Los Musick Productions Business Plan 2019

CARLOS DURDEN-CEO: 409-998-4366

Executive Summary

Los Musick Productions is a new player in the music industry that will be based in Southeast Texas,
U.S.A. Our goal in starting this business is to work in tandem with both established and upcoming
music artists and record labels of all genres located in the U.S. and abroad to help revolutionize the

production of good music that can compete with the best in the music industry.

Although our startup base is in Southeast Texas, we plan to have an active presence in other major cities on both the
East and West Coasts; we will strategically place our agents in various cities to help assist the company’s growth and
become a source of forming music production deals.

Los Musick Productions is not just planning to engage in music production, but we plan to ensure that we play a
big role in marketing and promoting all music projects produced by our company. Part of our plan is to work toward
becoming one of the leading music production companies in the whole of South and Central Texas, and in the near
future compete with the leaders in the music production industry, not only in the U.S. , but also on the global stage.

We are quite aware that starting a standard music production business from the ground up requires major capital,
especially for the purchase of equipment, and costs of marketing, live productions and travel, which is why we have
major plans for steady flow of cash from private investors who are interested in working with us. We can confidently
say that we are ready to take on any challenge that we encounter in the industry.
Our work force is going to be selected from an experienced pool of talented and highly creative people with ears
for good music in Texas and across the nation. We will make sure that we take all the members of our workforce
through the required training that will put them in the position to meet the expectations of the company and to
compete with other players in the U.S. and throughout the globe.

At Los Musick Productions our client’s best interest come first and everything we do will be guided by our values
and professionalism. We will ensure that we hold ourselves accountable to the highest standards by meeting our
client’s needs precisely and completely. We will cultivate a working environment that provides a humane, sustainable
approach to earning a living, and living the best possible life for our partners, employees and for our clients.
Los Musick Productions will be owned by Carlos Durden and Merecal Durden, one a seasoned professional in music
production, and audio engineering and the other in business and artist management, marketing and promoting and
journalism. The duo has been ground-breakers in the music industry both on the national and international level. They
have experience working with some of the leading music productions companies in the U.S. prior to starting their own
music production company.

our products and services

Los Musick Productions has plans to offer a variety of products and services within the scope of the music industry.
Our intention of starting our music production company is to make profits from the music industry and do all that is
permitted by the law, to achieve our goals with this company.

OUR BUSINESS OFFERS: 6. Marketing and Sales of Music
1 . Music Recording and Engineering 7. Setting up of Recording Services for Clients

2. Music Video Production 8. Production of Audio Books
3. Sound Production 9. Sell of Music Equipment
4. Live Studio Sessions 1 0. Sell of Original Beats

5. Production of Jingles and Soundtracks 1 1 . Music and Sound Consultation Services
for Corporations and Organizations 1 2. Company Merchandise

our vision statement
Our vision is to become one of the top 1 0 music production companies in the United States and abroad.

our mission statement
Our mission is to build a music production company that will become the number one choice for both music
artists and major companies and agencies who require our services.

BUSINESS STRUCTURE

The fact that we are set up to compete with other leading music production companies in the U.S. means that we
must build a business structure that can support our business goal. We will ensure that we hire people that are
qualified, hardworking, creative, customer-centric and are ready to work to help us build a prosperous business that
will benefit all the stake holders, which includes the owners, workforce and customers. As a matter of fact, profit-sharing
arrangements will be made available to all of our senior management and lucrative artists, and will be based upon
their performance for a period of 2 years or more as agreed to by our board of trustees.

BELOW IS THE BUSINESS STRUTURE IN WHICH WE WILL BUILD LOS MUSICK PRODUCTIONS:
1 . Chief Executive Officer
2. Entertainment Lawyer/ Legal Secretary
3. Studio Manager and Operator
4. Music Producer/Engineer
5. Sound/Recording Engineer
6. Admin and HR Manager
7. Marking and Sale Executive
8. Accountant
9. Client Services Executive
1 0. Office Assistant

roles and responsiblities

CEO - Increase management’s effectiveness by recruiting, selecting, orienting, training, coaching, couseling and
disciplining managers; communicating values, strategies and objectives; assigning accountability; planning, monitoring
and appraising job results; developing incentives; developing an environment for offering information and opinions;
providing educational opportunities.

