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Business
Plan: Dallas Music Store
Name
Institution
Affiliation
1.0 Executive Summary
1.1
General Overview
Dallas
Music Store is an exceptional retail business that will be established in the
music affectionate city of PPP located in Arizona. The music store looks
forward to taking advantage of the enthusiasm for music by coming up with a
community place that will attract music connoisseurs who will come together to
share a lot in regard to music. My goal is to set up a place that will stand
out and be able to attract music lovers far and wide. I am currently handling
the final stages of establishing the sole proprietorship and expect to be given
the green light by the relevant authorities in less than 10 days. I am also
working round the clock to attain the lease agreement for the physical location
of the store in the city of PPP, the store will cover 2200 ft. Dallas Music
Store is a sole proprietorship type of ownership.
1.2
Business Model
My
business model is based on taking full advantage of the contemporary nature of
the music industry. The business will be fed by revenue from two different
revenue streams. That includes 1) Sales of music instruments as well as rental
and 2) Facility rental in order to facilitate music lessons, production, and
recording. The sale of music instruments will be the main revenue source of the
business and also act as a front to market the business to new customers in the
music industry. I estimate the overall margin of operation to be at 10% during
the first year with the room for improvement to 20% in the subsequent period of
four years prompted by the increase in sales, thus allowing me to maximize on
the economies of scale.
1.3
Market Analysis
The
music instruments demand is growing in leaps and bounds thus being a large
segment in any music business. According to the National Association of Music
Merchants (2007), United States of America recorded £7 billion in music
instruments sales. In the past few years, this industry has appreciated by a
total of over 15%. To further add on that, the rental demand of music
instruments has appreciating with more schools incorporating music lessons in
their curriculum, this has, therefore, fueled the need for music instruments. The city of ZZZ, has an estimated population
of 200,000, with 70,000 being households and over 24,000 families taking
residence in the city that’s according to the Census Bureau. The households
enjoy a median income that ranges between £40,000 and £50,000. On the other
hand, the families enjoy a median income of over £70,000. AAA Metropolitan has
other areas apart from ZZZ; they include Wayne, St. Clair among others.
1.4
Financial Projections
My research and estimation show that it's possible for the primary sales to increase from £19,000 in the first month to £28,000 in the subsequent months. My operational profit proceeds will increase from £40,000 in the first month to £90,000 in the subsequent months. I anticipate expanding the sales to £65,960 in year 5 from £42,400 in year 1. I plan to have a constant and positive cash flow:...