Businessplan-guitarNZ

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Guitar NZ

Director: Sam Wheeler

Flat 1/54 a Rimutaka Place,

Titrangi, Auckland,

New Zealand.

Telephone: (09) 817 3993

Cell-phone: (021) 252 3363

Email: [email protected]

Date: 1/9/2006

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MISSION STATEMENT

To build unique and creative New Zealand guitars and offer excellent, friendlyservice and quality workmanship.

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CONTENTS:

1. Background (page 4)

2. Executive Summary (page 4)

3. Business Details (page 4)

4. Marketing (page 4)

5. Financials (page9)

6. Outcomes (page10)

7. The Future/Goals (page11)

8. Personal Details (page11)

9. Conclusions (page14)

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1. BACKGROUNDAfter working and consulting with Andy Rust (Custom Rust Bass) and Neil

Slater (Private Luthier).

2. EXECUTIVE SUMMARY2.1 Type the KEY points contained in your business plan on this page Product: Guitar design and customisationMarket segment: Creative Department heads, Producers, Investors andFunding bodies, Schools, Parents, Publishers, Corporations, Internet Siteproducers, Advertisers and the general public.Location: Home Based workshop (I have a room set aside)Expected sales: $58,000Cost of making those sales: $18

Expected profits on sales: $40,000Borrowing requirements: $6000 needs to be borrowed for capital purchases ofan essential parts and testing equipment.

BUSINESS DETAILS

2.2 Name of the business: Guitar NZ

2.3 Legal status: Sole Trader

2.4 Proprietor/manager: Sam Wheeler

2.5 Business process/type : Guitar modification, design and upgrades.

2.6 Hours of business: 9-5 Weekdays

3. MARKETING

3.1 Product and Service4.1.1 Range Guitars, Guitar parts, Guitar and bass customization.

4.1.2 Guarantees and Warranties Clients will have the satisfaction ofknowing that there are stringent contingency clauses protecting theirproduction in the event that for any reasons we cannot complete theirproduction. Also any merchandise that is faulty or not up to the standardthat they have previously outlined will be amended. However extrachanges or additional alterations not defined by the original brief will becharged for as extra work.

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4.1.3 Credit terms Cash and Cheque, Generally with 50% paid up front andthe final 50% to be paid on completion, unless extra resources arerequired to complete the production. Of which advances up to the finaltotal may be required to allow completion. Otherwise Payment or sub-contractual agreements to be negotiated.

4.1.4 USP (Unique Selling Proposition) Our Products and services will beunique due to Quality of the Product, Indigenous New ZealandVersatility, Product Range, Larger International Market appeal, Localsupport networks, and Experience.

4.1.5 Alternatives Larger more established corporations such as the RockShop and Go West music could complete the projects as contingency.

4.2 Customer Profile Guitar builders, musician cliental both in the local and

international market.

4.3 Location of customers Generally we will communicate with our clients viaInternet but also will embark on advertising on the radio using previouscontacts and contra offers. i.e. we have friends at both BFM and RadioActive in the capacity of Advertising managers and DJs willing to plug fortheir own advertising creation in the form of Flash animations and our veryoriginal Artwork.

4.4 Market Research I have sold custom guitars and basses in the past, andhave had offers on my guitars, even the partially rebuilt ones. Additionally I

have discussed the possibility of working with an interior designer in sellingcomplete custom Guitar and Bass packages to outfit a living area.

4.5 Size of the market 4.6 Market Projections Realistically the percentage we can reach is 20%

according to Paretos 80/20 law i.e. 80% of your work will come from 20%of my clients. By promotion, production, distributation, time to developmarket share.

4.7 Segmentation The basis of our customer targeting is that our productsappeal to a niche market of mid teens to late sixties consumers.

4.8 Price4.8.2 Costing and Pricing considerations On I will be required to follow that

system unless I negotiate for a Lump sum up front. I will charge perhour and by parts included. Approximatley $3000-5000NZD per guitaror bass.

