Task: Negotiate and finalize the lease agreement for the studio space

- Deadline: by May 15th

Milestone 2: Personnel Contracts

- Task: Draft, review, and finalize contracts for hired personnel

- Deadline: by May 20th

Milestone 3: Studio Build-out and Equipment Purchase

- Task: Begin construction and build-out of the studio space, purchase necessary equipment

- Deadline: Construction to be completed by June 30th

Milestone 4: Networking and Marketing Plan Implementation

- Task: Develop and implement a networking and marketing plan to attract clients

- Deadline: Marketing plan to be in place by June 1st

Each milestone outlines specific tasks and deadlines to ensure a smooth and successful opening of a recording studio. A musician or distribution company should take a similar approach, focusing on initiatives that help them grow their business.

Filling Out Longer, Traditional Business Plans

The SBA's traditional business plan, which you can find here , is a multi-page document. It's an expanded version of the lean business plan, which you can provide upon request. When applying for business loans or bringing on business partners, this plan can help communicate your vision.

Traditional business plans might use a bit more jargon, like executive summaries and mission statements. Below, you'll learn a bit more about some of the more complex aspects of writing your detailed business plan.

Executive summary

Executive summaries summarize the main points of a business plan. The summary points include the purpose of the business, the business name, the target market, your business location, and how your business solves its target audience's problem. Here's an example you can use for inspiration:

The Executive Summary of my music business plan showcases my artist bio, mission statement, and unique selling proposition. As a musician, I bring a unique blend of classical training and modern influences, with a strong foundation in jazz, pop, and R&B. My mission is to create music that transcends genres and connects with audiences on a deeper level, aspiring to inspire and uplift through my art.

My unique selling proposition lies in my ability to blend diverse musical styles and deliver powerful, emotionally resonant performances. I have achieved recognition in local music scenes, including winning the Best New Artist award at a prominent music festival. My aspirations include reaching a global audience and collaborating with industry-leading producers to create music that leaves a lasting impact. What sets me apart from others in the industry is my unwavering dedication to authenticity and artistry, always prioritizing substance over trends.

For bands and musicians, the executive summary is a great way to showcase your passion for music. Notice the "unique selling proposition," which indicates how you plan on differentiating yourself compared to other companies.

Other companies, like music publishing companies, might focus a little less on the creative aspects of their business. An executive summary can differ slightly between companies. However, if you're new, start with the template until you get comfortable writing these plans.

Company description and mission statement

Your company description, based on the traditional plan, includes the mission statement, members, legal structure, and location of the company. It might also include the executive summary.

Here's an example of the description for a made-up company: SoundWave Entertainment:

Our company, SoundWave Entertainment, is structured as a Limited Liability Company (LLC) and has been in business for ten years. We specialize in providing top-quality live music entertainment, event production, and artist management services. Our diverse range of offerings includes wedding bands, corporate event entertainment, and music festivals. Our customer demographics range from engaged couples looking for the perfect wedding band to event planners seeking unique and memorable entertainment experiences. In the past decade, we have experienced significant growth, expanding our roster of talented artists and achieving a strong presence in the events industry. Our primary business goal is to continue providing exceptional musical experiences and to further expand our reach in the entertainment industry.

The description is simple enough, but the mission statement is arguably the most important aspect of your business plan. It's a few sentences long but shares the overall mission of your company, dictating where it goes and how it makes decisions. Mission statements are emotionally driven and connected to the morals and heart of the company's stakeholders. Here's how it might look:

At SoundWave Entertainment, we are committed to delivering unforgettable musical experiences and fostering the growth of talented artists. We strive to exceed our client's expectations by curating exceptional live entertainment and providing a platform for artists to showcase their skills. Our goal is to leave a lasting impression through the power of music, creating moments that inspire and connect people.

Market conditions and research

The traditional business plan offers a bit more room for reviewing your market conditions and researching your competition. Doing your own research helps you understand the market. Sharing your research on a business plan provides proof of your knowledge of market conditions. Here's a short example of market conditions:

The current market conditions in the music industry are characterized by several industry trends, including the shift towards streaming services, the resurgence of vinyl records, and the increasing importance of live performances for artists' revenue. Consumer behavior has also changed significantly, with more music fans opting for subscription-based streaming services over traditional album or single purchases. Key competitors in the industry include major streaming platforms like Spotify and Apple Music, as well as record labels and live event promoters.

Additional sections of your business plan include a detailed description of your customers, how your company outperforms the competition, and regulations that might impact your company.

Regarding regulations in the music industry, it helps to have a general understanding of the Digital Millennium Copyright Act ( DMCA ), fair use , and current communication laws. Knowledge of these laws or working with a music attorney can help you with this aspect of your business plan.

Service line and pricing structure

Your service line includes a complete list of your services and their costs. For musicians, this might include gigs, music lessons, and anything else you do to advance your career in music. It then breaks down the pricing of your services, including some potential for how that pricing can flex.

Services can vary heavily depending on your company and the services you offer. When you first start your business, you might specialize in a few areas. One milestone could be expanding to include additional features, like a record company offering email marketing services.

The service line section also includes your product lifecycle. For example, albums tend to make more money during their first year of release, and your lifecycle dictates how long you might make albums. If you go on a tour during the album, you might stop creating new albums or merchandise sales during this time. 

Service line information can also include information on intellectual property rights and how your band and albums will be copyrighted. You can also work to trademark your company (or band) logo.

Marketing, sales, and growth strategy

While your marketing research section details information about the market and industry, your marketing, sales, and growth section dictates how you plan on reaching target customers. The lean plan mentioned above briefly addresses this area.

The three areas you'll want to consider are your growth strategy, how you want to communicate with customers, and how you plan on selling your products.

Let's say you plan on creating your own Shopify e-commerce store for your business, which is a huge investment. This means your growth strategy, product sales, and customer communications will wrap around this tool. If you want to start simpler, mention how you plan on talking with fans and setting up merch tables at local shows.

Here, you'll see some examples of how you could write this section:

Our music business aims to market, sell, and grow by implementing a combination of online and offline strategies. Our marketing efforts will include targeted social media campaigns, SEO optimization for our website, and collaborations with music influencers and bloggers. We will also explore opportunities for live performances, partnerships with local venues, and utilizing traditional advertisement methods.

To drive sales, we will offer unique packages for our music services, including special promotions for first-time customers and loyalty rewards for returning clients. Our pricing strategy will be competitive while still maintaining the quality of our services.

In terms of customer retention, we will focus on delivering exceptional customer service and providing personalized experiences for our clients. Our unique selling proposition lies in our ability to offer customized music solutions tailored to different occasions and preferences.

Moving forward, our plans for growth and expansion include branching out to new markets and offering additional services such as music production and event management. We will also invest in building brand loyalty and expanding our customer base through strategic partnerships and collaborations within the music industry.

Why Should I Care About A Business Plan?

A business plan is a crucial tool for any musician or music industry professional looking to advance their career in the music industry. It serves as a roadmap for your career, helping you set goals, make strategic decisions, and stay on track for success.

One of the most significant benefits of having a business plan in the music industry is its ability to attract investors. A well-thought-out plan demonstrates to potential investors that you are serious about your music career and have a clear direction for success. It outlines your financial projections, marketing strategies, and potential for growth, making it more likely for investors to see the value in supporting your music endeavors.

Additionally, a business plan guides decision-making by providing a framework for evaluating opportunities and making informed choices. It forces you to consider all aspects of your music career, from marketing and promotion to touring and merchandising, ensuring that you have a comprehensive strategy in place.

Furthermore, a business plan helps define your brand identity and outline your unique selling points, target audience, and marketing message. This is crucial in the music industry, where standing out and connecting with fans is essential for success.

To learn more about how taxes can apply to a financial plan for your business, contact Augur CPA today .

This content is for informational purposes only and does not constitute legal, business, or tax advice. You should consult your own attorney, business advisor, or tax advisor regarding matters mentioned in this post. We take no responsibility for actions taken based on the information provided.

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Musical Instrument Store Business Plan

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Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

An exciting opportunity currently exists for a full service musical instrument retailer in Albuquerque. Although there are a number of musical instrument retailers in this city of over 500,000 people, there are currently only three very small school band and orchestral instrument dealers; these stores have small selections and short hours. At the other end of the spectrum (stores with a more guitar and electrical focus), big chains are competing on prices at the expense of customer service.

MusicWest will offer the buying public a superior shopping alternative, with a huge selection of school band and orchestra instruments, plus guitars, keyboards and accessories, at reasonable prices. Our products will be supported by skilled repair services and a knowledgeable and friendly staff, as focused on educating the customer as on closing the sale. We will exploit our competitors’ weaknesses by offering ongoing music community events, from free lessons, to music clubs, to after-sale follow up to turn one-time shoppers into lifelong customers. Our unique marketing schemes include “ You Play, We Pay ” (whereby a portion of instrument sales and rentals are donated to local school band programs) and “ 100% Money Back ” trade up programs, where customers receive 100% of their purchase price toward upgrading their instrument within one year.

MusicWest will focus on the novice, hobbyist, and semi-professional musician; these three groups are seeking value, customer service, and knowledgeable assistance in making what can be a rather significant purchase. MusicWest will gain a reasonably large percentage of market share in a short period by immediately differentiating ourselves from our competitors. We will establish our branding with our superior service and selection, the excitingly modern look of our retail environment, our “hands on” merchandising approach, and a series of ads with our motto: Stop Dreaming, Start Playing . Once in the store, our clients want to come back often for the special treatment they receive here and nowhere else.

The co-owner of MusicWest, David Moore, has over seven years of experience as the store manager at two successful local music stores. He has seen firsthand where opportunities are missed through lack of follow-through or careful planning, and knows what local customers are looking for.

Based on his experience at other local music stores, David Moore conservatively projects sales of over $500,000 in the first year, increasing to almost $700,000 by year three. We will start generating a profit in September, and profits will increase steadily thereafter.

