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Thursday, 16 April 2015

What Not To Do As A Business Owner.

As a business owner, I had the wrong concept of approach to business. I started my business at the age of twenty five years old. The nature of my business covers online marketing and management of artistes. But truly, I started with experience; however the practical knowledge of owning a business was absent. I say absent, because in some else’s business I know that I would get pay at the end of the month. Now that I have my own business, I couldn't polish off information for any manager or executive director, because I am the head and I would be sinking my own business. I remember when my business plan was analyzed by a business consultant from the Jamaica Business Development Corporation. I am sharing this information with you, because I don’t want young entrepreneurs to make the same mistake like me. She wrote this report:
In general, most business plans follow a particular guide and as such are there headings in a business plan which are expected to be in it. It seems as if a more comprehensive template could have been used. I have attached a simple business plan template which can be used as a guide.
General Findings:

The plan looks good in terms of layout, font etc. the headings and sub headings need to be uniformed.

1.  Table of contents has no page numbers, and some elements in the plan are not been shown in the tables, eg. SWOT analysis. (I assume this is a simple mistake)
2.  The first section of the business plan should be the Executive Summary, this is a summary of the plan no more than about two pages. Someone should be able to read this summary and know everything about the business, its products, customers, owner, goal,  financial projections,  start up or existing business, and also what’s the purpose of the plan, is it a guide for management or for seeking investment. Etc.

3. Business Description.

Is this the business’ Background/ History?
Is it a start-up or existing business, what have you done so far, why this business?
What business are you in? is it that you will manage the sales of music, or you will be managing an artistes presence online via. the various social media platforms. How will it attend to all the needs of the customers? Or is it artist management overall, including bookings, capacity building and other forms of promotion?

Who is the Owner / General Manager? What are the skills, experience of the manager?
How will you choose to register your business? i.e. sole trader, partnership or  Limited Liability Company.

Vision statement

Your vision statement is not stating what you want to become, what your future looks like. For example you want to be the leading online marketing company when it comes to online management of musicians and writers.

Mission Statement

Your mission statement is a statement to your customers stating why you are in business. For example Prime Managements aim is to provide the best online marketing  management service to musicians and writers through  our membership programme.
Both mission and vision statements were vague as it did not speak to your service offerings nor your customers.

Goals & Objectives

Most goals seem good, they are SMART  with the exception of a few i.e. “secure funding” how much, by when?
What do you mean to become a top seller? Be more specific, also “to access both online and local”
You may also want to be a bit more realistic with the numbers i.e. having 500 registered, market share and profit expectations?

3. Overview of Entertainment Industry

This is the Industry Analysis.
In this section of the plan, you give a good account of the industry in general, i.e. namely describing the current trends. However it is too long and lacking in other aspects. You may want to do a PEST analysis, (Political, Economical, Social and Technological Analysis) or Porters five forces analysis
You have provided information re: the trends but no information regarding the actual business that you want to get into which is primarily the management / monitoring of sales of your members music and books. Your business is artist management therefore the industry is the artist management sector which I would consider a sub-sector to the overall entertainment industry.

After identifying the industry, give an overview including brief history, Factors affecting growth or decline, Government regulations affecting industry i.e. copy rite law, JCAP etc. and Leading businesses in the industry (locally) and their operating practices. You can also try to estimate the size of the industry in dollar value, current trends in terms of management, technology, marketing etc.
Also customer data, so what is the size of your target market and their buying behavior. I assume your target market to be recording artists, composers, and authors etc.

This section is too long with unnecessary information, just give a brief description of your services in point form

5. S.W.O.T. Analysis

Have the knowledge to use information technology properly and the Online Platform to maximize profit.
Bad- and low-quality production, poor marketing, low capital and mismanagement are problem face.
To gain access into the wider market place (World wide Web).
Piracy and illegal download of music with unlimited circulation.
Have the necessary skills to manage the business properly.

Lack of owned funds.
Growth of niche markets, new customer segments,  cultural movements and new technology
Fans who strike out against organization fees, charges and policies.
BEEP will provide support for the business.
Business is new
Opportunity for Online Royalties from online Radio Station through streaming. 
Virus attack on websites

System failure with hard drive.
Opportunity to earn from music through sales from the online stores and publishing (copyright payments).
Loss of music on the website by network failure.

Artists are of the poorest class
Potential to attract new and expose artist which would boast sales. 

The opportunity to grow and expand membership and revenue.

Able to build fans base online with song link being share with fans.

Have the opportunity get advertisement deal

Able to sell ringtones

What is BEEP?
What is your management history?

Bad- and low-quality production, poor marketing, low capital and mismanagement are problems faced- if you are talking about your clients or potential clients, this should be an opportunity for you
Artist being of the poorer class is not your weakness

Artist managing their own accounts because of technology and ease
*The Strength and Weakness are internal to the business and you may have control, while opportunities and threats are external, for which you have no control.
6. Factors Critical to Business Success / Keys to success

Business registration and raising of capital can be considered goals
Your keys to success are the things you have to do in business to ensure success, i.e. having the appropriate software or systems to effectively manage/ monitor your artists eg. Relationship building, competent staff or effective partnerships, etc.

7. Operations
This section seems fine.

8. Market analysis
Who is your target market? How much?  Is it that you are skewing your target market to Christians or performers of Christian music?  If so why? You are selling your services to the musicians and authors, this is your primary target market as it is they whom you are providing this service for. The purchasers of music are the end users or your indirect target market unless you are in the business of selling digital music hence your main target will be the end users i.e. the individuals who buy music online.
9. Marketing Strategies

What about online marketing strategies

10. Pricing Strategy

·         Uploading fee: $ 1, 600.00 per song upload
·         Registration fee: $ 1, 000.00 per artist
Isn’t this your prices for your service? What was the strategy behind it, is it based on competition is it the market price market?

11. Organization

Who is the manager(s) is it you? What makes you capable of managing this business, do you have any management experience?  (resume’)
Provide a list of key positions and responsibilities.

What kind of support will they give?

13. Financial Analysis

There are no assumptions to the financials.
Also if you are seeking a loan you may need more than a one year projection
And again you have to be realistic, especially in terms of sales figures it is better to underestimate.

It seems more marketing oriented, you should also put goals and other things to be achieved in the implementation plan…..