I.) INTRODUCTION
Recording studio is a facility for sound recording. Ideally, the space is specially de signed to control audio reflections. Different types of studios records bands and artists, voiceovers and music music for televi televisio sion n shows, shows, movies movies,, cartoo cartoons, ns, and commer commercia cials, ls, and/or and/or even even record record a full full orchestra. This is a study that has been conducted in order to measure the recording industry’s capability to survive under a different market conditions as well as to meet the people’s demand of such enterprise. It also seeks the resources needed with its corresponding amounts in order for the proper allocation of the resources. The tudio was named Rockoholic because many people are addicted in music. The Rockoholic Rockoholic recording studio will be located located at !atina Town "uare fronting #teneo #teneo de Davao $niversity % &rade chool building. The studio is located right wing of the !atina Town "uare vicinity. 'e gathered gathered a lot of data given by the different different establishme establishments. nts. 'e interview interview some persons who have a lot of knowledge about music and by observing and studying the information’s given. 'e also make use of our little knowledge about music because most of us are member in the band and also tried recording. (ur data gathering started on the month of )anuary, year *++ and what we did was we went to different kinds of recording studio, practice studio and music stores here in Davao -ity. 'e ended on the month of )anuary, year *++. 'e make use of our critical minds and careful analysis in order the study will be sufficient and ade"uate.
1
The names of the ntrepreneurs with their cell p hone numbers are the following0
)oseph &ubantes
+121**3324
)ohnwyn !aruhom
+122+4+34
)oshua 5aguican
+1*+6224273
8ashmeruddin .#bdul
+1*422*67
9ibrado chevarria III
+1231261*
The -apital of each 5artner0 The The -om -ompany pany’’s tota totall capi capita tall is (ne (ne !ill !illio ion, n, :ive :ive ;und ;undre red d Thou Thousa sand nd 5eso 5esoss <5;52,6++,+++ <5;52,6++,+++.++=. .++=. ach partner partner will contribute contribute an amount amount of Three ;undred ;undred Thousand Thousand 5esos <5;54++,+++.++=.
2
The names of the ntrepreneurs with their cell p hone numbers are the following0
)oseph &ubantes
+121**3324
)ohnwyn !aruhom
+122+4+34
)oshua 5aguican
+1*+6224273
8ashmeruddin .#bdul
+1*422*67
9ibrado chevarria III
+1231261*
The -apital of each 5artner0 The The -om -ompany pany’’s tota totall capi capita tall is (ne (ne !ill !illio ion, n, :ive :ive ;und ;undre red d Thou Thousa sand nd 5eso 5esoss <5;52,6++,+++ <5;52,6++,+++.++=. .++=. ach partner partner will contribute contribute an amount amount of Three ;undred ;undred Thousand Thousand 5esos <5;54++,+++.++=.
2
II.) EXECUTIVE SUMMARY
The >Rocko >Rockohol holic’ ic’ record recording ing studio studio is a type type of busine business ss that that offers offers record recording ing and practi practice ce services to all artists and music enthusiasts here in Davao -ity. The following are the charges that we charge to our o ur customers0 for Recording, which includes Demo
3
8ashmeruddin #bdul, a graduate of #DD$, *+ years of age, member of a music band,
Drummer. )oseph &ubantes, a graduate of #DD$, *+ years of age, member of a music band,
?ocalist. )oshua 5aguican, a graduate of #DD$, *+ years of age, member of a music band, @assist
and Rhythm. )ohnwyn !aruhom, a graduate of #DD$, *+ years of age, ound specialist and 5ianist.
9ibrado chevarria III, a graduate of #DD$, *+ years of age, member of a music band, 9ead &uitarist and ?ocalist.
III.) MARKETING PLAN
A. Situational Analysis
1. Industry Analysis a. Industry @ackground and (verview
(ur company, which is the Rockoholic, belongs to the recording industry. The said industry is not that big because it is Bust 2* of Davao -ity’s total industry, and been recogniEe for almost 2+ years in Davao. Rockoholic is a full service recording studio that provides a highAclass / highA "uality sound using the new "uipments and offers the following0 •
5rofessionallyA e"uipped recording studio
•
ound "uality
4
•
Digital !astering
•
#rranging / composing
•
#udio conversion to !5&, !54, '#?, etc.