Although MusicWest may not become the biggest, our intention is to become a “ Must-Shop Destination ”  for those looking to buy a new or used musical instrument in Albuquerque!

1.1 Mission

MusicWest provides musical instruments to the community.  We separate ourselves from our direct competitors by paying intense personal attention to our customers, and educating our clients about the products they need or desire before, during, and after the sale. We offer creative programs to reward customer loyalty, and we provide on-site repair services for the items we sell. We consider our staff our partners and insist they prosper equitably with the growth and success of the company. We will have the largest selection of School Band and Orchestral instruments  in New Mexico, and will use that advantage to separate ourselves from the competition.

1.2 Keys to Success

• Establish a well-respected music lesson department and start a rapport early with school band and church music leaders.
• Offer extended hours to serve a larger portion of the buying public than our competitors do.
• Educate the buying public by merchandising our products with informational/tutorial signage and literature, and by backing that up with knowledgeable salespeople.
• Offer the services of a full time repair department to our client base.
• Continually modify the product and service offerings to stay on the leading edge of technology within our market.
• Exploit the many weaknesses of our local and national competitors to differentiate ourselves from them.

1.3 Objectives

• Gain 25% of the local market share within the first three years.
• Maintain a minimum gross profit margin of 40%.
• Create a hands-on, educational approach to musical instrument merchandising.
• Target the large number of school band instrument customers who currently bypass local music stores for catalog or internet sales, due to poor service, selection and prices.
• Aggressively target the public school system and local religious organizations.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

MusicWest is a retailer of musical instruments and their accessories, located on Albuquerque’s Westside. MusicWest will differentiate itself from its direct competitors by marketing the store’s educational approach, and one of the most hands-on store layouts of its type in Albuquerque. In addition, we will offer a wider selection of products, and more services to reward customer loyalty, than our competitors.

2.1 Start-up Summary

Start up costs will cover all inventory, site modification, website creation, necessary equipment and the necessary capital to fund operation of the business through the first year. In particular, we foresee a need for substantial initial working capital with a large purchase of initial inventory to sufficiently maintain and grow the business. We intend to secure financing through conventional lending sources or with a (7A) conventional SBA loan guarantee. The balance of the funds will be covered by owners investment.

2.2 Company Locations and Facilities

We have chosen a site at Ladera Shopping Center on Coors Blvd. near I-40 for several reasons:

• Close proximity to Interstate 40.
• Safe and plentiful parking area.
• Near high-traffic tenants such as Home Depot and Staples, and anchored by a WalMart Supercenter.
• Beneficial demographics: over 150,000 households within a 5-mile radius, 85,000+ cars per day on the two cross-streets, and no direct competitors within 10 miles.

All of the above qualities are consistent with MusicWest’s goal of providing a fresh approach to musical instrument retailing. We are looking at leasing approximately 3,500 sq.ft. of space, which will allow sufficient room for up to six lesson studios, a repair area and necessary storage and office space. We expect usable selling space to end up being around 2,400 sq.ft.

2.3 Company Ownership

MusicWest will be a partnership. The principles of the business are Kayle and David Moore. Kayle Moore will assume the position of President/Office Manager, while David Moore will assume the duties of Store Manager.

Products and Services

We will offer a “state of the art” music lesson program featuring top degreed instructors, as part of our overall focus on educating our customer base. This program will include private and group lessons, as well as outreach to local schools. We will also develop music clubs geared to children and seniors, to further serve our local community.

Although offering school band and orchestral instruments, service and lessons will be our main competitive advantage, guitars will remain the primary revenue producer for musical instrument stores for the foreseeable future.

3.1 Product and Service Description

MusicWest will offer several name brand instruments such as:

• A large selection of band instruments by Selmer/Bach, Yamaha, and Leblanc with an emphasis on the intermediate level instruments.
• Electric and acoustic guitars including Albuquerque exclusive lines by Fernandez, Suzuki, Wechter and other nationally known brands, such as Takemine, Ovation and Martin.
• Amplifiers by Crate, Kustom, Traynor and Hiwatt to support our guitar sales.
• Keyboards by Yamaha, Suzuki and Korg.
• Sound reinforcement products will be exclusively Yorkville. We will be the only dealer in New Mexico, and will offer a rental program for local bands and schools.
• A very well stocked accessory department to support the above items. A recent Music Trades article found that 80% of the buying public considered this the most important reason they buy from a musical instrument dealer.

In addition to complete repair services for our products, we will emphasize upgrades and customization items to develop other income streams our competitors have not considered. When carrying a brand name item conflicts with giving the customer the best all-around value, we will always pursue the product that best suits our client’s interest.

3.2 Competitive Comparison

MusicWest is different from its competitors in several key areas:

• Our three largest competitors do not carry band and orchestral instruments, one of our primary focuses. 
• We offer services to support our products, and most of our competitors sell just the products themselves.
• MusicWest will take full advantage of “name brand recognition,” an element that most dealers overlook and under-advertise.
• MusicWest will capitalize on our competitors’ weakness in the accessory category by keeping ours well-stocked.

Musical instruments cannot be fully enjoyed without knowledge and experience. Unfortunately, we cannot sell these products at a higher price just because we offer repair and instructional services; the market does not support dealers who have tried this. We must offer varied services and product mixes and be competitively priced as well, in order to survive in this new economy. In addition to educating our customer base, we are committed to providing the best product value.

Accessories are the highest profit center for the store and we have to expose our competitors’ weakness in this area if we wish to expand market share from day one of operations. Competitors that do not stock the necessary accessories will send their customers to competing stores, from which customers may not return. We must keep our accessory department well-stocked to take advantage of our competitors’ flaws, and avoid this pitfall ourselves.

3.3 Fulfillment

When feasible, MusicWest will buy its inventory directly from the manufacturer in order to obtain the lowest price possible. We will make use of one or two jobbers that sell a large variety of small goods that would be impractical to obtain directly. We will frequently compare prices of these distributors to ensure we are getting the very best price possible per item. That said, MusicWest will always put the quality/value of the product we pass on to the consumer ahead of price. The majority of our competitors buy by the piece rather than by the box or case lot. We intend to buy our key , best-selling items in bulk, to obtain a pricing advantage over our direct competitors. Common discounts in the industry consist of free freight, repayment term incentives, additional free merchandise or incremental percentage discounts on quantity purchases.

Although we will buy key items in bulk when practical, we will also remind ourselves that sometimes a better deal for the sake of lower prices is not the best move for our bottom line.  We should not risk over-stocking new or unproven merchandise just to get a small advantage in price over competitors.

3.4 Technology

The Music Industry is currently riding a trend toward high-tech electronics in several product areas, most notably in guitar related effects and multi-track recording hard/software. Sales increases in these areas are due to the slashing of the price barrier in the home recording market, and the pace at which new products become obsolete. This high tech boom has increased the M.I. market substantially.

Digital keyboards are also seeing increased market share as technology becomes more accessible. These units offer families state-of-the-art sounds and capabilities without a huge learning curve. For instance, digital piano sales are currently the fastest growing segment of the total piano market in the U.S., and sales have increased 450% over the last ten years.

One downside of technological innovations is that prices in this industry are dropping sharply, lowering revenues per unit. It is therefore essential that the Musical Instrument retailer of today bundle products together as packages, to increase profits and build sales.

3.5 Future Products and Services

MusicWest will rotate its stock so that new products are always available. The store will balance what is popular today with what will be popular tomorrow. We will institute the following programs in order to ensure expansion of the store:

• We hope to become the only store in New Mexico to institute the “Weekend Warrior” program, sponsored by the National Association of Music Merchants (N.A.M.M.). This program is responsible for bringing back into the fold many who had given up on music. The program has successfully raised income opportunities for the stores who have implemented it.
• By the end of the first year of operations, we must place major emphasis on developing our own school band instrument rental program. This rental program will allow us to insulate ourselves from any large-scale competitors that might locate here, and generate consistent year round high profit income opportunities.
• MusicWest will take advantage of the internet as a major tool for passing along information about our store and products to potential and current clients. We will maintain this site as a local site, geared toward information and service. We believe that placing a sales engine in our website would only lower our initial profit margin and limit sales opportunities, so we will avoid this for now.
• We hope to start music clubs geared to children and seniors. These will be clubs that we can support with little cost, but which can generate additional sales not actively targeted by our competitors.
• In the long term, there are many avenues we can explore, such as traditional piano sales, professional sound installations, and service contracts with the public and private school systems.

Market Analysis Summary how to do a market analysis for your business plan.">

Key sales areas related to our business model are:

• Fretted instruments $903.2 million.
• School Band Instruments $532.2 million.
• Sound Reinforcement $819.9 million.
• Printed Music $511 million.
• Electronic Keyboards $200.7 million.
• General accessories up 4.8% in retail dollars shipped, to $364.3 million.

In the musical instrument industry, consumers are looking for wide selections, prompt and knowledgeable service, good product value, and music lessons to further their understanding and enjoyment of the products. They prefer to find stores offering these benefits through word of mouth.

The musical instrument market has recently been driven by a number of low-cost, high-selection Internet and mail order companies, which has caused prices to level out, by giving consumers comparison shopping at their fingertips. In response, various large chains have tried to offer similarly wide selections in their physical retail spaces, at the expense of staff training and customer service. However, the high-profile advertising generated by these chains has rippled down even to small stores, as more and more musicians at all levels start to seek out the missing elements of these sales model. MusicWest has the experience, prices, and focus on customer service to fill these gaps.

4.1 Market Segmentation

The following market segmentation table is based on the finding that roughly 46% of the general population are “musicians” of some form or another. Within that group, there are different segments, ranging from professionals, to semi-professionals, to hobbyists and novices. It is very difficult to make a single demographic profile of the typical consumer for this industry, as within each instrument or client type, the figures for age and income will vary drastically. The market analysis numbers show the 46% of the local population around MusicWest who will serve as our potential customer base.

