Business Proposal By
William Harris September 24, 2014
Executive Summery Throughout history there has always been a love for music and musical instruments. Through the years, household instruments have become increasingly popular, especially stringed instruments. One of these instruments, the ukulele, has passed the test of time over and over again, and is making a prominent comeback in the music scene. There are many legends about how the ukulele received its Hawaiian name, but before it was introduced to the islanders, it was known as the machete de Braga, a small stringed instrument from the Braga province of Peru. In 1842, Peruvian settlers introduced the instrument to Hawaiian’s and it quickly gained notoriety, become a staple in the islander’s culture. The ukulele gained even more prominence after being introduced to the American mainland. From 1915 to 1935 the ukulele was the most popular instrument in the American household. After taking a backseat to other stringed instruments such as the guitar, the ukulele is making a distinguished comeback within the music scene. Everyone from amateurs to professional musicians seems to be picking up and playing the ukulele. The ukulele industry is booming. That is why we are in need of the ukulele shop 4 Strings. 4 Strings is to be a dedicated ukulele shop that that acts as a vendor for various ukulele brands. The shop will include all kinds of ukuleles, from beginner to expert levels, so that players of all experiences can find the right ukulele for them.
The shop will also act as a hub for local music, promoting the need for music in everyday life. Project Description 4 Strings is to be a musical establishment dedicated to the selling and promoting quality ukuleles to musicians of every level. We will sell a wide variety of ukuleles from several different manufacturers to offer customers the best selection. Everything from premium authentic Hawaiian ukuleles to traditional starter ukes such as Lanikai and everything in-‐between will be offered in the store. Additionally we will offer ukuleles in various types of styles, woods, and sizes. There are very few dedicated ukulele stores in the United States. The majority of the stores that are in existence are located in the Hawaiian Islands. The few that are in the mainland are mostly found on the west coast. This business will be located in Columbus, Ohio, a hub for the ukulele movement, and also prime real estate for a ukulele store. This centralized city will make it possible to connect and distribute our products to customers from coast to coast. Learning will also be a key component of the business as well. We will sell a variety of ukulele instructional booklets, chord charts, magazines, and DVD’s. Newcomers and intermediate players will also have the opportunity to learn from seasoned players. Lessons will be offered in-‐store with the potential for scheduled lessons to happen in-‐home by request at an additional cost.
In order to maintain a competitive edge over competitors 4 strings will have a dedicated online store. Also, In addition to being able to purchase ukulele’s online and in-‐store, customers will also be able to order ukuleles from our trusted network of luthiers. Customers will be able to have their ideal ukulele hand crafted for them by a luthier of their choice and made to their specifications. Customers will be able to choose from a variety of woods, headstock and body styles, fret boards, inlays, and sizes. Rational The reasoning for this proposal is simple. There is a demand for high quality ukuleles to be made available throughout the country. 4 Strings will be able to meet that demand while expanding the ukulele movement across the nation. I am choosing to start this business because of my background as an ukulele player. Because I have played the ukulele for a couple of years, I have seen first-‐hand the need for a better option when searching for ukulele. There are indeed many music shops that sell ukuleles; the problem is that they either offer only a couple of brands, or rather cheaply put together instruments. 4 Strings will be a dedicated ukulele shop where amateur and serious ukulele players can search from ukulele dealers and manufacturers from all over the world. We will have the largest selection of ukuleles under one roof. The shop will be located in a currently abandoned 3 story building with a basement in downtown Columbus. The building will need to undergo some
remodeling, however, we can work with most of the framework of how the building currently stands. The shop will have three different levels for a complete experience. Each level will be divided into sections where customers can view ukuleles by different descriptors. The first level will feature ukuleles that are made in the United States. This floor will be sectioned off according to the major American Brands. Within each section customers can further specify their search by the style, wood, and size each of the brands offer. The second floor will feature different ukuleles from around the world. This floor will be sectioned off by continental regions. Within each of these sections there will be subsections and learning centers describing the special elements of the ukuleles by their region while also showing them products from these regions. The third floor will be dedicated to our luthier partners. This floor will be sectioned off by different luthiers. Customers will be able to visit each section and see each luthier’s work and products they have for sale. They will also be able to order custom ukuleles directly from these luthiers via order forms made available in each section. The basement will be a dedicated learning center. Customers and ukulele enthusiasts will be able to take lessons as well as browse an expansive collection of chord charts, song booklets, instructional DVD’s and more. Additionally we will have 8 fulltime representatives working for the business. We will be targeting a wide audience for this business. Since music lovers come in all ages, shapes, and sizes, we will be targeting those that most likely want
