Business name Tony Coleman t/a theLAB Business / personal aims and objectives The business will fall into 3 separate categories: - theLAB interactive DVD magazine, theLAB performance as VJ’s and the development and sale of bar & venue DVD’s. These will be expanded upon under the heading of Products / services later in this business plan. Business history Since leaving school and moving to Wales in 1988, Tony has had a passion for all things computerised. His hobby was to design artwork and graphics at home on his computer and this alongside his interest in the clubbing scene was to develop into a prospect for making money. Whilst working in local pubs, he wrote software to enable him to produce VHS videos containing original designs, which were used to promote in-house events and display bar tariffs etc. A nominal fee was charged for the development and production of these tapes. He formed a friendship during the early 90’s with a local DJ named Danny Slade and went on to develop the idea of computer generated designs. These were to be shown as a graphic extension to Danny’s musical performances in local and Swansea based nightclubs. Whilst showing his artwork at the ‘Escape’ chain of clubs, he was also involved in the successful networking of digital links and projection of his images between U.K and European clubs. He worked as a technical support adviser for Virgin.net during this time while continuing to develop his computing hobby. In 2001 he moved to Norfolk, and was employed by a local company (Wendals Herbs) as their graphic designer. Whilst in their employ he developed and instigated their company website.
On moving to Leicester in 2002, he re-established his interest in the clubbing scene, and whilst working for ‘Centrica’, he met a well established local DJ named Marc Fuccio who was also working full time with the company. Tony showed Marc his idea for a graphics show, and was initially looking to produce DVDs for Marc’s personal use, which would include custom designed logos etc. After much discussion, it was decided that there was plenty of scope for a second person to work alongside Marc, as a VJ. This would involve not only the production of original DVDs and artwork, but also the live mixing of various graphic inputs in order to complete a ‘total immersion’ clubbing experience. His greatest strengths are his continuing passion for developing his designing and his proven track record of live performances at the ‘Escape’ nightclub chain. Tony Coleman Aged 35, single. Currently unemployed & on New Deal new business start-up plan. Qualifications •
City & Guilds stages 1 & 2 in Pascal and Basic computer programming.
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City & Guilds stage 1 in COBOL programming.
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City and Guilds in Computers and Computing.
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Registered Macromedia developer.
Experience Over the past 18 years Tony has worked within the leisure industry.
This has
included bar-work, promotion and sales, and the proven development and supply of video graphics to the night club trade.
Product / Service There will be three areas that will need developing under the banner of theLAB. They are: •
theLAB. The ‘performance’ facet of the enterprise.
•
‘theLAB’. The interactive DVD based magazine.
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The development of DVD’s for use in bars and venues for promoting bar tariff’s or forthcoming nights/themes. theLAB VJ performance
The performance side of theLAB involves 3 parts. •
The rental or supply of required projectors and the rigging of all associated materials (mixers / matrix’s / drapery) required to produce and perform live visuals at each venue.
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Pre-production of all venue based logos. These are charged, based upon development time, and at the end of the night remain the property of the venue whilst theLAB retain all copyright over the animation and design.
•
theLAB will provide the visuals for the evening. The performance involves the mixing and projection of graphic loops that have been developed to accompany any given style of music. At a later stage it is envisaged that with the addition of a video camera and direct streaming that the visual effects can be further enhanced. This live input can be mixed with the graphics and projected onto the available walls, ceilings or screens.
‘theLAB’ interactive DVD magazine theLAB, will be developing and selling a fully interactive DVD magazine for visual editors / club goers who wish to involve themselves with VJing or straight visual editing. theLAB magazine will not only include complete VJ related software (for PC and Mac formats), but also tutorials, hardware and software reviews, video interviews with the top VJ crews in and around Europe and music videos. But also includes the ability to use the contained visual loops immediately as a VJ tool through a standard domestic DVD player with remote control. This live aspect of theLAB magazine has been in development for the past 18 months, and has been successfully used in recent not for profit gigs around the Midlands with good feedback from existing VJ crews and members of the public who had an immediate interest in it’s use. The VJ crews that expressed interest have requested to include their own loops/show reels on the forthcoming quarterly releases as well as participate in the interviews and tutorials. The magazine DVD’s will be charged at a flat rate of £10 per disc, this includes the cost of the disc, replication, printing, case etc.
It is expected that the average
magazine content will last for 60 to 90 minutes. This is outside of the interactivity side of the magazine.