Listed directly below are the latest industry figures relating for New Mexico in total Musical Instrument sales:

4.2 Target Market Segment Strategy

We intend to target musical novices , hobbyists , and semi-professionals . These groups include the largest percentage of musicians, with the greatest amount of disposable income. These market segments can generally be approached with the same marketing techniques, and can be very loyal when treated properly.

We have chosen not to make professional musicians our focus for several reasons. Professional musicians require a great deal more attention and require much less profitable pricing, and they prefer a more exclusive shopping environment away from the novice consumers (ego).

4.2.1 Market Needs

Our target clientele, though varied, can be approached in very much the same manner. Their most important market needs are:

Most musicians need support and service. The instruments that we sell can be difficult or impossible for end users to service. Potential clients tend to seek stores that can fulfill these services through word of mouth referrals and/or direct shopping experiences. These musicians come back time after time if they feel they are getting a fair deal.

One of the most common complaints from musicians in our market is the high turnover of sales staff at other dealers, and the resulting inconsistencies in their shopping experiences from day to day. Consumers like to see the same faces on each visit and this business is one that thrives with the personal relationships salespeople develop with their clientele.

In addition, female customers have traditionally been treated poorly by this male dominated field. By reversing this trend, reinforced by ongoing sales training and with unbiased customer interaction by our sales staff, we can further exploit the weaknesses of our top local competitors.

4.2.2 Market Trends

The musical instruments market is currently being driven by mail order and internet retailers. Although such companies are known for low pricing and large selection, their prices have bottomed out at a level the smaller stores can offer, while still remaining financially sound. Retail mega-stores such as Guitar Center and Sam Ash are growing at a steady pace, but appear to be affecting the market in a positive manner. Their high level of advertising drives in more consumers, who in turn will seek out other music stores for comparison-shopping, and for the music lessons and personal service not offered by most of the mega-stores.

Consumers increasingly expect the music stores they deal with to offer a clean, high-tech and comfortable shopping environment, and more personal service to explain the ever-increasing levels of technology in musical instruments. Consumers generally want all this and expect to see prices consistent with the mega-stores. In short, they want a one-stop shopping experience. We have shopped these major chain stores, and find that they have poor customer service, and that their average employee is under-trained in sales and technical aspects unique to this industry. Another trend that benefits this industry is that as production moves to other nations such as China (due to lower cost of manufacturing), prices go down and units sold go up, increasing revenue opportunities.

4.2.3 Market Growth

The musical instrument market has seen steady growth over the last ten years, with revenue increasing from $4.2 billion in 1995 to $7.1 billion in 2000. 2003 sales were down to $6.9 billion, still the second highest year in industry history. These numbers were reached in spite of the difficulties with the economy and turmoil on Wall Street. The most dramatically declining product was acoustic pianos, a product we are not interested in at the present time. The market had seen steady growth of around 4% over the last few years, despite other key industries being down (for example, automobiles down 7%, personal computers down 3% and new home construction down 1.8%). In addition, 10-year growth patterns for the last decade show incredible gains in key instrument categories. We expect these trends to continue as the economy strengthens.

4.3 Service Business Analysis

Musical instrument retailing is accomplished through a variety of outlets:

• Local Musical Instrument retailers : Storefront reseller with less than 10,000 square feet. These retailers usually carry one to three main brands and offer a mix of instruments and accessories. Occasionally these will be specialty stores, offering only one type of instrument for sale (i.e. drums, pianos or band instruments).
• Chain stores and Superstores : These include major chains such as Guitar Center and Sam Ash. These stores are always bigger than 10,000 square feet and offer greater selection of instruments. These stores offer sub-standard walk-in service and generally cater to people looking for products in boxes with aggressive pricing and little support.
• Mail Order : The market is increasingly served by mail order businesses that offer aggressive pricing of boxed product. For the purely price-driven buyer, who buys boxes and expects no service, this can be very attractive. These dealers also serve as an educational tool by displaying items that most local dealers do not stock.
• Others : These include direct sales by manufacturers and the increasing number of Internet sites that are mainly price driven. EBay has also become a player in this category.

4.3.1 Distributing a Service

Musical instrument re-sellers are supplied by a variety of means:

• Direct purchases from manufacturers – generally the best price, but higher minimum orders.
• Purchases from national distributors – large selections, good prices.
• Purchases from regional distributors – small selection, average pricing.
• Specialty distributors/mfg. reps – good to great pricing based on yearly volume.

4.3.2 Competition and Buying Patterns

Consumers expect to walk into a clean, well-stocked shopping environment. The consumers do shop between stores, as buying a musical instrument is a big purchase for most. Price tends to be a huge influence on most musical instrument buyers; if they feel your pricing is out of line with the market they will usually walk right out. On the other hand, if they feel your price is in line with the market they tend to look to what else your store offers, such as lessons, repair facilities, knowledgeable staff, etc. Growing percentages of customers are price-driven only, and want to be handled in a direct and efficient manner without lengthy price negotiations. Accessory buyers tend to find the store closest to their home or place of work for the sake of convenience.

4.3.3 Main Competitors

There are several local retailers that will compete with us on some level. In the following segments, we will attempt to give a consumer view of the main competitors, from largest to smallest, and a brief description of the others. For school band instruments, our two main competitors are Music World and Baum’s Music, and for guitars and amps Marc’s Guitar and, to a lesser extent, Guitar Center and Grandma’s Music and Sound. Grandma’s and Guitar Center are the two largest stores, but they do not sell school band or orchestral instruments. There are only three band instrument purveyors in Albuquerque, and all are small-scale operations.

4.3.3.1 Marc’s Guitar Center

Marc’s Guitar Center, 2324 Central Avenue SE, Albuquerque, NM 87111 

Hours Mon-Fri: 10-6 | Sat: 10-5:30

Marc’s Guitar Center is a small shop catering to beginning players. This store offers a very limited selection of electric and acoustic guitars and amplifiers at generally average market prices. The store has two full-time teachers and its proximity to the University of New Mexico is a prime factor in its success. Marc’s does only small local advertising in its general vicinity and relies on the yellow pages and word of mouth for its expansion. The store is in its 25th year of business. Although the location is its greatest asset, many people do not like to visit the university area, due to its exaggerated reputation for high traffic and crime. The store carries some name brands and a few “B” brands.

4.3.3.2 Music World

Music World of Albuquerque, 7017 Menaul NE, Albuquerque, NM 87110

Hours Mon-Sat: 9-6

Music World is a full line retailer going through severe changes. Three years ago, Don Johnson, the owner of Music World, bought the two King Music Stores that had been in Albuquerque since the 1950s, and then opened a second Music World location in Santa Fe around the same time. Within one year’s time he had 100% employee turnover at the King locations, and as of this plan he has closed all three stores and moved his last remaining Music World store into the old King Music building on Menaul. The store carries a few name brands augmented by basic accessory lines. The King Music stores, at their peak, were generating approximately $1.8 million between the two locations, but sales had fallen off by more than half when Mr. Johnson purchased them. The stores have always had the reputation for high prices and have always pushed the idea that they provide more service than most. In fact, the stores offered little more service than one normally expected to receive. Music World is extremely out of date in their sales and marketing techniques, and is on the declining slope of technology. These stores sell basic items available anywhere. The store recently lost its largest piano line (Baldwin/Wurlitzer). As of the date of this plan, Music World is experiencing severe cash flow problems and is in litigation for discriminatory employment practices with former employees. A second lawsuit has been filed by his former landlord for damages done to the premises.

4.3.3.3 Other Competitors

The following are additional but smaller competitors:

Lesman’s Music – Specializes in dj and recording gear and rentals. Lesman’s recently downsized from a full line retail operation. They have a very poor reputation but still fulfill a need to the community. The store recently moved to a new location that, oddly, has no storefront parking.

Baum’s Music – School band instruments only. They have a good reputation and loyal clientele. Baum’s offers instrument rentals. The store primarily stocks a few entry-level instruments and has a large repair department.

Rio Rancho Music – School band instruments only. They call on school band directors as a means to drive the business. They offer rentals but have a very poor reputation in the community. The store has been for sale for over five years.

Encore Music – Very small retailer that specializes in vintage gear and some new guitars and amps. They have a decent reputation. They do some minor repairs. This store is rumored to be having cash flow issues.

Robertson’s & Sons – Specializes in orchestral instruments. The store has average pricing on most items. They have a very good reputation and are world renowned for their repair department.

Music Go Round – Franchised used musical instrument dealer.

Apple Mountain Music – Folk instruments are their focus. They offer music clubs on ethnic instruments; open part time.

Studio D – A pawn shop/music store; some new, mostly used, gear.

Luchetti Music – Recently out of business; was a drum specialty store.

Mail order catalogs : There are several mail order providers on the national scene. The biggest of these is Musician’s Friend (owned by Guitar Center ) out of Medford, Oregon. These low cost competitors drive the market. They have large inventories and offer all of the latest products to hit the market, usually before the local storefront dealers. These mail order shops are taking a large bite out of the local dealers’ market, but also contribute to educating the public on new items, and assist in growing the overall market on a national level. Service can be less than ideal, and shipping and handling fees are involved. Other catalog dealers are Venemans Music Emporium , American Music Supply , and International Musician’s Supply .

4.3.3.4 Grandma’s Music and Sound

Grandma’s Music and Sound, 800 S-T Juan Tabo NE, Albuquerque, NM 87123

Hours Mon-Fri: 9-6 | Sat: 10-5

Grandma’s Music is Albuquerque’s largest musical instrument retailer, with over 13,500 sq. ft.