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4.9 CompetitionCompetitors is that New Zealand has nearly all Geographical features in relativelysmall proximation to each other.Lancaster Guitars(Luthier)Custom Rust (Luthier)Bob Scott (Luthier)The Rock Shop Music Works

Guitar NZ has an advantage over its peers in that its main graphics artist and ArtDirector is also the multi-media Director/ Operator and has broad understanding ofwhat technology is able to achieve. Thus its versatile range and smaller overheadswill allow the company to adapt to the evolving graphic environment, learning newtechniques and breaking new ground in the fields that it incorporates. Where a morespecialized company may find itself quickly become obsolete.

4.9.2 SWOT Analysis

Strengths: I am a small company will low overheads, that can quickly change tome market demands.Weak nesss: Smaller company, Limited advertising budget. No currentestablished client baseObjectives: *See Future GoalsThreats: *See Competition

4.9.3 Competitive advantages We are a small business so you can alwaysguarantee personal treatment. This also allows us to make suddenchanges to meet market fluctuations and new market threats. We requirerelatively minimal capital to remain stable.

I have a much stronger artistic ability than any of my currentcompetitors.

4.10 Market threats The major external threats to my business is swamping ofthe marketplace by substandard amateur companies thus making clients waryof legitimate professions. Increased home desktop publishers saturationcausing a rapid drop of rates and quality. Larger corporations moving fasteron potential clients than myself due to their higher-grade equipment.

4.11 Distribution Channels We will get our product to market by shop, home

delivery, mail order, wholesale subscriptions, Phone Orders, e-commerceInternet orders and Wholesale shipping orders.

4.12 Promotion and advertising4.12.2 Advertising Funkomation will advertise via print advertising in Loop

magazine at a reduced rate from contra agreements. Their advertisingmanager is a close personal friend who I have worked with before and is

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guaranteed to help promote Funkomation when he sells ands to largercorporations.

4.12.3 Publicity/public relations

4.12.4 Personal Selling Sales will be undertaken by the owner operator viathe Internet and mail catalogues, and from retail outlets and guitar shops.Auctions and exhibitions.

4.12.5 Sales Promotion/Merchandising For Promotion and merchandisingwill be Business cards, Posters, T-shirts and Cartoon strips

4.12.6 Calendar of promotional activities Jan 2007 Business Cards and Internet advetisingFeb 2007 Promo GuitarMarch 2007 Melbourne campaignApril 2007 BFM AdvertisingMay 2007 Television and Press Release on ALT TV

June 2007 Auction and promo gigJuly 2007 Radio and Print PromotionAugust 2007 exhibition of guitars.Sept 2007 Sydney CampaignOct 2007 Poster Campaign Nov 2007 Xmas advertising campaignDec 2007 Release party and end of year Auction.

4.12.7 Advertising and Promotional Budget (*Re calender of promotionalactivities)

Jan 2007 $200

Feb 2007 $1500March 2007 $350April 2007 ContraMay 2007 ContraJune 2007 $350July 2007 $1000August 2007 $500Sept 2007 $1000Oct 2007 $500 Nov 2007 $450Dec 2007 $3000

5 FINANCIALS5.1 Sales estimates *refer to cashflow5.2 Variable Costs Estimates *refer to cashflow5.3 Fixed Costs Estimates *refer to cashflow (note: fixed costs minimal due to

small overheads and material costs of working from home.

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5.4 Profit Loss Statement *refer to cashflow5.4.2 Notes to Profit and Loss earlier months are lower being a production

period and later months are larger being closer to Xmas sales5.5 Break Even Calculation *refer to cashflow5.6 Cash flow *refer to cashflow