The total industry sales for the past five years were, *++4 has 53,2+,36.++. (n *++7, it increased to 5,16*,472.++ and on *++6 decreased to 56,432,6*.++. @ut for *++7 and *++6 was 5,33,742.++ and 51,*64,**7.++ respectively.
b. &rowth Rate
The anticipated growth rate in this industry will be positive and eCpecting that the Return of Investment will be *6 of this coming year. There were only 2 new firm who entered this industry in the last three years. The new service that the said firm introduced in the industry were high % "uality and well % maintained e"uipments. (ur competitors’ sales were changing depending on the different factors, as what was shown on the graph below. Figure 3.1
Sound Quality
Service
Polyfusion Polyfusion Mix a Tune Rockoholic
Mix a Tune
5
Rockoholic
Equipments Polyfusion Mix a Tune Rockoholic
*.= -(!5TIT(R’ #F#9GI a. HITIF& -(!5TIT(R The company’s key competitors are 5olyfusion Recording tudio and !iCAaATune Recording tudio. Their services have been operating for "uiet a long time. 5olyfusion had played a large role of providing recording services here in Davao -ity. It started in the early 1+’s and still continued its operation nowadays. The studio was part of the period wherein local artists were making its name in the national music scenes. It also sponsored a lot of significant events in the city. (n the other hand, !iCAaATune studio is younger than 5olyfusion recording studio. !iCAaATune studio began its operations in the year *++7. It is slowly making its way to be the best recording studio in !indanao particularly in Davao. @oth of these studios have been trying their best in their operations. !ost of the people in the
6
city have been ac"uainted to their services. They were known as the sound technicians of music in the region. Their strategies in attracting customers to avail their services are simply by way of advertising through local radio stations and by sponsors. In this way, they make the people aware to their services. 5otential customers in our target market avail there services as of now because there is no other good services that provides such services that they need and if they want to avail a better service, they will have spend more money because high "uality recording studio are situated somewhere in !anila which would lead them to cost more. #fter giving out "uestionnaires, we have identified some of the maBor concerns of the people to about the recording studio services. Through these, we can distinguish our services from theirs. Cisting recording studios have some weaknesses as shown in the illustration below. 'e can use this information in order to cover up their weaknesses in our proposed recording studio. -overing up their weaknesses can make our recording studio a high class studio and these involve a high "uality sound, clean and well maintained, and spacious studio with a friendly staff. 'e can distinguish our services from theirs in this way and we can attract more customers.
Figure 3.2 (The following illustration shows Strengths, Weaknesses, Opportunities and Threats of Polyfusion and Mi!a!Tune "e#ording Studio.$
POLYUSION trengths0 &ood "uality • of sound fficient in • recording $sed hiAtech • e"uipments in recording
MIX!A!TUNE (pportunities0 trength0 Increasing Few • • number of e"uipments aspiring bands :riendly staff • or local artists ;ighly • Fational • maintained music -lean facility • competition that re"uires demo from
7
(pportunities0 Increasing • number of aspiring bands or local artists Fational • music competition that re"uires
the local artists 'eaknesses0 Threats0 'eaknesses0 9ack of Increasing mall space • • • maintenance number of for recording to their music studios -rowded • e"uipments who have the potential to (ld and dirty • offer a facility recording services
Threats0 Increasing • number of music studios who have the potential to offer a recording services
(The #hart illustrates how %ig their &arket is.$
(' per#ent of the total lo#al artists and %ands in the region ha)e #hosen Mi!a!Tune re#ording Studio as the &ost e#ellent studio.$
b. 5(TFTI#9 -(!5TIT(R
';(0 #side from the eCisting recording studios locally, we also assume that there’s a lot more competitors in the future. Those competitors are capable of building a recording studio that is in harmony of making the public satisfied with what the Rockoholic aims at. The 5otential -ompetitors would be the department stores that are selling musical e"uipments. This would include malls and appliances stores. ';F0 -ompetitors will surely appear if our business, The Rockoholic, would be successful and be inAdemand locally. @ased on our study, this business will shine to the public after several years or maybe more or less 4 years after the business is put up.