This store is a pro shop that carries state-of-the-art technology within its pro audio department. Grandma’s carries guitars, drums, sound reinforcement, pro audio, dj and general accessories. The store stocks a huge amount of name brand gear. The store also has a large presence in the mail order and Internet sales areas. The store operates on aggressive pricing and high volume sales and is generating approximately $6 million in sales per annum. Grandma’s has a poor reputation with the average non-professional musician, in terms of customer service.  All customers are definitely not treated alike here. The store has repair facilities and a large staff, but again suffers from apathy toward non-professional shoppers. The stores pricing is adjusted to the knowledge level of the customer. The store in general is very well laid out and has state of the art lighting and displays, but is also very cluttered, with hazardous audio cables strewn about the floor where one might trip over them. As of this plan, Grandma’s is relocating to the Westside at the intersection of Paseo Del Norte and Coors Blvd. They have no plans to add teachers at the new location.

4.3.3.5 Guitar Center

Guitar Center 6001 Menaul Blvd. NE, Suite B, Albuquerque, NM 87110

Hours Mon-Fri: 11-7 | Sat: 10-6 | Sun: 12-6

Guitar Center is the nations largest musical instrument retailer with local space over 13,000 sq. ft.

Guitar Center is the nation’s leading retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment. They presently operate 128 Guitar Center stores, with 108 stores in 46 major markets and 20 stores in secondary markets across the U.S., including Albuquerque. Guitar Center is also the largest direct response retailer of musical instruments in the U.S. through its wholly owned subsidiary, Musician’s Friend, Inc. Its catalog and website, www.musiciansfriend.com, opened in Albuquerque in March, 2004.

4.3.4 Business Participants

Superstores are a growing presence in the larger markets. These stores benefit from national advertising, economies of scale, and volume buying, and carry the latest name-brand items. The aggressive pricing and selection of the superstores threaten the smaller local stores.

These local stores are generally mom and pop stores that are under-capitalized and suffer from an outdated management philosophy. Unless these stores can adjust to the superstores’ way of marketing and selling, they run the risk of increasingly losing key lines and eventually the core of their customer base.

Many small to medium companies who have adapted to this new way of doing business are increasing their business even with the superstores in their immediate vicinity. These smaller stores are able to offer services and support that the giants cannot, and have focused their stock in order to compete on a more level playing field. MusicWest intends to fit in this category.

Strategy and Implementation Summary

We will build strong relationships with our customers by providing stellar personal service and by exceeding our customers’ expectations on each visit. We will provide unique programs to reward them and gain repeat business. MusicWest intends to attract customers away from the mail order firms and bring them back to the local market. It will not be easy, but with a commitment to offer our customers an exciting educational environment along with up front, fair pricing, and excellent before and after the sale service, we can succeed.

5.1 Strategy Pyramid

Our main strategy is to out-serve the competition. We will accomplish this through strong personal sales/service, educational aspects, and proper product selection. Programs such as our “ 100% of purchase price trade up guarantee ” and our “ You play, we pay ” incentive programs will support these areas of concentration. In addition, we intend to build strong relationships with key consumers who have influence on the purchasing decisions of others, be they teachers, clergy or performing musicians. These individuals are important to the long-term success of the business. We will take advantage of the great clinics and concerts provided by our manufacturers and suppliers to bring excitement and energy to our customer base; we will also bring in local stand-out musicians. We will follow up on these events with call-backs and surveys to maximize their potential for future sales.

5.2 Value Proposition

MusicWest offers the novice to semi-professional musician the convenience of a wide selection, unique offers, experienced and reliable staff, and an educationally-focused community center, all in one location. These values more than offset our lack of usefulness to the professional musician market segment.

5.3 Competitive Edge

Our most critical competitive edge will be the way we treat our customer base. We must deliver greater interaction and satisfaction than our peers to every consumer from the start, in order to win their trust and earn their repeat business. Musical instrument consumers in the Albuquerque area are used to poor service and the apathy of local dealers. We must break this chain if we are to differentiate ourselves from the competition and excel. Our unique marketing plans and repair/customization services will also make us stand out from the crowd. We will have a multi-faceted plan of attack in place to accommodate our prospects from the beginning to the end of their shopping experience. We will also go a step further through our customer retention plans, by keeping our store in the minds of these customers after they leave, so they will want to return. None of our local competitors actively does this.

5.4 Marketing Strategy

The marketing strategy is as follows:

• Emphasize our superior service and support.
• Aggressively expose competitors’ weaknesses in order to attract new clientele.
• Key in on consumers who have been pushed out of the market by local dealer apathy.
• Educate our clients and respect their needs. Address these needs to keep them coming back.
• Exude our excitement and enthusiasm for music to our customers.
• Always, always differentiate ourselves from our competition.
• Consistently end all of our advertising with our motto, “ Stop dreaming, start playing ,” to make our advertisements easily recognizable to the public.

5.4.1 Pricing Strategy

The industry is going through a period of adjustment in regards to pricing. Many manufacturers have instituted MAP pricing (minimum advertised price) which has stabilized margins to some degree; however, they also sell at lower prices to the big box stores, which places smaller dealers at a distinct disadvantage. Consumers have also become more knowledgeable and continue to hunt for low prices. Our research has shown that many of these consumers buy for price, but then when they find the after-sale service lacking, look for alternative vendors, who may not have the lowest price but do have the service to back the sale. Novice buyers are generally more concerned with the value and quality of items they are buying than with price. MusicWest will address these issues with a multi-faceted plan on pricing.

Our plan requires that all of our merchandise be clearly marked with fair, street-value prices. These prices will be appealing to 85% of our customers. For those consumers requiring deeper discounts, our entire sales staff will be empowered to negotiate discounts if the sales representative deems it in the best interest of the store. Value adding and margin boosting merchandise will be bundled with low margin bestsellers to keep net margins acceptable. For all of this to come about, we must first approach and give thorough sales presentations to each potential customer that walks through our door, and we must interrogate them to find out any pricing issues that may affect the buying decision. Additionally, we must actively pursue adding non-traditional means of income to each major ticket sale; i.e. upgrades/customization, service contracts, rentals. This will allow us to not only gain our customers’ confidence, but will give us additional revenue streams the average Musical Instruments dealer has not even considered.

5.4.2 Promotion Strategy

MusicWest will target our desired customer base using Radio, Direct Mail, Newspapers and word of mouth. Radio is the greatest vehicle to reach musicians for the simple reason that the love of music is what drives us to become musicians. Direct Mail will target consumers who are budget or coupon minded. Newsprint reaches a large portion of the public, letting them see what we have to offer before making a trip to the store. Word of mouth is the one area we really hope to see develop, as a personal endorsement by a customer is worth more to us than what any advertisement can achieve.

MusicWest will always promote itself as an education oriented store, offering private and group lessons for all the instruments we sell. Our motto is “ Stop Dreaming, Start Playing! “

5.4.3 Marketing Programs

Our critical marketing program will be the grand opening, so we will place our initial advertising to give the greatest coverage. Our specific goal for the event is to create the biggest buzz the local music community has ever seen regarding a new store. The base budget we have set for this event is $5,000. We will have other events that will have no direct cost, such as performing bands and contests.

We will review our efforts by canvassing targeted ZIP codes to see if we achieved the desired coverage of our target markets. After the initial grand opening, we will have ongoing promotions that will coincide with the N.A.M.M. (National Association of Music Merchants) calendar of events. For example, N.A.M.M. has named April of each year, “International Guitar Month.” N.A.M.M provides sales kits to promote these events at little or no cost to the dealer. Different staff members will handle these sales on a rotating schedule, so that all of us are involved personally with the promotion of our store.

5.4.4 Positioning Statement

For our target clientele, including those who feel abandoned by the local retailers, MusicWest will provide a complete one stop shopping experience that will address all the needs of the aspiring musician. By offering repairs and unique marketing programs such as our “ You play, we pay ” and our “ 100% of purchase price trade up policy ” we can exceed the local client base’s expectations of what a music store can be. Unlike the vast majority of our competitors, MusicWest will more selectively stock products with value in mind and not just the lowest price, and we will always strive to provide the highest level of attention to our customers in order to gain their trust and purchasing power.

5.5 Sales Strategy

MusicWest will always operate under the assumption that any customer who enters our store is potentially a customer of our competitors. We will always strive to give each client our utmost attention and will try to accommodate whatever need brought him or her to us. We will make every effort to win them over in a low-pressure relaxed atmosphere, while stimulating their senses with modern eye-catching displays designed to maximize impulse buying. MusicWest will always bend to the type of customer we are serving, whether he or she is a professional, novice, parent, or child. We want the largest market share we can get and must do anything in our power to achieve this goal.

In short, nobody walks out unless we are satisfied we did everything possible to gain his or her business either today or in the future!

5.5.1 Sales Forecast

Our projections are largely based on Dave Moore’s experiences as manager of King Music and Marc’s Guitar Center, respectively. We believe we can easily meet the projected sales figures for the first year and believe we may be conservative in our projections for the next two years. The fact that there are only two band instrument dealers in our targeted territory and that these two dealers are weak, should provide a great opportunity for garnering instant credibility in the market we serve. Mr. Moore has compiled a list of over 4,000 musicians he has helped during his tenure in the Musical Instrument market. This will allow us to save time and money by drawing in proven customers for the opening of the store, and a client base to operate from during the initial months.

5.5.2 Sales Programs

MusicWest will offer several programs designed to increase sales and reward customer loyalty:

• MusicWest’s “ 100% Of Purchase Price Trade Up Policy ” on fretted instruments. Within the first year of purchase, MusicWest will give a consumer 100% of what they paid for a fretted instrument less tax toward a step-up instrument that is currently in stock. The trade can have normal wear and tear. MusicWest will be the sole judge of what qualifies as a step-up instrument.
• MusicWest’s “ You Play, We Pay ” incentive program for school band instruments and accessories. Students will register for the program, which will donate up to 2% of qualifying purchases to their school band booster committee for use with school band programs. A check will be forwarded to the committee quarterly.
• MusicWest’s “ Free Restring ” policy. MusicWest will restring your guitar free no matter where it was purchased to attract our competitors’ customers. Restring is for labor only, strings or parts extra.
• MusicWest will offer “ Free Guitar Lessons ” with the purchase of any type of guitar. Under this plan, the customer will get coupons for four free group lessons; a different level of these lessons will be held weekly. Classes will be taught by employees (David Moore or C. Ray Himes, our guitar experts). This program does not affect the price a customer pays for a guitar.
• MusicWest will offer a “ Free Loaner Instrument ” when any band instrument rented or purchased from us is in the shop for more than 48 hours.