• Responsible for providing direction for the business.
• Creating, communicating and implementing the organization’s vision, mission and overall direction - i.e. leading
• the development and implementation of the overall strategy.
• Responsible for signing checks and documents on behalf of the company.
• Evaluates the success of the organization.

ATTORNEY/LEGAL SECRETARY - Responsible for drawing up contracts and other legal documents for the company.
Advise artists and the company accordingly before producing music, albums, singles or other projects.

• Welcomes guests and clients by greeting them in person or via telephone or Online; answering or directing inquiries.
• Produces info by transcribing, formatting, inputting, editing, retrieving & transmitting text, data and graphics; coordinating case preparation.
• Provides historical reference by developing & utilizing filing & retrieval systems; recording meetings; maintains transcripts; documenting

and maintaining evidence.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks;

participating in professional organizations.
• Enhances department and organization’s reputation by accepting ownership for accomplishing new and productive; exploring optional

opportunities to add value to job accomplishments.

roles and responsiblities, cont’d

STUDIO MANAGER - Responsible for tracking hours during studio sessions and billing clients.
Responsible for managing the company’s recording studio.

• Member of team responsible for selecting the songs that will be promoted and the songs that will be sold as singles.
• Assist in deciding order of songs on album (songs and track numbers).
• Handles any other responsibility as assigned by the CEO.

MUSIC PRODUCER/ENGINEER - Responsible for recording and producing music, jingles, voiceovers, filmscores etc . .
for music artists and other clients.

• Member of team responsible for selecting the songs that will be promoted and the songs that will be sold as singles.
• Assists in deciding the order of songs on album (songs and track numbers)
• Responsible for choosing most appropriate and popular album covers for artists and projects.
• Handles any other responsibility as assigned by the CEO.

SOUND/RECORDING ENGINEER - Responsible for handling any sound related job for the company; helps achieve
certain specific sounds or feelings to fulfill the project.

• Responsible for mixing and producing beats and sounds for our clients; mixing the songs into the final version for the project or album.
• Member of team responsible for selecting the songs that will be promoted and the songs that will be sold as singles.

ADMIN AND HR MANAGER - Responsible for overseeing the smooth operation of Human Resources and administra-
tive tasks for the organization. Maintains office supplies by checking stocks; placing and expediting orders; evaluating
new products and resources.

• Ensures operation of studio equipment by completing preventative maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing the interviewing process.
• Carries out staff induction for new team members/employees.
• Responsible for training, evaluating and assessment of employees and team members.
• Responsible for arranging travel, meetings and appointments.
• Designs job descriptions with KPI to drive performance management for clients.
• Regularly holds meetings with key stakeholders/investors to review the effectiveness of HR Policies, Procedures, and Processes.
• Facilitates and coordinates strategic sessions.
• Works directly with clients in a non-advising capacity, such as answering questions; scheduling appointments and making sure all training

concerns are properly taken care of.
• Oversees the smooth operation of daily office activities..

MARKETING AND SALES EXECUTIVE - Once the album or project is ready, then the marketing team will go out to
market and promote the album or project.

• Identifies, prioritizes and reaches out to new partners, and other potential business opportunities.
• Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects;

assures the completion of all audio/visual projects.
• Responsible for supervising the execution of projects and activities; advocate for client needs, and communicate with clients and artists.
• Develops, executes and evaluates new plans for expanding and increasing sales.

ACCOUNTANT - Responsible for preparing financial reports, budgets, and financial statements for the company.
Provides management with financial analysis, developed 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 risk analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies.
• Responsible for administering payroll.
• Ensures compliance with taxation legislation.
• Handles all financial transactions for the company.
• Serves as internal auditor for the company.

roles and responsiblities, cont’d

CLIENT SERVICES EXECUTIVE - Ensures that all contacts with clients (email, walk-ins, SMS or phone) provides the
client with a personalized customer service experience on the most professional level.