Bar & venue development The development of the interactive DVD has led to the further development of a DVD for use in bars and clubs where they have installed plasma TV’s or projectors but do not require the full services of a VJ. The sites I have enquired into are interested in the facility to advertise forthcoming events or bar tariffs via DVD. This version of the DVD is a quick conversion of the current magazine disc without the interactivity or magazine content and will be uniquely branded as per venue. Costing each disc will be in the region of £100 - £150 per DVD and duplicated on a disc to disc basis as opposed to replicating them, thus keeping the production costs low.
Product/service life cycle The product/service range of a business is one of the major attributes, which determines the style that the business will adopt, and the directions it will take in setting its business strategies. For example, a business, which offers products identical to those of its competitors, is likely to be forced to compete on price A business whose products and services can be distinguished from those of competitors and are perceived by customers to be of higher quality, may not have to compete on price and may not need extensive promotion programs, as sales are achieved through word of mouth . We believe that theLAB falls into the latter category, through an aggressive marketing strategy we will be able to target prospective individuals via the use of existing online websites that are aimed directly at the club scene and the advance of interest in the VJing scene. Customer needs change over time, and products and services must be adjusted to meet those changing needs. The flexibility of the service offered means that it can react quickly to the changes in music tastes or club culture that may arise. Product/service development Product development begins either with an existing product that is capable of modification or, as in the case of theLAB, an idea that has been developed into a product. The key requirement is to accurately define an existing or potential need in the market place and develop the product to meet that need. Introduction - This phase occurs following the development and placement of a new product/service on the market. Due to low customer awareness, sales would be relatively low.
Due to available marketing awards, issue ZERO of theLAB’s
magazine will be freely available via online download for both the PAL (European) and NTSC (American) TV systems to maximise potential customers. Each physical issue of ‘theLAB’ will be professionally replicated and will be shrink wrapped as per any quality DVD product.
Growth: - This phase sees an expansion of sales as customers accept the product/service. New competitors may enter the market increasing competitive pressures; however it is here we start to add new product features, thereby expanding the overall market. Maturity: - This phase sees a consolidation when sales growth levels off, due to sales largely being repeat purchases by existing customers, since the majority of potential buyers have already been obtained. Before pricing strategies are implemented, awareness of the product/service's life cycle is important. This life cycle is a typical sales pattern over time from introduction onto the market to its eventual decline as new, more innovative products displace it, or until the demand for it falls due to changes in customer requirements Target market & target size Due to the business being based in Leicester, there is a huge changing local population, provided by the various University complexes throughout the city in addition to the resident local population that supports a diverse ethnic mix. The age of the target market can fall between 18-unlimited years. The total number of students registered at Leicester University for 2003 reflects this diversity. With 7,140 U.K undergraduates and 777 foreign students, the post-graduate students and part timers, boost these numbers to a total of well over 9,000 students. This is an ever-changing potential customer base. With the contact that has already been made through the Student Union, this is an area that is ripe for development. There are a further 10,000+ students registered at the De Montfort University, and this is the base for the graphic design department that is planned to work alongside the development of theLAB. With the increase of interest in VJing, and the plethora of websites and traditional paper printed magazines out there, the immediate benefit of theLAB’s magazine is it’s facility to mix your own visuals without requiring any other hardware other than a
standard domestic DVD player and it’s remote control. This will appeal to the thousands of bedroom DJ’s out there who are vying for bigger gigs. The facility to bring visuals for their own gigs would add value to any venue that was booking them.
Existing competition – SWOT analysis By considering the strengths, weaknesses, opportunities and threats in relation to the venture, we have established theLAB’s potential in the market place. Through extensive research via the Internet, it has not been able to find anyone who offers the same or similar services that theLAB has to offer. There are established VJ’s who create graphics purely for their own use, but they do not supply them to order or as a customised package for other artists to use. There are also a number of companies that supply ‘off the shelf’ graphics on DVD, but again they are not customised to meet exclusive purchaser’s requirements, nor do they allow the level of interactivity that theLAB encourage. This infers that with the correct development of the venture, there is the potential to establish a niche market.