5.6 Strategic Alliances

MusicWest will become a member of N.A.M.M. (National Association of Music Merchants). This organization plans many events throughout the year, such as, “International Guitar Month.” We intend to follow this group’s promotion schedule and to tie it in to our own advertising campaigns. No local storefront is currently taking full advantage of these offerings. By taking advantage of this trade organization’s expertise, we can save ourselves time and money on developing an effective advertisement campaign from day one. Some manufacturers also have advertising co-ops that we will use when feasible. In addition, these manufacturers provide nationally known musicians on a fee basis to their dealers, to use in informational/instructional clinics and to drive additional sales opportunities.

Web Plan Summary

MusicWest will have an informational based website containing hyper-links to our main manufacturers’ home pages.  We will also offer promotional coupons to entice Web surfers to visit our storefront.  We haven purposely chosen to avoid a sales engine, as we believe our major Web competitors could easily beat our local price.  The User Interface we envision will be easy to page through, with exciting  graphics and again it will be geared toward steering visitors to our storefront.

We will work with an outside website design and hosting service to create and maintain our website.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

MusicWest will initially maintain a small staff of over-achievers in order to take advantage of the higher overhead of our key competitors. We will operate with a staff of four full-time employees and one to three part-time employees as needed. It is our philosophy that each employee should be empowered to make crucial decisions on the spot where it benefits our approach to customer satisfaction. This staffing approach allows us the need for only one manager for day-to-day decisions needing a final word, keeping hierarchy to a minimum. MusicWest will be very selective in future hiring, and will reward employees as the store prospers in future years. It is crucial to our business that we keep employee turnover at a minimum, as consumers in this business like to develop long-term relationships with their sales representative. Our key employees will be experienced musicians known in the community.

7.1 Organizational Structure

MusicWest will require its staff to be multi-skilled. Each employee will likely oversee many aspects of the business on a given day. Our main divisions will be Sales, Service and Administration. Our focus on customer service will depend on all of our employees knowing as much about each area of the business as possible. A complete book of structures and policies, along with successful actions, will be created and maintained from the date of opening to streamline the process of adding new employees as they become necessary. Ongoing training for all employees will be necessary in order to keep our edge on the competition.

7.2 Management Team

Kayle Moore – Co-Owner Operations Manager

Qualifications:

Kayle is a 16-year veteran of the wholesale jewelry industry where she worked her way from an entry-level shipping clerk to the CEO/COO position with Shube’s Manufacturing. Over her 16-year tenure, Kayle took the company from 60 to over 300 employees and from $1 to over $15 million dollars in sales. Kayle’s strengths are writing and carrying out sales programs, and keeping a company within its financial limitations. Kayle, who plays the clarinet, has had a lifelong interest in music and plans to translate that enthusiasm, along with her management skills, into making MusicWest a successful long-term investment.

Related Management Strengths:

• CEO/COO level responsibility.
• Ability to get others to produce to their potential.
• Writing sales programs to generate and maintain consistent sales goals.
• Excellent communication skills.
• Maintains mutually beneficial vendor relations.
• Ability to anticipate and adapt to changing economic conditions.
• Experience negotiating complex sales contracts, including financing and shipment options with large corporate clients such as Wal-Mart and Target.
• Implemented the use of EDT computerized ordering software with clients to streamline the ordering process and allow the manufacturer to stock less raw inventory, simultaneously reducing overhead and increasing profits.

David Moore – Co-Owner Store Manager

Dave is currently the Store Manager of Marc’s Guitar Center in Albuquerque. Dave was previously Store Manager for King Music’s Westside location, where he was able to turn around a declining location and outsell the company’s flagship store for two years straight, despite fewer customers and staff. Dave has been a musician for over 23 years and toured professionally in the 80’s. Dave has been involved in sales and sales management since the age of eight. Dave has taken many sales/management courses and has had full profit and loss experience. Dave was the co-owner of a 7,500 sq.ft. retail furniture store in the early 1980’s.

Related, industry-specific strengths:

• Music Store Management. (7 years +)
• Direct purchasing of up to $400,000 in inventory annually.
• Top sales producer in the musical instrument combo department, in addition to his full time management responsibilities at both music stores where he has worked.
• Outstanding employee relations, with lower than industry average turnover.
• Excellent relations with vendors.
• Vast knowledge of Musical Instruments and the Musical Instrument Industry locally and nationally.
• Superior customer interaction/retention skills.

Additional Qualifications:

• Sales, Sales Manager and Finance Manager in the automotive industry.
• Trade show management and Sales in the Wholesale Jewelry Trade.
• Certified computer skills.

C. Ray Himes Service Department – Manager

• Graduate of the prestigious Roberto Venn School of Luthiery in Phoenix, Arizona.
• Trained in all aspects of fretted instrument repair from the simple to the complex, including re-frets, neck resets, crack repair, wiring and modification work.
• Completely versed on new construction of electric and acoustic guitars, from the planning and design phase to final product.
• Instructed in all phases of managing a full service repair shop as part of his training at Roberto Venn School of Luthiery.
• Trained personally by Dave Moore in the area of guitar sales and accessory sales, in addition to his repair duties at King Music Center and Marc’s Guitar Center.
• Great at improvising and solving difficult problems as they arise.
• Good woodworking skills essential to this position.
• Ongoing commitment to furthering his skills and knowledge of fretted instruments, in order to provide extensive repair services to clients.
• Plays in a local band: “Tanuki.”

7.3 Management Team Gaps

We believe we have assembled an excellent team of employees that will complement each others’ knowledge and skill levels. We feel weakest in is the band instrument repair department. As soon as finances permit, a knowledgeable repairman with this background would be highly desirable. We already know of one excellent candidate, who is currently working for Albuquerque public schools. The addition of this person will be a huge benefit for our store.

7.4 Personnel Plan

The personnel plan highlights our intent to hire as few employees as possible, in order to keep control over how our customers are treated during the crucial first stages of our business. We will have two full-time salespeople and two to three part-time employees to call upon as traffic demands. In addition, all key employees have agreed to work at lower pay structures to keep personnel costs at minimum during the critical first two years.

Financial Plan investor-ready personnel plan .">

We expect revenues and sales to increase dramatically between the second and fourth years of operation. After that high growth period, we expect growth to be steady and stable for the foreseeable future. This industry is very susceptible to consumers’ judgements about the store based on inventory, brands offered, pricing and staffing. It is crucial that we generate sufficient cash reserves during the growth years to be able to jump on future opportunities, allowing us to increase our market share.

8.1 Important Assumptions

The financial plan depends on certain assumptions, most of which are shown in the following table. The key assumptions are:

• Economy proceeding, as in recent trends, of 2 to 4% annual growth.
• No new major band and orchestral competitors on a large scale within the next two years in our direct vicinity.
• No unforeseen changes with our major vendors in regards to lines carried.
• No major change in our relationship with China or other foreign governments that would hinder product supply.

8.2 Projected Profit and Loss

If we take advantage of the current market conditions in Albuquerque, we can achieve great gains in market share during our start-up year and beyond. Our assumptions for sales are conservative compared to industry averages in similarly sized markets.

8.3 Break-even Analysis

For break-even analysis purposes, we are assuming per month running costs as shown below. Payroll on its own is a substantial portion of these costs. The break-even assumptions are based on the personal experience of the co-owner, David Moore, based on his actual experiences as manager of King Music Centers, Inc., and Marc’s Guitar Center for an average month’s need. We believe we can achieve higher than industry average margins by selectively choosing products that allow these margins to be possible, and by value-added marketing of these products and related services.

8.4 Projected Cash Flow

Our cash flow projections show only a slight negative cash flow that our cash “in bank” will easily allow us to cover, without the need for accessing additional lines of credit financing. We will maintain a positive cash balance throughout the foreseeable future.

8.5 Projected Balance Sheet

The projections in the balance sheet are quite solid. We do not anticipate any trouble meeting our debt obligations as long as we follow through with the plans and strategies set forth in this business plan.

8.6 Business Ratios

The following table shows industry relevant ratios as determined by the standard industry classification index (SIC) under category 5736 – Musical Instrument Stores.

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Music Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector » Music Sector

Are you about starting a music store? If YES, here is a complete sample music store business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a music store. We also took it further by analyzing and drafting a sample music store marketing plan template backed up by actionable guerrilla marketing ideas for music stores. So let’s proceed to the business planning section.

Why Start a Music Store Business?

Music has become a universal thing in the world. Good music on the other hand is something that has continued to gain more awareness and acceptance, as the time goes by. For that reason, you may quite as well agree with me that there are a lot of folks who would stop at nothing in purchasing good music.

Over the years we have come to know several distribution channels (online and offline) through which musicians and promoters get their tunes sold. Whilst, some have proved effective over the years, yet others who haven’t been too lucky with the ways their music have done in the market only have tales of disappointments to tell as they have failed to be able to recover the investments that have made.

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In recent times, and with major advancements springing up as the world goes global, we have come to see that other viable means of making money whilst selling music has evolved. One of such avenues is through the iTunes.  What is iTunes all about ?  ITunes is one of the most populous music stores in the whole world. It commenced its digital music revolution and have since recorded and made maximum impact

This is no wonder that it has been said that any music that doesn’t find itself on iTunes, it might just be missing out on over seventy percent of the entire digital music market place. Consequently, enough of reeling out the goodies that you stand to gain on iTunes. Let us talk about how you too can begin to make money on iTunes selling music.