• Through interaction with clients, 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 updated on any new information on the company’s products, promotional campaigns, etc . . . to ensure accurate and

helpful information is supplied to clients when they make inquiries..

OFFICE ASSISTANT - Receives visitors/clients on behalf of company.

• Receives parcels/documents for company
• Handles inquiries via email and phone for company.
• Distributes mail throughout organization.
• Handles any other duties as assigned by line manager.

STRENGTH, WEAKNESS, OPPORTUNITIES AND
THREAT (SWOT) ANALYSIS

Los Musick Productions engaged the services of a core professional in the area of music consulting and business
structuring to assist the company in building a standard music production company that can favorably compete with
other leading music production companies in the U.S.
Part of what was analyzed in working with management in conducting a SWOT Analysis for Los Musick Productions is
as follows:

STRENGTH: Our core strength lies in the power of our team and the state of the art music studio equipment that
we posses. We have a team that can go all the way to give our clients the best value for their dollar; a team that can
make, produce and promote world-class sound. We are well positioned and we know we will attract a mass amount of
clients with our marketing strategy and quality.
WEAKNESS: As a new music production company, it may take a little time for our organization to break into the
market and attract the well-established artists to sign under our label; that is perhaps our biggest weakness. Another
is that we may not have the required cash to promote our business the way we would want to.
OPPORTUNITIES: The opportunities in the music industry are unmeasurable, and we are ready to take advantage
of any opportunity that comes our way.
THREAT: Technology and the Internet, which of course is a major tool for the advancement and gains achieved in
the music industry, can also pose a threat to the industry. The truth is that with the advancement of technology, it is
now easier for individuals to mix up their sounds, and even form soundtrack and other functions with the help of the
mass of readily available music production software applications, programs and plugins.

So, just like any other business, one of the major threats that we are likely to face in economic downturn. It is a fact
that that affects purchasing and spending power. Another threat that we are likely to confront is the arrival of a new
production company in the same location where are target market exists, and who may want to adopt the same
business model as our company.

MARKET ANALYSIS

MARKET TRENDS - Entrepreneurs that are venturing into the music industry are coming in with cre-
ativity and empressive business knowledge. The fact that revenue is nose-diving in the industry does

not in a way stop some music production companies from declaring profits year in and year out.

The trend in the music production industry is that most production companies are trying as hard as possible to
recreate themselves on a regular basis and also to be on “top of the their game. “ This is so because it is easier to find
music production equipment and software applications that a beginner can utilize to produce an acceptable quality
sound.

OUR TARGET MARKET - iWhen it comes to music production, there are no exeception as to who you can market your
music to. There are lots of people out there who are interested in releasing singls, full albums, music video, promos,
etc. . . There are corporations that would need the services of a standard music production company to help them
produce audio for various projects, including jingles and soundtracks for advertising and promotional purposes. There
are authors who would nee the services of a music production company to help produce audio books, and the list
goes on . . .

Above and beyond, our target market as a music production company cuts across different classes of people and
those from all walks of life, and corporate organizations. In light of that, we have created strategies that will enable us
to reach out to various corporate organizations and individuals who we know will benefit from our services. We have
conducted our market research and survey and we will ensure that our company is welcomed and accepted in the
market place.

The following is a list of Music Artists Churches
peole and organizations Record Labels Radio and TV
that we have specifically Adverstising Agencies Small Businesses
targeted to market our Corporate Organizations Other Organizations

services:

OUR COMPETITIVE ADVANTAGE

We are not ignorant to the fact that there are stiffer competitors in the music production industry
in the U.S., however, we have been able to hire some of the best businesses developers to handle
our sales and marketing.
Lost Musick Productions may be a new entrant into the music production industry in the U.S. ,
but we are coming into the industry with core professionals and professional, industry quality
equipment and sound.
Lastly, our employees and artists will be well taken care of, and their living expenses will be among
the best within our category (startup music production company) in the industry, meaning that
they will be more that willing to build the greatest business they can build with us and help deliver
our set goals, and achieve all our objectives.

