Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Transcript of Karma Karaoke
Daphne Nieh Mission Statement To provide first-rate entertainment to people in the Lower Mainland
To be the first private karaoke venue in the area to provide Hindi and Punjabi karaoke music
Showcase local music and comedic talent to support them Funding Requested Financing will be through a combination of debt and equity investment
The capital cost associated with starting up this venue includes the cost of : Furniture, fixtures and equipment - $35,000
Leasehold improvements - $75,000
Installation costs for the equipment - $4,000 Total Cost: $114,000 The debt portion of financing will come in the form of a $75,000 bank loan at an interest rate of 10%
This loan will be secured by a personal guarantee from each owner of 25% of the loan
The equity portion of funds will come from a $30,000 investment by each owner, totalling $120,000. This will give each owner 25% of the common shares in teh corporation Valuation The valuation of Karma Karaoke was based discounted cash flows over the next 5 years
The discount rate was determined to be 15% based oon the assessed risk associated with the karaoke business
The valuation of the company was approximately $500,000 Objectives and Key to Sucess Objectives
Gross Sales of $266,429 in year 1 and $429,605 by year 3
Gross margin of 100%
Net income more than 20% of gross sales in year 1 and more than 40% by the 3rd year
Keys to Success
Excellence in entertainment
Developing a population of regulars
Becoming a part of the community Target Market Our primary target market will consist of Surrey residents who enjoy English, Hindi or Punjabi music
SFU Surrey students Market Survey Age Group
Have you ever gone to a Karaoke venue?
How often do you go?
What types of music do you like? respondents ranged from 10 to 30+ and the most common response was from people aged 19 - 24 Yes (40), Plan on Going (5), and No (60) Most people go once a year or never The most popular response was English and the second most popular response was Indian Would a Karaoke venue that offer Bollywood music interest you and would you go?
Have you ever gone to a Karaoke venue that offered Bollywood music?
Where have you gone Karaoke before? Yes (33) and No (27) Yes (4) and No (57) The majority of people have gone in Vancouver and Surrey or other What is the most you would pay for 1 hr of karaoke per person? What are some of the things that you liked about these places? What are some of the things that you didn't like about these place? Marketing Schedule SWOT Strengths First private karaoke venue in Metro Vancouver to offer Bollywood music
Company executives have various South Asian media contacts Weaknesses Karaoke business is risky
Many karaoke regulars already to to other venue Opportunities Strategic location with opportunity to grow
Potential to serve food and alcohol in the future Threats Other businesses could catch on and add Hindi songs to their own collection
Similar businesses may emerge Competitive Edge Karma Karaoke offers Bollywood music to serve the special needs of the South Asian customer.
Unique lounge-like facilities and will thus establish a reputation of being the most comfortable yet luxurious karaoke venue in the Surrey area. Location Located at 13650 102nd Ave in the Central City area
This is in an area that has seen a lot of growth over past 5 years and potential for further growth
It is close to Surrey Central Skytrain Station, a major hub for Surrey buses Facilities - Floor Plan Pricing Chart Sales Forecast Break-even Analysis Growth Plan In the first 3 years we hope to establish a solid customer base
Continually expand the range of songs offered and we may begin to offer music in other languages
In our 4th and 5th years we hope to expand our market to include people aged 25-30
If feasible, we will consider opening another location in Vancouver within the next 10 years Exit Strategy The owners would ideally like to run Karma Karaoke for 10-15 years.
At this point the owners will look to sell the business or find professional management services to take over the operations.
Based on the success of the company, the owners will look into the possibility of franchising the company. Thank You! Questions?!