to learn a string instrument without the complexities of learning guitar. We will be promoting the ukulele as a gateway instrument for inexperienced string players who might want to eventually learn the guitar. Budget
The proposed budget for the project includes a projection analysis of all
anticipated expenses and revenues, as well as a projection of expected profits forecasted over the next 5 years. The proposed budget is as follows: Year 1 Revenue
Expenses
Renovations
Materials
Cost
Capital (40,000)
(2,500)
Rent
(15,000)
Insurance
(10,000)
Products
(50,000)
Labor
(192,000)
Product Sales
200,000
Lessons
75,000
Total
(34,500)
Year2-‐5 Revenue
Expenses
Operating Loss
(34,500)
Facility Upkeep
(15,000)
Rent
(60,000)
Insurance
(40,000)
Products
(50,000)
Labor
(770,000)
Product Sales
750,000
Lessons
225,000
Total
Cost
Capital
5,500
Conclusion
4 Stings has the potential to take advantage of the new ukulele movement
and even drive the movement forward. It will offer those interested in learning a stringed instrument a viable option for a starter instrument as well as the means to learn how to play it. Customers will be enthralled by all of the top quality brands that will be represented at the store, as well as the option to connect with a luthier to have a personal instrument made for them. 4 Strings has the potential to be a great business and as such we are requesting the funds to make this business a reality.
1545 Litchey Rd Grand Rapids MI 49507 616-438-8537 fourstrings.com
September 30, 2014 Mr. John Smith 1234 Rendezvous Ln Big Rapids, MI 49307 Dear Mr. Smith: We are contacting you in regards to your ukulele luthier skills. Four Strings is currently working with luthiers to contract work through the shop. This provides interested customers an avenue to have personalized instruments made for them as well as exposes the luthiers work in order to increase their business. As such, we would like to extend an offer to contract with you. By signing a bi-‐annual contract with our shop you will receive: • Your own personal space in the luthier section of the shop to show off your work • Specialized order forms for products for you to produce • Promotion within and outside of the shop • And more All of these services will be available for only 15% of total sales made through our shop. We at Four Strings hope you will consider the opportunity to work with us, as your luthier skills have been recognized in the community. Thank you in advance for your consideration. We will be in contact with you within the coming weeks to see if you are indeed interested. Best regards, William Harris CEO Four Strings Ukulele Shop
545 Litchey Rd Grand Rapids MI 49507 616-438-8537 fourstrings.com September 30, 2014 Mr. John Jones 4321 Maple Rd Big Rapids, MI 49307 Dear Mr. Jones: It has come to the shop’s attention that that the ukulele you have ordered through Smith Luthier’s is currently in production. Estimated time for the completion of your ukulele is 3 weeks. The specialized ukulele you order is being made to the following specifications: • Maple body, back, and sides • Rosewood frets and fingerboard • Maple headstock • Mother of pearl inlay and tuners We hope that your experience ordering from the Four String’s Luthier shop was positive. We hope that you will come back to the store for all of your ukulele accessories and needs. Best regards, Will Harris CEO Four Strings Ukulele Shop
545 Litchey Rd Grand Rapids MI 49507 616-438-8537 fourstrings.com September 30, 2014 Mr. Eric Jones 5678 Dirt Rd Big Rapids, MI 49307 Dear Mr. Jones: We would like to thank you for your generous donation of several vintage ukuleles to use as décor in our shop. As such, we would like to offer you to accept a token of our appreciation. I am happy to tell you that we will be honoring you by naming the third floor of our shop the Eric Jones Luthier Shop. At Four Strings we pride ourselves in providing an array of ukuleles for enthusiasts to choose from. We also take the time to ensure that every customer has the knowledge of the ukulele that they are purchasing. In addition, we also strive to ensure that players know the history of the instruments, and appreciate vintage ukuleles, such as the ones you have donated. On behalf of the entire Four Strings family I would like to again say thank you. In addition to naming the Luthier Shop after you, we will also be have a Grand Re-‐ opening featuring your ukuleles, to which you will be invited. We hope you will take time to join us for this event. Best regards, Will Harris CEO Four Strings Ukulele Shop
545 Litchey Rd Grand Rapids MI 49507 616-438-8537 fourstrings.com September 30, 2014 Mr. Daniel Watson 9876 Spruce Rd. Big Rapids MI, 49307 Dear Mr. Watson: Thank you for your purchase of your ukulele from our Luthier Shop. Your order has now been completed and is pending shipment. In order to complete your order and have it shipped, please pay the full amount of your purchase in store or online at fourstrings.com. At Four Strings we pride ourselves in partnering with high talent luthiers that can provide enthusiast with instruments of their exact specifications. Due to the contract negotiations with our luthiers, we are only able to ship orders that have been paid in full. In order process your shipment further, please pay your order amount in full. If you have already paid your order in its entirety please disregard this message. Once again, thank you for your purchase. Don’t forget to come back to the shop for all of your ukulele needs! Best regards, Will Harris CEO Four Strings Ukulele Shop
Fall Newsletter October 7, 2014
Employees of the Year U. I. Y.