If you have decided to start open a music store, then you must make sure that you carry out thorough feasibility studies and also market survey. This will enable you properly locate the business in a community or city with the right demography; a location that can readily accept your products. Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business.

Below is a sample music store business plan that will help you successfully write yours with little or no stress;

A Sample Music Store Business Plan Template

1. industry overview.

Operators in the Music Stores industry primarily retail prerecorded music in soft and hard copies as audio and videotapes, compact discs (CDs), digital video discs (DVDs) and phonograph records. The industry includes both online and offline music stores.

The trend in the Music Stores industry shows that continued shifts in consumer preferences and competition from large discount and digital music retailers have increased consumer demand for the Music Stores industry. In addition, with growing accessibility to high-speed internet, music streaming and less expensive CD-burning hardware, album sales have declined significantly over the last half a decade.

Despite the fact that consumer sentiment is expected to improve going forward, this industry will fail to experience revenue growth. Consumers who are accustomed to digital music are not likely to return to making regular purchases at bricks and mortar music stores.

Statistics has it that the global revenue of the music industry is estimated at 15 billion U.S. dollars in 2013, and that is about the lowest revenue recorded since 2002; of course it is an indication that the record label industry need to become more creative and leverage on the changing tides in the world of technology.

Even the strong growth in streaming revenues was not enough to stop the music industry globally from experiencing income dropping below US $15bn for the first time in recent years in 2014.

The Music Stores industry is indeed a very large industry and pretty much thriving in all the parts of the world. Statistics has it that in the united states of America alone, there are about 3,959 legally registered and licensed music stores (both online and offline)scattered all across the United States responsible for directly employing about 16,581 employees and the industry rakes in a whooping sum of $2 billion annually.

It is important to state that, the industry is expected to experience – 7.3 percent growth within 2010 and 2016. Trans world and iTunes have the lion share in the global market for music, but no single operator has control over the pricing trend, advertising trend, distribution model or customer loyalty et al in the Industry.

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

Over and above, the music store 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 with no online presence or you can choose to start on a large scale operating a one stop online and offline music store with different genre of music from different musical artist all across the globe.

2. Executive Summary

Penny Wise® Music Store, Inc. is a standard and licensed music 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 well – located store facility with a 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 music store.

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

We are aware that there are several small music stores and large music 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 and also for us to be able offer much more than our competitors will be offering.

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. Beyond retailing quality and affordable music and video game in our music store (both offline and online), we will ensure that our customer care is second to none in the whole of Los Angeles – California.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied and get what they are looking for whenever they visit our book store and also to become our loyal customers and ambassadors in and around our neighborhood.

At Penny Wise® Music 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 delivering excellent and neat jobs and also meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. We will ensure that we get our customers involved in the selection of music and video games that will be in our store and also when making some business decisions that will directly or indirectly affect them.

Penny Wise® Music Store, Inc. is owned by Stanley Mosley and his immediate family members. Stanley Mosley has successfully managed several retail stores and online stores both in Los Angeles and New York prior to opening Penny Wise® Music Store, Inc. Stanley Mosley has a Degree in Business Administration and he will run the business alongside her immediate family members.

3. Our Products and Services

Penny Wise® Music Store, Inc. is going to operate a standard and registered music store that will retail a wide genre of music and video games (soft copies and hard copies) from both locally and international music artists just like any other registered and standard music store in the United States and in any part of the world.

We are in the music 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 music store;

• Retailing prerecorded music (soft copies and hard copies)
• Retailing prerecorded videos (soft copies and hard copies)
• 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 music store in Los Angeles – California and in other cities in the United States of America.
• Our mission is to establish a music store business that will make available a wide genre of music and video games (both soft copies and hard copies) from musical artists all across the globe at affordable prices to the residence of Los Angeles – California and the online community.

Our Business Structure

Penny Wise® Music Store, Inc. do not intend to start a music store business like the usual mom and pop business around the street corner; our intention of starting a music store business is to build a standard music store that will be a one – stop music shop which is why we will ensure that we put the right structure 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 (the owners, workforce, and customers).

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 music 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

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• 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
• Creates, communiqué, 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 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.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Interfaces with third – party providers (vendors)
• Controls the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Handles any other duty as assigned by the CEO
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure a wide genre of music, audio books and video games are available in our store
• Responsible for the purchase of music, audio books and video games et al for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Manages the organization online music store of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages 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; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• 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
• Ensures 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
• Manages administrative duties assigned by the manager in an effective and timely manner
• 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 line manager
• Responsible for cleaning the store facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handle any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our music 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 chains of music stores all over California and perhaps also sell franchise through the United States of America and Canada.

We are quite aware that there are several music 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 welled equipped to confront our threats.

Penny Wise® Music 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 Penny Wise® Music Store, Inc.;

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

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

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

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new music store in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

One notable trend in the retailing cum music 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 bricks and mortar music stores without online platform.

Although these trends are forecast to continue over the next 5 years, some music stores will benefit from increasing demand for new technologies, such as online music stores / soft copies. Beyond every reasonable doubt, the music store companies that can successfully flow with the trend and keep up with consumer and technology trends will definitely fare well in the coming years, while the continued decline in bricks and mortar music store will keep the overall industry in steady decline.

If you keep tab with music store business and retailing business generally, you would have noticed that It is now a common phenomenon for music 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 efficiency. No doubt data collected from customers goes a long way to help retail stores serve them better.

Lastly, a major trend in the Music Stores industry shows that continued shifts in consumer preferences and competition from large discount and digital music retailers have increased consumer demand for the Music Stores industry. In addition, with growing accessibility to high-speed internet, music streaming and less expensive CD-burning hardware, album sales have declined significantly over the last half a decade.

8. Our Target Market

When it comes to selling music, audio books, videos and video games, 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 resides in the locations where we intend opening our music 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 music store at all times.

In view of that, we have positioned our music store to service the residence of Los Angeles – California and the online community. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail music, video games and audio books to the following groups of people;

• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women Students
• Every adult in the neighborhood where our music store will be located.
• Online community

Our competitive advantage

Penny Wise® Music Store, Inc. is launching a standard and registered music store that will indeed become the preferred choice for residence of Los Angeles – California and online community. Our music 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 well over 15 cars per time.

One thing is certain; we will ensure that we have a wide genre of music, video games and audio books both in hard copies and soft copies from various musical artists all 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 game or audio book that they are looking for. One of our business goals is to make Penny Wise® Music Store, Inc. a one stop music 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 music 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 achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Penny Wise® Music Store, Inc. is established with the aim of maximizing profits in the music stores industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of music products and related products to a wide range of customers.

Penny Wise® Music Store, Inc. will generate income by retailing the following items;

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 music store business, the larger a music store the larger the numbers of customers that will patronize them. Although we may not be as large as the biggest music store in the United States, but we will ensure that within our capacity we make available a wide genre of music, video games and audio books 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 month of operations and grow the business and our clientele base.

We have been able to critically examine the music stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – California.

Below are the sales projections for Penny Wise® Music Store, Inc., it is based on the location of our business and other factors as it relates to online and offline music store start – ups in the United States;

• First Fiscal Year-: $120,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $750,000

N.B : This projection is 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 and customer care services 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 Penny Wise® Music Store, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence 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 numbers of customers we want to attract per time.

We hired experts who have good understanding of the music store industry to help us develop

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
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our music 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 wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that give leverage to music stores and retailing business generally, it is normal for consumers to go to places (music stores) where they can get music, audio books and video games at cheaper price which is why big player in the music stores industry like attract loads of consumers.

We know we don’t have the capacity to compete with other bigger music store, but we will ensure that the prices of all the items (music, audio books and video games) that are available in our music store are competitive with what is obtainable amongst music stores within our level and in our location.

• Payment Options

The payment policy adopted by Penny Wise® Music 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 Penny Wise® Music 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
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a music store business; it might differ in other countries due to the value of their money.

When it comes to starting a music store business the major areas that you look towards spending the bulk of your cash is in of course renting or leasing a standard store facility. Aside from that, you are not expected to spend much except for paying of your employees, creating a user – friendly and easy to download website and then stocking of your store different genre of music, audio books and video games.

These are the key areas where we will spend our start – up 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 Penny Wise® Music 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 Consultant – $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 $105,600.
• 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) – $60,000
• The cost for Start-up inventory (stocking with a wide genre of music, audio books and video games in hard and soft copies from different musical artists all across the globe) – $70,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• 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
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $250,000 to successfully set up our music store in Los Angeles – California. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Penny Wise ® Music Store, Inc.

Penny Wise® Music Store, Inc. is a family business that is solely owned and financed by Stanley Mosley and his immediate family members. We do not intend to welcome any external business partners, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 ( Personal savings $75,000 and soft loan from family members $25,000 ) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document 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

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Penny Wise® Music Store, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our music, audio books, video games and other book related merchandize a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Penny Wise® Music 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 organizations’ corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

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 three years or more. 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
• Graphic Designs and Printing of Packaging Marketing / 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
• Opening party / launching party planning: In Progress
• Compilation of our list of products (music, audio books and video games et al)that will be available in our convenience store: Completed
• Establishing business relationship with vendors – wholesale suppliers of various genre of music, audio books and video games: In Progress

Get Going → Events & Entertainment

A step-by-step guide to developing a music business plan

April 19, 2021

Why you need a music business plan

Where to start, the main components of a music business plan, the importance of multiple income streams, subscribe to greenlight by thimble..

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Making a living in the music business is the ultimate dream of every serious musician. But out of the countless individuals with a passion for music, only a select few will make a profitable business out of it. That doesn’t mean reaching your goals is impossible. If you want to earn reliable income from your music career, you need to treat it like any other business. That means making a detailed blueprint that will take you from passionate hobbyist to successful professional. This step-by-step guide to developing a music business plan will set you on the right path.

Whether your goal is to have a career as a professional musician, recording artist, producer, or music teacher, documenting the path you’ll take with a music business plan will be helpful to your cause. Your business plan outlines your goals, identifies the practical methods you’ll take to achieve them, and lists the resources you have and will need.