SALES AND MARKETING STRATEGY

Retail products are not major factor in the music production business, which is why we must do all
we can to maximize any opportunity that comes our way. Our sales and marketing team will be
recruited based on their vast experience in the music industry, and they will be trained, updated
and evaluated on a regular basis, so as to be well equipped to meet their tarkets and the overall
goal of the company.

We will also ensure that our excellent music production speaks for us in the market place; we want to build a standard
music production company that will leverage pm word of mouth advertisements from satisfied clients/artists. Our
business goal is to grow our company to become one of the top 10 music production companies in the U.S. , which is
why we have mapped out strategies that wil help us take advantage of the available market and grow to become a
major force not only in the U.S. , but on an international scale.

Los Musick Productions is set to make use of the following marking and sales strategies to attract clients:
• Introduce our business by sending introductory letters alongside our brochure to organizations and key stake

holders in the music industry in Texas, New York, Los Angeles, and other parts of the U.S.
• Adverstise our business in relevant entertainment magazines, newspapers, TV stations, and radion stations.
• List our buisness on internet search engines, as well as yellow page ads and local directories.
• Attend relevant local and international expos, seminars, concerts, etc . . .
• Create different packages for different category of music artists, authors and corporate clients in order to work

with their budgets and still produce professional quality music, jingles, soundtracks, audio booke, etc . . . for them.
• Leverage on the internet to promote our business.

SOURCES OF INCOME

Los Musick Productions is established with the goal of maximizing profits in the music industry and we are going to go
all the way to ensure that we do whatever it takes to attract artists thaat wil sign under our label.

LOS MUSICK PRODUCTIONS WILL GENERATE INCOME
BY OFFERING THE FOLLOWING SERVICES:

Music Recording
Music Video Production

Sound Production
Studio Sessions

Production of Jingles/Soundtracks for Organizations
Marketing and Sales of Music

Setting up of Recording Studios for Clients
Production of Audio Books
Sell of Musical Equipment

Music/Sound Consulting and Advisory Services
Live Performance Booking and Coordination
Artist Management and Development

sales forecast

One thing is certain when it comes to music; it never dies and the demand for good music will continue to grow. This
goes to show that any music production company that is known to always produce good music will continue to grow
and attract talented artists and that will translate to an increase in revenue generation for the business.
We are well positioned to take on the available market in the U.S. and are quire optimistic that we will meet our
set target of generating enough profit from the first year of operation and grow the business and our clientele base
beyond the Texas border, and beyond to a national, and international stage.
We have been able to critically examine the music production market and we have analyzed our chances in the
industry, we have also been able to come up with the following sales forecast. The sales projection is based on
information gathered in the field and some assumptions that are peculiar to startups in our region.

Below is the sales projection for Los Musick Productions, it is based on the location of our business
and other factors as it relates to record label startups in the U.S.

FIRST YEAR = $40,000 SECOND YEAR = $75,000 THIRD YEAR = $125,000
NOTE: This projection was done based on what is obtainable in the industry and with the assumption that there
won’t be any major economic meltdowns and/or major competitors offering the same production services in the
same location. Please note that the above projection may be lower and at the same time, it may be higher.

OUR PRICING STRATEGY

It is important to point out that music studios charge by the hour, so it is the responsibility of the music producer to
ensure that that set targets are met within the stipulated time. The more time you spend in the studio, the more mon-
ey you would have to pay for studio services.

No doubt, hourly billing for music studios is a longtime tradition in the industry. However, for some types of music/
record contracts, flat fees are adopted. As a result of this, Los Musick Productions will charge our old clients/artists
a flat fee and charge new clients/artists hourly when they make sure of our music studio to record their project or
produce beats for their albums.

At Los Music Productions, we will keep our fees below the average market rate for all of our clients by keeping our
overhead low and by collecting payment in advance. in addition, we will also offer special discounted rates to startups,
nonprofits, cooperatives and small social enterprises who engage our services to help produce musical/audio projects.