S. R. Y.
Justin Goodman: Justin is a Senior at SVSU studying piano music performance. He also has a keen knack for playing the uke and was voted Ukulele Instructor of April Hannon: April is a avid ukulele lover and student of marketing at SVSU. She was voted this
A Note From the CEO Dear Ukers: It’s been a great first year for Four Strings. We could not have asked for a better response to our stores grand opening last fall and the continued support that all of you are giving. I am happy to announce that our business is doing far superior than our initial projections, and as such, we are planning to expand the shop into other cities across the United States. The first new store will be in downtown Detroit, MI where we will be renovating the abandoned Baker’s building. The shop will offer a fresh and unique take on the shop in Grand Rapids, but customers will be overwhelmed by the bigger space and even more choices ukuleles on the show floor. This new shop is expected to be open by Dec. 7, 2014 with other shops expected to follow in the coming months. It’s a great time to be a Uker!
“We provide opportunities for enthusiasts of all ages and ability to come together and do what they love.”
Creating a New Experience. By: Will Harris When creating this business from the ground up, we wanted to focus on the customer. We wanted to create an entire ukulele experience. I think that we provide opportunities for enthusiasts of all ages and abilities to come together and do what they love. One thing that remains special to this business is the partnerships that we have with professional luthiers in the area. By working with these incredibly talented individuals we are able to give our customers something that no other music shop in the nation can give them, endlessly customizable instruments right at their fingertips. Another we are striving to create an experience is to offer lessons to enthusiasts of all skill levels. Everyone that works at the shop is an avid enthusiast and player, dedicated to bettering themselves in the art of ukulele as well as helping others. We are all passionate about helping others to grow their comprehension of the ukulele, not just in playing, but also in history and culture as well.
“If everyone played the ukulele, the world would be a better place.”
Will Harris
By: Will Harris We are happy to announce that the fourstrings.com website has been updated to include our new online ordering system. This system lets you check out all of the great products that we have to offer in the store. Yes, this is a comprehensive list! What’s even more exciting is that we are now able to complete custom orders to luthiers online
-‐ Jake Shimabukuro By:
Order Online!
as well. Customer will be able to see each luthiers unique style and choose one that they
wish to work with. They can then choose from a variety of options to create their instrument online.
The Luthier’s Guide to Four Strings
Thinking about Partnering with us? This guide will tell you everything you need to know about our partnerships with luthiers, and our contract system.
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get:
with us is easy as pie, and best of all you get to control all of the things that you hold dear about your b usiness. Leave all of the worrisome busywork to us so you can get back to doing what you love most, making high quality instruments. We’ll walk you through all the details of the contract and let you modify everything to your personal business needs. It’s never felt so easy to do business.
major aspects of your business. Unlike other shops that require
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in our luthier shop to
you to conform to their needs,
display your work and
we conform to yours in order to
talent.
handle all the small stuff. Let us take care of your ordering,
Your own designated space
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Customizable order forms
distribution, and advertising,
tailored to your business
while you continue to put out
needs.
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Luthier’s Sale All custom ukulele orders 25% off! Oct. 27-‐31 When you buy a ukulele through our Luthier’s Shop receive a 25% discount towards your total order!
only at
Four Strings Ukulele Shop 1545 Litchy Rd Grand Rapids, MI
10 a.m. -‐ 9 p.m.
616-‐438-‐8537