STRENGTHS
WEAKNESSES OPPORTUNITIES THREATS
Technical
Attitudes of
experience
suppliers to young
entrants into the new market
Will to succeed
entrepreneurs Lack of presence in Concept of
Niche target market
market
performance is
Feedback from
Levels of
‘transferable’ Possible marketing
early release of
experience in ‘new
through established
issue ZERO.
product’
chains (HMV)
Copycat
theLAB SWOT At this time, theLAB, are the only people offering this service. There have already been approaches made by other DJ’s in the area looking for information on having graphics developed for their own forthcoming events on DVD, and also the possibility of theLAB collaborating with them at these events. Marketing plan
The first aim is to get the name of theLAB known in the area, and to educate the target market as to the concept of a VJ. In order to establish the existing habits of the target market, a questionnaire was devised.
This introduced the concept and
established the potential average spend of the customers along with their preferences in music and current type of venue used. Once issue ZERO of theLAB’s DVD magazine is completed, replicated and packaged, the website (www.thelab.org.uk) will be setup and allow for the download of the afore mentioned PAL & NTSC versions. The download will only be available once the visitor to the site has registered a current email address. This database will be for theLAB’s use only and will be used to keep them updated on forthcoming interviews / development / VJ loops and music videos. The development of the website will assist in getting the name and logo into the public domain. It is hoping to develop the site, not only to be a machine to publicise theLAB, but to become a forum for VJ’s / clubbers / DJ’s in the UK, and a good medium to gain feedback for the events. Web based advertising will be via the long established websites for clubbers. With good rates on www.dontstayin.com for a guaranteed minimum of 30,000+ hits and specific targeting of location, theLAB will be able to specify that London or Brighton would be hit with the banner ad’s and the subsequent data traffic would aid in the development of the projected profit and loss forecasts.
Premises and equipment Premises. The production and development of the graphics and DVDs for sale will take place at the residence of Tony Coleman.
There is no need for further premises in the
foreseeable future. The premises used for the performance side of the enterprise will be those established in various recreational venues. The buildings, security and structural insurances costs will all be borne by the owner of those establishments. Equipment The equipment needed to start the project will fall into two parts. The first is a list of both hardware and software requirements that have already been purchased. They are sufficient to begin the venture, but the further items that are shown will be required over the following 3-4 months in order to develop the presentations to their best potential. Capital expenses to date:
1 x Edirol Video Mixer @ £799.00
1 x Epson Projector @ £750.00
1 x TV Transmitter and receiver @ £139.99
1 x DVD recorder @ £70.00
1 x Bluff Titler software @ £29.99
1 x Flowmotion Software @ £87.00
1 x Website Registration @ £6.05
Once all these items have been procured, a full performance using both front and rear projection of graphics can take place. The technical unit will be self-contained, and there will be the capability to mix live audience film with the projected artwork.
Legal matters Setting up As the business will be set up on a sole trader basis there are only a few legal matters to address. The business holder will need to register as self-employed within three months of starting up and ensure that the business complies with all relevant government Acts of Parliament, such as; Trade Descriptions act 1972, Sale of Goods Act 1979, Supply of Goods and Services Act 1982, Data Protection Act 1984, Consumer Protection Act 1987 and Price Marking Order 1991 (www.startups.co.uk). ‘As a sole trader your profits are taxed as any other income by the Inland Revenue. And as you are self-employed your tax will be self-assessed. The amount you owe is calculated after business expenses and personal allowances have been deducted.’ (www.startups.co.uk). Income falls under the schedule D taxation system and is paid twice a year. The level of National Insurance contributions paid is also based on profits but this must be paid weekly. If turnover exceeds £52,000 a year you must also apply for VAT registration. The business will eventually be run from its own bank account to separate it from personal spending. Insurance The business will need public liability insurance, as the electrical equipment could be a potential hazard to those in the venue. This is currently £300pa plus tax, making a total of £315. The cost of insuring equipment is minimal at just £21 a month, as the household cover has been extended to cover the electronic equipment. With fully comprehensive cover, it is also insured for £1000 per item whilst outside the premises. Copyright The business needs to be aware of copyright for the graphics produced so that the product remains unique. ‘Copyright is the legal right of an author or creator (or other copyright holder) over the reproduction of his/her work. These rights fall into two classes: economic rights, which are those concerned with financial interests, and
moral rights, which are to do with the reputation of the creator of the work.’ The business does not have to do any thing to gain copyright. ‘Ownership of copyright is not like ownership of a patent. It is not necessary to apply to any official body to get copyright, nor is it necessary to include the copyright symbol © in any publication. The © symbol serves as a reminder to readers that the material concerned is covered by the copyright laws and indicates who the copyright holder is. However the absence of the symbol should not be taken as any indication that that the material may be used beyond the limits specified in copyright legislation.’