8
';G0 5ractically speaking, competitors will take place simply because they want to take advantage also of the financial capability or the ability to earn high on this type of business. @ased on our survey, at present, the recording studio locally does not satisfy the customers. 'e believe that the Rockoholic will absolutely provide the necessary or all the demands of the people where in they could not find it in the present eCisting recording studio locally. That’s the nature of competence, to imitate once business, that click the market. #ll of us wants to earn more than the others, thus potential competitors arise because of money. -ompetitors will try all their best to attract the people who are in demand of a good recording studio.
@.= T#R&T !#R8T
The target market of the Rockoholic Recording tudio, based on the survey results, shows that males and females who are music enthusiast are the target market of the studio. !ost of these males and females are likely in a band, play/write music as a hobby, and be of all ages. The Rockoholic tudio differs from the other since our recording studio has tied ups with different companies, organiEation and sectors in order for us to offer them our services instantly if they’ll need our services. The Target market of the recording studio is also focused on people who are seeking perfection. #lso, our target market includes people who are locally aware on the local music industry.
-.= !#R8TIF& (@)-TI? The Rockoholic Recording tudio wishes to capture *6 of Davao -ity’s of its target market by neCt year. It also wishes to embark on a new type of advertisement which is to sponsor contests on singing competitions. Through this, the Rockoholic’s market share in Davao -ity would increase by *+.
D.= #D?RTIIF& and 5R(!(TI(F
9
Figure 3.3 ADVERTISING EXPENSE
D-RI5TI(F
$#FTITG
$FIT
#!($FT
@anner
6
5ieces
*+.++
2,46+.++
5oster
2+
5ieces
3++.++
3,+++.++
9eaflets
2++
5ieces
*.3+
*3+.++
Radio
2
Radio tation
,+++
,+++
TOTAL
T(T#9 #!T.
"#$%"&.&& (The ta%le shows the following #o&position of the *o&pany+s ad)ertising epense and the proe#ted a&ount on the ad)ertising epense$
IV.) ORGANI'ATIONAL PLAN
A.) o( o* O+n,(s-i
The business Rockaholic Recording tudio is a partnership form of business. In a partnership form of business, profits and losses are distributed e"ually among each partner. The advantage of a partnership type of business is that it is easy and ineCpensive to form.
10
The Rockaholic Recording tudio is composed of -apitalist partners 9ibrado chevarria
III,
)oseph
&ubantes,
)oshua
5aguican,
)ohnwyn
!aruhom,
and
8ashmerrudin #bdul. 5rofits and losses would be divided e"ually among each five partners. The !anaging partner would be 9ibrado chevarria III. ;e would receive an additional alary as manager.
/.) R,0ist(ation P(o1,ss
#.= ecurities and Cchange -ommission 2. ?erify the proposed business in the verification unit of -. *. ubmit the #rticles of 5artnership, ?erification lip for the @usiness Fame, 'ritten $ndertaking to change name if re"uired, TaC identification number of each partner and/or that of the partnership, Registration data sheet for partnership duly accomplished in siC copies, and other documents that may be re"uired. 4. 5ay the registration and filing fees. 7. ;ave the documents forwarded to the - -ommissioner for signature. @.= Department of Trade Industry
11
2. #pplicant must secure two copies of registration form and pay 5hp 6++ for the registration processing fee. *. #ccomplish DTI :orm no. 23@. 4. If the partnership is fully owned by an alien or the capital of which is more than 7+ owned by aliens, the - -ertification must specify that it is in accordance with the foreign investment #ct of 2112. 7. In case there is an increase of capital, submit certificate issued by -. 5artnership using only its registered corporate partnership or cooperative names may no longer register under the @usiness Fame 9aw. #n applicant who maintains a business with branches must register the main business and every branch thereof.
C.) /usin,ss /u(,au
The partners must apply for a @usiness 5ermit from the business bureau. This is a permit to operate a business for the partners to comply with the government re"uirement.
•
5resent your DTI -ertificate of @usiness Fame the fill up the application form.