PAYMENT OPTIONS

At Los Musick Productions, our payment policy will be all inclusive because we’re quite aware
that different people prefer different payment options as it suits them. Here are the payment options that we will
make available for our clients/artists:

• Payment by bank transfer
• Payment via Online bank transfer
• Payment via cashiers check
• Payment via bank draft
• Payment via major credit or debit card
• Payment with cash

Professional Services at Unbeatable Prices!

PUBLICITY AND ADVERTISING STRATEGY

We have been able to work with brand and publicity specialists to assist us in mapping out various
strategies that will help us walk our way into the heart of our target market. We are set to take the

music industry by storm, which is why we have made provisions for effective publicity and
advertisement of our music production company.

Below are the platforms we intend to utilize to promote and advertise our company:

• Place adverts on both print and electronic media platforms • Offer Pro Bono services as a part of our community
• Sponsor relevant events, shows and programs.
• Maximize our official Web site to promote our business. • Ensure that we strategically place our banners, billboards
• Utilize Internet and Social Media platforms such as
and other visuals in the service region.
Youtube, Instagram, Facebook, Twitter, Linkdin, Badoo, • Brand all of our official vehicles and ensure that our
Google+ and more to promote our business.
trademark label is boldly printed on all of our music

albums/project and advertisements.

FINANCIAL PROJECTIONS AND EXPENSES

The cost of setting up a music production business to a larger extent has reduced from what it used to be; many
thanks to the advancement of technology and perhaps the Internet. These days it is more common to see people set
up a music production studio at their houses or a hotel room. All they need to do is register a business and set up a
mini studio! Basically, it is not expensive to start a music production company in the U.S. , with the exception of the
prices of setting up a standard, professional quality studio. The amount required to start a music production company
may vary slightly from state to state.
Part of the factors that can influence the startup cost of a music production company is the amount needed to rent or
lease a facility, the cost of the equipment you would need and the money needed to brand your business.
When it comes to purchasing microphones and head phones, we will go for the highest quality for the price it will
cost us about $300 or more. For the mixer we will go with the best quality brand for the price, it will cost us about
$200.
We would need to create a budget for other necessary software and hardware .
We have also prepared a good budget for a monitor; the monitor is one of the most important gadgets we require.
Our budget is set at no more that $400 for this item.

Essentially, this is the area we are looking to spending the majority of our startup capital on:

1. The total fee for incorporating the business in Texas - $250.00 5. The cost of equipping the music studio - $2,800
2. The budget for Liability insurance, permits and licenses - $299 6. The cost of launching an official Web site - $125
3. The amount needed to acquire a suitable office facility with 7. Budget for paying at least 5 employees for 3 months- $12,000
8. The cost for utilities - $5,000
enough space for a standard music studio. (reconstruction of 9. Additional Expenditures (Signage, Advertising, Promotional
the facility inclusive) - $10,000
4. The cost for equipping the office (computers, printers, Products, Events, Sponsorships, and Marketing) $3,000
fax machines, furniture, telephones, filing cabinets, other 10. Travel and Lodging - $5,000
electronics - $3,000 11. Miscellaneous - $2,000

https://www.sba.com/texas/licenses-permits/

Based on the report from the research and feasibility studies, we will need about $2,800 to set up a medium-scale
music production company. Here are some of the key equipment and gadgets we would need:

• Headphones • Outboard effects (compressors, reverbs, equalizers, etc . . .
• Mixing Consoles • DE-essers
• Multi-track Recorder • Cables
• Pre amps
• Microphones • Computers
• Sound Containment
• Reference Monitors (loud speakers with flat frequency • Audio interfaces
• Monitors
response) • Software
• Keyboard
• Drum Kit • Effects Racks
• Digital Audio Workstation • CD Duplicator & CDs
• Music Workstation
• Recording booth and Recording Light • CD Printer

GENERATING FUNDING/STARTUP CAPITAL

Los Musick Productions is going to start as a private business that will be solely owned by Merecal and Carlos Durden.
Both of them will be the financial of the business, but may likely welcome other partners, which is why
they have decided to restrict the sourcing of startup capital to 3 major sources:
• Personal Investors and Savings
• Soft Loans from Friends/Family Members
• Bank Loan

BUSINESS GROWTH (SUSTAINABILITY & EXPANSION STRATEGY)

It is easier for business to survive when they have a steady flow of business deals/customers/clients utilizing their
products and services. We are aware of this, which is why we have decided to offer a wide array of music produc-
tion-related services and also to work with music artists, corporate organizations and authors.