5.6.2 Cash flow Chart-*refer to cashflow

5.7 Forecast balance sheet *refer to Balance sheet.5.7.2 Balance Sheet *refer to Balance sheet.

5.8 Start-Up Costs $5000 toward the followingMARSHALL JCM900 4100 DUAL REVERB HEAD GUITAR AMP

$2699

quantity Guitar Parts list

unit costsubtotal

6 Electric guitar strings, light guage $9.45 $56.70

2 Fender necks 21 frets $199.00 $398.00

2 Fender necks 22 frets $199.00 $398.00

1 Warwick style bass neck $350.00 $350.003 Headnuts $11.00 $33.00

2 complete set of tuning nuts 5 string bas $130.00 $260.00

2 complete set of tuning nuts fender electric guitar $65.00 $130.00

1 complete set of tuning nuts 4 string Bass $65.00 $65.00

6 single coil pick-ups $110.00 $660.00

1 4 string bass bridge $40.00 $40.00

2 Floyde Rose bridges $170.00 $340.00

1 standard fender tremolo bridge $60.00 $60.00

2 5 string bass bridges $70.00 $140.00

3 humbucker pickups $200.00 $600.00

2 warwick style bass pickups $250.00 $500.00

5 3.5 mono phono jacks $6.00 $30.002 3 way switch $13.00 $26.00

1 5 way Switch $23.00 $23.00

1 toggle switch $12.00 $12.00

5 capacitors $25.00 $125.00

5 volume pots $4.50 $22.50

9 tone pots $3.50 $31.50

5 volume knobs $10.00 $50.00

9 tone knobs $10.00 $90.00

Total $4,440.70

5.9 Equipment already owned:

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http://rockshop.co.nz/04/shop/product-full-page.php?code=MRJCM4100http://rockshop.co.nz/04/shop/product-full-page.php?code=MRJCM4100


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Pentium 3 ComputerMicrotek ScanExpress 1200 ED ScannerCanoscan Scanner2 Pentium two computersSony Black Trinitron 21 MonitorPanasonic RX37 VHS-C CamcorderSony Digital 8 Video CameraHP PrinterAlcatel Cell-Phone1996 Toyota Levin

5.10 Capital budgetInitially I will need $6000 to cover the costs5.11 Owners Personal Budget*see Personal Budget 5.11

6 OUTCOMES

6.1 Risks and Rewards

The hardest handicap will be my lack of client base for such a specializedproduct. However as I have a passion for excelling in everything that challengesand motivates me I believe that this learning curve with also be one of thebiggest rewards no matter what may eventuate. Also the self confidence anddiscipline needed in attempting to rise to the occasion will motivate me in mypersonal achievements.

6.2 Insurance

Due to the expensive and specialized equipment full business insurance will beof the utmost importance. To cover theft, fire and equipment faults and to coverdamage while guitars are on exhibit.

6.3 Contingency Plans

I have the ability to think creatively and troubleshoot most difficult situationsunder stress. This is due to working under stress situations and Deadlines in

Animation and Graphics/desk top publishing. These are field where if youintend to survive or complete a job sometimes you need to adapt to the situationor come up with alternatives that reach the same conclusion as the client needs.Having already trained my mother in animation, and found her employmentwith the company I was working with at the time, I feel confident in my abilitiesto train other Luthiers in custom airbrushing techniques.

7 THE FUTURE/GOALS

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7.1 1 Year Goals

Set up a successful guitar building and customization company. To produce andcomplete Successful guitars, Fine instruments, songs and audio recordings onthe Internet. Set up a corporate website for marketing and a private website for

advertising my own T-shirts/merchandising to self promote my productions andto encourage interest in the marketplace in future productions and products.

7.2 3 Year Goals

Be up and running smoothly enough to employ staff and train them inairbrushing technique.

7.3 5 Year Goals

Produce successful high quality full feature films of an international standard

and market. Be able to communicate and compete in an international level withover-seas competitors.

8 PERSONAL DETAILS

8.1 Date of Birth 22/12/1972

8.2 Relationship Status Single

8.3 Education

High-school:Fifth form cert.: Maths, Horticulture, Science, and Computer Studies, English.Sixth form cert.: Art, Physics, Chemistry, English, and Geography.Seventh form: B Bursary; History, English, Painting, Sculpture, Chemistry.University EntranceTertiary Education:

1991 silver Service certificate (90% pass)1991 Diploma in Art (Majoring in Film-making (Initiated Film-making Majoras part of the Sculptural Department))1992 Television and Video Operations Certificate (Grade A Student)1993 Television and Video Production Diploma (Pass with Merit (one of Two

students to pass out of the eighteen students that attempted the course))

8.4 Experience

Work Experience1991 first Sculptural Exhibition at the French Art Gallery with Esme Towns1991 2nd Sculptural Exhibition at Titirangi Community Hall with Judith Towns

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1992 OUTER ASPECT :Installing the Sky Trackers and Video Wall for theNew Zealand Music Awards:Installing the Sky Trackers for a private party at the Green Room (NewtonGulley):Installing the Video Wall for Sunday Grandstand (TVNZ):Installing the Video Wall for OUTER ASPECT Private Party

1992 Cameraman to 10-minute intro for Pan Pacific Travels incentive to AppleComputers1993 Trained Students in Camera Operations and Production for Melons BayPrimary School1994-1996 Toonz Animation (First Employee with no formal AnimationTraining)Subcontracting to Walt Disney Television on such shows as Tex Tinstar, PithPossum, Quack Pack, Timon and Pumba (off-shot of the popular childrensfeature The Lion King), Redux Riding Hood, Third Pig (the only animatedepisode of Tales From the Crypt).In-betweener to Key Clean up and Animation.