Not only will a concrete business plan keep you on course, it will also demonstrate your credibility in the eyes of others. Potential clients and business partners will see you as a professional and not another starving artist. If you ever need to take out a business loan or raise money for investors, a business plan is a must-have.

Crafting your music business plan isn’t something you can do in one sitting. You’ll need more than an afternoon to get this right. Take your time, bite off piece-by-piece, and chew your thoughts over thoroughly.

Our first piece of advice is as old as time:  know thyself.

You need some clarity of purpose before you can craft a useful music business plan. Ask yourself:

• Who is my audience?
• What is my ultimate goal?
• Why do I want to do this?

Having this understanding will make it easier for you to explain your vision to others and convey your enthusiasm. It will also establish the framework for your music business. This step is crucial if you’ll need people to buy in to help you reach your goals.

The content of your music business plan will vary depending upon whether you’re aiming to start a music school, be a producer, or work as an artist. But the fundamental components are the same either way. Here’s what you’ll need:

• Mission Statement
• Executive Summary
• Audience Analysis
• SWOT Analysis
• Marketing Plan
• Financial Considerations

Let’s look at each of these in turn.

Mission Statement:

This can be as short as a few sentences, as long as it adequately describes who you are as an artist or a musical entrepreneur and what you’re trying to accomplish. While this might sound simple, think things through a bit before you try to draft your statement. Everything that follows here will hinge upon it.

Executive Summary:

The executive summary is a one-page synopsis of your plan. It should include an introduction as well as a description of your endeavors. Details about the funding you already have and what you’ll need in addition to a brief accounting of your plans for putting all of it into play are important too.

Most experts recommend saving the drafting of this part for last. It’s essentially a digest of all the other parts of your plan. Doing it last allows you to draw upon the information you’ve drafted for all of the other steps.

Audience Analysis: 

Here’s where you’ll demonstrate your understanding of your target audience. If you’re already performing, teaching, or producing on the side, think about what traits the people who follow you have in common.

If you’re just getting started, find someone doing what you want to do whose style and circumstances are similar to yours, and analyze their target market. Create a demographic sketch of your target audience based on gender, age, location, musical tastes and favorite venues.

Strengths, Weaknesses, Opportunities & Threats:

Think about the qualities that make you unique. List everything that comes to mind, from technical mastery and creative spark to teaching older demographics and networking. Your skills might not seem extraordinary on an individual level, but combine all your best qualities and you’ll find there isn’t anyone quite like you on the market.

Don’t forget about your weaknesses. Identity these not as qualities to promote, but as areas to work on in the future. Being aware of your shortcomings will also help guide your decision on potential business partners in the future. Let your inner critic loose, but realize that this is an exercise in personal growth, not tearing yourself down.

Had enough reflecting? Let’s take a look at the marketplace. Think about potential gaps in the industry you can exploit. Perhaps your competitors are overlooking a key value and you see a way to provide it both efficiently and effectively. These are your opportunities.

Threats could include technological shifts, cultural changes, the emergence of new artists, competition, and new trends. The music world moves fast, and today’s hot act can end up as yesterday’s news before your can say “more cowbell!” Brainstorm any roadblocks you picture yourself facing over the next few years and strategies you can use to overcome them.

Marketing plan:

Your marketing plan will detail how you’ll spread the word about yourself. Consider how much money you can reasonably invest into marketing and work out how you’ll spend it to reach as many of the right people as possible. Think about how you’ll grow your online presence—including social media, a press kit, and publicity materials such as a logo and photography.

Get a full account of your current cash flow situation. List how much capital you currently have and estimate how much it’ll take to get your operation up and running. When in doubt, overestimate. Studio time, engineering talent, transportation, legal fee, copyrights and trademarks are all important considerations when projecting your budget.

Measuring your progress:

At what intervals will you go over the financials to see how you’re advancing? What are the milestones by which you’ll mark your achievements?

You’ll also need a method for measuring your impact on the market in terms of the reputation you build. Social media outlets provide analytical tools to help you track these metrics. They can also help you pinpoint the demographics of your audience.

Establishing your key performance indicators (KPIs) can help you set the standards by which you will gauge your success. Sharing this information with others makes you accountable because they can look at your projections and see how much progress you’ve made toward achieving them.

Summarizing your music business plan

As we mentioned above, once you have all of these areas covered, you can then condense the information each section contains to create your executive summary. After all, how will you know what to put in it until you’ve examined all of these other areas first?

Success in the music industry takes a lot of work and a little luck, but you can stack the deck in your favor by building multiple income streams. That way, if one area slows down, you’ll have another one in play to keep you rolling until the next opportunity presents itself. Revisit your strengths and opportunities and start brainstorming ideas. If you get stuck, here’s a quick list to get you started:

Give music lessons. Chances are if you’ve got the chops to play paid gigs, you’ve got enough skills to pass on to some novice students. Giving music lessons can be a great way to add some extra recurring income.

Start a YouTube channel. With over 2 billion active users, YouTube might just be your biggest source of untapped attention and potential. 1 The platform offers users a chance to learn or be entertained, and as a musician you’re well-positioned to offer both. You could upload instructional videos or footage of yourself performing. You’ll get to keep a portion of any ad revenue your videos make. And if the right person sees your content, it could open the doors to even greater opportunities.

Explore the marketing world. If composition is your thing, you might be overlooking a potentially huge money-maker—marketing and advertising. Brands are in constant need of good video content to market their products, and those videos need music to truly capture attention. If you’ve got a knack for putting together atmospheric instrumentals, creating music for ads could seriously help stabilize your income.

Open your own studio. If you have the capital to invest and live in an area underserved by recording studios, you might want to consider opening your own. While you’re not using it for your own projects, you can rent it out to other local musicians and producers. If there’s enough demand, you could cover the costs of equipment and rent and even have a little profit left over.

Explore session work. Sure, your band is your baby, but if you’ve got time on your hands and musical versatility to boot, why not offer your services as a session musician? Session work is an effective way to boost your income, make new connections and get your name out there as a legit professional. If an artist is truly enamoured with your work, they could invite you to join them on tour.

Another important consideration in your music business plan is protecting your livelihood from the consequences of unintentional accidents. General liability insurance is key to helping you stay focused on your business. Carrying a policy also demonstrates to potential clients that you are a serious professional — whether you’re a musician, DJ , or another kind of entrepreneur in the entertainment industry.

• Hootsuite. 25 YouTube Statistics that May Surprise You: 2021 Edition .

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.

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How To Start Music Store Business [PLAN]

Musical instrument store business startup guide.

If you have a passion for music or vast experience in music festivals and the industry, then you should consider starting a music-related business.

One of the music-related businesses you can start is a music store. A music store business is very lucrative and requires low capital to start up.

However, if you really want the business to be successful, then you must make adequate plans before starting it. One of the ways you can do this is by creating a business plan.

If you are intending to create a music store business plan and don’t know how to go about it, then this post is for you. The post is a music store BUSINESS STARTUP GUIDE that you can use as a template to easily create your own.

Here is how to start a music retail business.

BUSINESS NAME: Bubbling Music Store

Table of Content

Executive Summary

Vision Statement

Mission Statement

Business Structure

Products and Services

Startup Cost

Sources of Capital

Bubbling Music Store is a registered company that will be established very close to South Carolina University in the United States.

After carrying out intensive research, we discovered that the residents of our selected location comprise majorly of students of South Carolina University who are passionate about music and there is no standard music store to cater to their music needs.

We decided to tap into this opportunity by opening a top-notch music store in the heart of South Carolina University.

Bubbling Music Store aims to meet the needs of our customers while making good profits in the process. And to achieve this aim, we will ensure all our products are of the very best quality.

Also, we will make sure that we deliver excellent services to our customers in a conducive environment.

We will also make sure that beyond products and services, we sell an amazing experience that will make our customers feel special and make them not only keep coming back but also refer our business to other people.

To make things super easy for our customers, we have decided to have an online e-commerce store where they can make orders for our products and have them delivered to them anywhere they are.

None of our competitors is having an e-commerce store. So introducing this concept will make Bubbling Music Store stand out and favorably compete with its competitors.

Bubbling Music Store will be owned by Mr. Danny Fred and a partner, Mr. Bob Donald. Mr. Danny is a savvy retail store manager who has experience of over 20 years of working for different music retail stores all over the United States.

His superpower is running a highly converting e-commerce music store business for his clients.

He intends to employ this superpower in creating a stellar e-commerce music store for Bubbling Music Store which will serve as the company USP.

Mr. Bob is a business administrator who has carved a niche in the music industry. He has worked with various Music Companies and helped them to accelerate their business growth.

His experience in this area will greatly aid the growth of Bubbling Music Store.

To have become one of the leading music stores in the music industry in the United States. We also have vision 2020 which is to have 20 music stores all over Universities in the United States within 20 years.

To establish a solid reputation for selling affordable but quality products. We also intend to always come up with creative ways of serving our customers that will always make us be on top of the game.

We know that to fully realize the vision we have for Bubbling Music Store; we need to put a solid business structure on the ground.

To this end, we are going to make sure we hire workers who are not only dedicated and passionate about the business but also competent and excellent. Our business structure will comprise of:

• Chief Executive Officers
• Information Technologists
• Human Resource Manager
• Marketing Executive
• Sales Representatives
• Receptionist
• Security Guards

To fully satisfy our customers, Bubbling Music Store will provide a wide range of products and services which will include:

• Sales of music audio CDs and DVDs
• Sales of music video CDs and DVDs
• Sales of Audio Books
• Sales of Video Games
• Sales of Cartoons and Animation CDs
• Sales of Empty CDs
• Sales of Music Accessories
• Sales and Renting of Music Instruments
• Renting of Music CDs and DVDs

The amount of money needed to start up the kind of music Store business we are projecting is estimated to be $250,000.