We know that if we continue to produce beats, albums, audio books, soundtracks and jingles, there will be a steady
flow of income for the company. Our key sustainability and expansion strategy is to ensure that we only hire compe-
tent employees, create a conducive working environment and employee benefits for our staff members.

We know that if we implement our business strategies, we will grow our music production business beyond the U.S.

CHECKLISTS AND MILESTONES: • Writing of Business Plan
• Business Name Availability • Drafting of Employees Handbook
• Business Incorporation • Drafting of Contract Documents
• Renting of Office Facility
• Building of Music Studio • Design of Company Logo
• Intellectual Property Protection and Trademark • Graphic Design and Printing of Packaging Marketing/

• Opening of Corporate Bank Accounts Promotional Materials
• Opening of Online Payment Platforms • Recruitment of Employees
• Application and Obtaining Tax Payer’s ID • Purchase of Needed Studio/Musical Gadgets, Furniture,
• Application for Business License/Permit Office Equipment, Electronics, Appliances, etc . . .
• Creating Official Website for Company
• Purchase of Insurance for Business • Creating Awareness for the Business
• Conducting Feasibility Studies • Health and Safety and Fire Safety Arrangement
• Establishing Business Relationship with Key Players in the
• Generating Part of the Startup Capital
• Applications for Bank Loan Industry

lmp signed artist structure/campaign

PRIMARY MARKETING - 6 Month Campaign ($1,200) Accelerated Marketing Campaign - Gaining
Massive Interest/Promotion For A Lead Single, Mixtape Or Album Release, Targeting Specific Fans &
Locations For Accelerated Organic Growth
6 Months Campaign ($3,600)

Complete Marketing Campaign - Highly Niche Targeting Specific For Exponential Interest/Promotion For A Lead Single,
Mixtape Or Album Release Targeting Specific Fans & Locations For Exponential Organic Growth.

Publicist/PR. ($1,100) - For 3 Months MIKO Dreamz PR will not only create awareness for the music
project, but for all moving pieces surrounding it as well as the brand itself for the duration of service.
Music Video Production - The base rate for each music video is $35. This does not include location
booking should it be required.

touring plan

Our event management partners, will set up a 5-city tour starring the featured artist. The partner
company sets up the date and Los Musick Productions becomes the acting promoter with freedom
to run the event however we see fit at the discretion of the featured artist. This is one of the best
deals we and our partners have to offer. This is a way for an artist to get their music heard, gain
visibility and make money in the process.
If the artist averages 400 fans per concert at $20 each, the artist and LMP will make approximately
$40,000 dollars per event. The artist will have the opportunity to set up their merchandise at each
concert they’re headlining, giving them the ability to easily make an extra $1000-$3000 of personal
profit. Even after expenses, the artist will make a tremendous profit while building their brand and
fan base.
By subscribing to one of the service packages, we’ll add online promotion, street promotion, and
give the artist all the tips and tricks to maximize their tour during our consultation sessions.
• We will set up a 5-city concert tour.
• Artist will select all 5 cities.
• Artist selects the tour starting and ending dates.
• Each concert date will take place at a nightclub or event center.
• Artist will receive 100% of the door at all concerts, minus any additional expenses owed.
• Artist sets the price for entry into each concert.
• Venue provides sound system, lighting, and mics.
• Artist responsible for own travel expenses unless negotiated with LMP.

• Artist provides own cashier and DJ at each concert unless otherwisIeNaITrrIAanLgCeOdSwT:it$h3L,M50P.0.00