1996 Sam designed ,Built and conceptualized the Animation side of Toms Moreor Less Video for Jungle Fungus

1996 trained Beverly Dawn Towns in animation1997 Fruit Loops AD and a Coke AD for Flying Fish Animation in NorthSydney1997 series for the ABC called Petals for Cat flap Animation1998 sculpting for his third Exhibition (a Co-exhibit with Beverly Towns andMarion Towns at Lopdell House in Titirangi).

1999 Cartoonist/illustrator for IN DAH LOOP a entertainment page for LOOP

Magazine. Continued on to do advertising ,Distribution and Desktop Publishingfor LOOP Magazine.

Finally conceiving and Co-Directing the LOOP CD for the September issue tocoincide with their first cover price issue. The CD Featured artists such as TheNew Zealand Youth Choir, Bongmaster, Trinity, Pith Black, Mark de CliveLowe, Teariki, 50hz, DJ Cuffy, Twin Set, King Kapisi, House of Downtownand Salmonella Dub.1999 ADCOM Mac Operator1999 Illustrator. The cover to Outlanders for Ashton Scholastic.2000 Freelance Multi-media Art Director and Illustrator for Comparto Records

Applications Experience:Macromedia: Dream weaver, Flash, Director, SoundEdit16.Desk Top Publishing: Quark Xpress, Freehand, PageMaker, Corel Draw andCorel Photo paint3-D Design: Wavefront Maya, Pixels.2-D Design: AutoCAD R12.Image processing: Photoshop, Paint shop Pro..

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Sample editors: ProTools.Cell-animation: Deluxe paint.Non-linear video editing: Avid, Adobe Premiere, Super Line Test.Internet client software: Netscape, Explorer.Familiar with MS Word, MS Office, and Excel Spreadsheets.

Film and Video:

Video editing experience on VHS, S-VHS, Beta SPII, HIBAND, and non-linearsystems such as the Avid, Adobe Premiere and Super Line Test.Skilled in Camera Operations for Video Hi8,VHS, S-VHS, BETACAM andHIBAND and Super 8mm Film.Lighting, Script Writing, Budgeting, Storyboarding, and Make-up, Copy-writelaw, Production, Direction and Sound Engineering.

Art and Design Skills:

Photography and Development. Printmaking including Screen-printing,Mezzotint, Acid Etching, Woodcut, Linocut and Photo Emulsive. Sculpture inall mediums. Jewelry making, Welding. Painting in all mediums. Graphic

Design, Mould-making, Mask Making and Prosthetics.

8.5 Hobbies and Interests

Acting, prosthetic make-up and mask making, puppeteering and puppet making,song-writing and performance (singing and guitar), reading and literature,psychology and philosophy, astronomy, massage, reflexology, homeopathy,theatre, dance, cooking, electronics, computers, robotics, and all aspects ofcreative art in all forms.

9 CONCLUSIONS9.1

Due to the type of specialized luxury product that GuitarNZ incorporates thefinancial remuneration is enormous while the customer base is very small. Withmy previous skills training and experience I believe I have competent abilitiesto be able to be selfemployed in this industry. There are few individuals that canoffer such a scope of different skills in such specialized markets as guitarbuilding.There has been a minimal amount of self-promotion and advertising inthe industry so far and still clients are beginning to approach me for theircustom guitar projects. Clients private faith in my abilities to produce a qualityservice and products has made them continue to offer opportunities and projectsto me over my competitors, strengthening my track record and addingachievement after achievement to my employment history. I think that if Icontinue to produce high standard work I will continue to carve a comfortablecareer that is both personally forfulling and meets the physical requirements ofmy back disability (Fibrio Myalghia).

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