This will cover everything ranging from the cost of acquiring a business facility to the cost of equipment, cost of marketing both online and offline.

It will also cover the salaries of staff for the first three months of operation.

The founders have already pooled their resources together and raised the total sum of $100,000.

They are already working on raising $50,000 soft loans from friends and family and applying for a bank loan to raise the remaining $100,000.

The business plan above is a Music Store BUSINESS STARTUP GUIDE that users can use as a guideline when they want to start their own music store business.

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Music Business Plans Sample

Published Dec.29, 2020

Updated Apr.23, 2024

By: Jakub Babkins

Average rating 5 / 5. Vote count: 3

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Table of Content

Music Business plan for starting your own building firm

Do you want to start a music business? Well, that’s a really alluring and one of the most profitable businesses.

To run a music business, you need to hire the services of music artists, musicians, record producers, and composers on a temporary or permanent basis. The business can include creating songs, music sheets, stock music, and theme music. And can also be extended to cover events, ceremonies, and concerts.

The business is exciting, however, due to the large competition in the market, one has to put very much effort in the beginning to earn recognition. Like any other business, the first step would be to create a business plan for music industry. The professional business planning should cover all aspects of the business like workforce, work area, expenses, services, sales strategy, etc.

To give you an idea of how your business plan should look like, we are giving here the business plan of a music business startup, Hymns & Beats.

Executive Summary

2.1 the business.

Hymns & Beats will be a licensed music business based in Atlanta. The business will comprise artists and musicians who will work to create new music pieces. The business will utilize the talent of various singers to release stock music, record labels, and theme music for corporates, events, TV shows, movies, and game developers.

2.2 Management of Music Business

A music company needs efficient management in all the areas such as reaching out to singers, making arrangements for concerts, making sure that the edit effects are perfect, etc. Realizing that she would not be able to supervise everything on her own, Amelia decided to hire a manager to help her.

If you are looking for how to start a music business you should study different music business plans. While exploring business plans on how to set up a music business, try to also explore the ways others use to manage multiple tasks of a business at the same time.

2.3 Customers of Music Business

Our primary customers will be the television shows and film industries who will seek our services for creating tunes, theme music, and songs. Besides, corporate, institutes, companies, game developers, and event organizers will also be our customers.

2.4 Business Target

Our target is to become one of the most renowned music businesses. We aim at releasing at least 10 albums within six months of the launch. We also aim at achieving a rating above 4.7 within a year of the launch. Our profit goals to be achieved within the three years of our launch are summarized here:

Company Summary

3.1 company owner.

Amelia Stiles will be the owner of Hymns & Beats. Amelia got her degree in Bachelor of Music from the Oberlin Conservatory of Music, Ohio.

During her schooling, she composed two music pieces that earned her national level fame.

3.2 Why the music business is being started

Amelia wanted to become a playback singer. She learned and practice music all her life and still couldn’t succeed in getting more than a few singing projects. Owing to her optimistic nature, she decided to find new ways to invest her passion for music. She decided not to sing but just compose the music pieces.

Realizing her creativity and skills in the music composing area, she decided to start her own music business. Now Amelia hires music artists and glorifies people’s lives with exceptional tunes and melodic voices.

3.3 How the music business will be started

Since there are many already established music industries in Atlanta, you should study different examples of music business plans. Exploring as many examples of music business plans as you can, will enable you to come up with unique ideas. Analyzing various music business plan samples will allow you to identify the areas where demand is high despite the large competition.

Hymns & Beats will be started in one of Amelia’s properties in Atlanta. Amelia will hire a home renovating professional to turn her property into a structure for the music business. Meanwhile, she will hire a professional business plan writer to make a comprehensive plan for her business.

Then Amelia will purchase the required musical instruments and other equipment like speakers, cables, amplifiers and microphone stands, etc. After which the startup will start its hiring phase. Staff like audio engineers, musicians, and DJs will be employed after strict testing and interviewing. Meanwhile, the company will ensure to establish a strong web and social media presence to get introduced to the target audience.

The costs for startup are as follows:

The startup requirements are as follows:

Before making a music business plans template, you should be very clear about the services you are going to provide your customers. In this sample plan, we are listing the services of Hymns & Beats. However, to get a broader idea of services that can be provided in this domain, you should study many other music industry business plans too.

1.Creating Production Music

Our primary service will be to produce music pieces that can be used in television, movies, and other media platforms after getting licensed to the buyers. Those music pieces will cover nearly all music genres such as classical, electronic dance, folk, and disco, etc.

This service will also include producing specific music pieces according to the client’s requirements.

2.Record Labels

We will also release albums and songs made with the collaboration of our team with top-class singers and songwriters.

3.Theme Music For TV Shows, Movies, Trailers & Video Games, Commercials

Our third primary service will be to create instrumental and theme music to be used in the background of movies, trailers, video games, commercials, and reality shows, etc.

4.Corporate Background Music

We will also create professional music themes to be used by companies and corporates in their presentations.

5.Hosting Concerts, Music Festivals & Parties

This will be one of our major services. We will host music nights, concerts, events, and parties. We will also offer the service of presenting music and songs in ceremonies according to the nature of the gathering.

Marketing Analysis of Music Business

The most important component of starting a music studio business plan is marketing analysis. It includes a detailed study of your target market to understand the areas where competition is high or to identify the domains where the demand for your services can be more.

Thus, before you start a music business you should study the dynamics of the marketplace where you will be offering your services. In this music business plan concept pdf we are listing market analysis and market segmentation done by Hymns & Beats for their business. If you are looking for how to write a music business proposal or how to create an efficient marketing plan, you can take help from here.

5.1 Marketing Trends

According to IBISWorld, the average growth that has been reported in the music industry in the last five years is 5.5%. Moreover, Statista reports that the annual revenue generated by the U.S. music industry was recorded to be $21.5 billion in 2019 alone. Simply put, the music industries have always been in demand. To succeed, you just need to be proactive in reaching target customers and creative enough to meet their expectations.

Business plan for investors

5.2 marketing segmentation.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 TV Programs & Film Industries: Our primary customers will be the television shows and programs that need different background music for different segments and for transitions of one segment to another.

Besides, film producers will require our services to create music pieces for trailers and songs. We also expect this group to avail of our services of producing background and themed instrumental music.

5.2.2 Commercials (TV ads) Production Companies: The second group of our target customers will comprise of commercials producing companies. We expect to get projects from this category from the very beginning as video ad creators usually don’t need music producers with past experience.

5.2.3 Video Game Developers, Corporates & Event Organizers: The third category of our target customers consists of video game developers who need music to be played in the background. This category also includes corporates who need professional background music for their presentations.

Apart from them, we also expect to be called by events and party organizers for playing music, singing songs, and setting up musical nights. We also look forward to being invited to cultural ceremonies for displaying the skills and talent we have.

5.3 Business Target

Our business targets are:

• To achieve the net profit margin of $9.1k per month by the end of the first year
• To release at least 10 albums hitting a ranking of above 4.8 by the end of the first six months
• To host at least 10 concerts within six months of the launch
• To achieve an average ranking above 4.75 within a year of the launch.
• To balance the initial cost of the startup with earned profits by the end of the second year

5.4 Product Pricing

Since we are not selling any discrete products therefore we can’t define a strict product pricing strategy. Our prices will vary with the required mastery, the difficulty level of the track and music, etc.

However, in the beginning, we will offer massive discounts on our services of hosting musical events and ceremonies and also in our theme music creation service.

Marketing Strategy

Like marketing analysis, sales strategy for business is also an important component of a music business marketing plan. Sales strategy enables you to attract your potential customers, and compete with your already-established competitors.

From this music business proposal sample, you can learn the competitive aspects and advertisement strategy of Hymns & Beats.

6.1 Competitive Analysis

Although we have tough competition, we have entered the market with several competitive aspects. Firstly, we have an excellent team that will help us develop unique music pieces. Secondly, we are collaborating with top singers and songwriters to come up with exclusive albums.

Moreover, we will be offering background music production services for video games and trailers online. So that will enable us to reach a wider audience.

6.2 Sales Strategy

• We will establish a strong web and social media presence through SEO optimization
• We will advertise our services through Google Local Services ads, local newspapers, and magazines
• We will arrange a themed musical night for the young people on the day of launch for an entry ticket of just $3
• We will offer a 20% discount on our theme music production services for the first three months of the launch
• We will offer a 50% discount on our offering of playback wedding music by our singers and musicians

6.3 Sales Forecast

6.4 Sales Monthly

6.5 Sales Yearly

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Personnel plan

Your business is just a collective representation of your staff and managers. So before proceeding to other steps, you should create your personnel plan in a template for writing a music business plan.

Here we are only listing the permanent staff of the company. The singers and songwriters whose services will be hired temporarily for record albums are not mentioned in this list.

7.1 Company Staff

• 1 General Manager to manage the overall operations
• 1 Cashier to maintain financial records
• 2 DJs to assume musical responsibilities in concerts and events
• 4 Musicians to play musical instruments
• 1 Audio Engineer to regulate music effects
• 2 Software/ IT Experts to ensure web and social media presence
• 1 Sales Executive to promote the company’s sales
• 2 General Assistants for routine works
• 1 Receptionist

7.2 Average Salary of Employees

Financial Plan

Making a music business plan is a little tricky as you have to devise a plan to manage your permanent as well as temporary resources. For example, while creating a financial plan for the music business, you have to consider fluctuations in the price of services. The albums that need to be sung or written by high paid singers and songwriters will require you to reserve a bigger than usual budget.

It is recommended to seek professional help in creating the financial plan for your business. To give you an example of how it would look like, we are providing here the sample financial plan of Hymns & Beats.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Music Business Plans Sample in pdf

OGS capital professional writers specialized also in themes such as bowling alley business plan , business plan for bouncy castle , nightclub business plans , starting paintball business , business plan for hotel and resort , roller skating rink business plan and many other business plans.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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