•
&et the printed application and process the application by letting sign the authoriEe government agency reflected in the application, like 2. Real 5roperty taCAinAcharge *. FotariEation of lawyer worth 56+ 4. @usiness bureau assessment
12
7. -ity ngineers (ffice 6. @ureau of :ire 3. If the business pertains to :ood and Drug, let the application sign by the -ity ;ealth (ffice. •
ecure a partnership residence certificate <-edula= worth 56++.++ from the barangay.
•
&et a barangay clearance where your business is located.
•
9et the manager of the partner sign the printed application.
•
5ay to cashier the corresponding amount as assessed by the assessment division for the first "uarter of operation.
•
#ttach the authoriEation letter with corresponding photocopy of ID of the manager authoriEing with a specimen signature below the letter.
•
ubmit the application to the @usiness @ureau for a 9(&( or for a @usiness permit.
•
There would be a registration fee more or less than 56,+++.++
D.) /u(,au o* Int,(nal R,2,nu,
2. :ill up the application for Registration of @usiness *. ubmit the application with attach authoriEation letter of the one who process and the inAcharge of the documentation 4. 'ait for the issuance of -ertification of Registration with corresponding TIF Fumber of the 5artners 7. #pply also TIF Fumber of your employees 6. 9et your @ooks of #ccount be Registrar 3. The printer will be the one who take charge of your invoice registration with @IR. The annual registration fee of 56++.++
13
E.) So1ial S,1u(ity Syst,
2. :ill up the application for partners’ Fumber *. #ttach the @usiness 5ermit and the authoriEation letter 4. ubmit to the InAcharge 7. 'ait for your number .) P-iliin, 3,alt- Insu(an1,
2. :ill up application for partners’ number *. #ttach the @usiness 5ermit and the authoriEation letter 4. ubmit to the InAcharge 7. 'ait for the 5hil. ;ealth Fumber
i. O(0ani4ational C-a(t Figure 3.4
(wner
!anager
enior Technician
-ashier 14
!aintenance upervisor
#ssistant Technician
!aintenance 5ersonnel
(The #hart shows the stru#ture of the *o&pany - Top Manage&ent (Owner and Manager$, Middle (ookkeeper, *ashier, Senior Te#hni#ian and Maintenan#e Super)isor$, and /ower Manage&ent
(Assistant Te#hni#ian and Maintenan#e Personnel.$
2.= (wner’s "uity The form of ownership will be a partnership. The business will be composed of five partners namely 9ibrado chevarria III, 8ashmeruddin #bdul, )oseph &ubantes )ohnwyn !aruhom, and )oshua 5aguican. The initial capital of the partnership will be 5;52,6++,+++.++ and each partner will contribute 54++,+++.++ each. The profits and losses would be e"ually distributed among the partners. !r. 9ibrado chevarria III would serve as the !anaging 5artner. ;e would be in charge mainly on managing the business and will receive additional alary for being a manager. !r. )oseph &ubantes would be the enior Technician, !r. )oshua D. 5aguican as !aintenance upervisor and !aintenance personnel, !r. )ohnwyn !aruhom as the cashier, and !r. 8ashmeruddin #bdul as the #ssistant Technician.
*.= 5ersonnel 2.= !anager
15
-
InAcharge of the whole operation.
-
The assigned manager shall be responsible in assigning tasks.
-
The manager is re"uired to have good communication skills.
*.= enior Technician -
This re"uires a degree on -(!5$TR and electrical engineering.
-
This employee is responsible for recording tracks.
-
!ust have background of good listening to ound 'aves technically.
4.= !aintenance upervisor -
;elp customers for setting up their instruments.
-
!aintain the cleanliness of the studio.
-
!ust also have the knowledge on musical instruments.
7.= -ashier -
The person responsible for computing the amount due for the service charge of the consumer.
-
They collect payment for the services.
6.= #ssistant Technician -
5lays a critical role in assisting the enior Technician
-
omeone with eCperience and training in the production and manipulation of sound through mechanical
16
3.= !aintenance 5ersonnel -
Feeded to understand how to troubleshoot and maintain the condition of the e"uipments.
-
work to keep building systems operating safely and efficiently
-
!aintenance personnel also respond to various re"uests for repairs to the property of the studio and are sometimes involved in special proBects.
5o6 s,1i*i1ation
7uali*i1ations -
hould be a graduate in any business course
-
#t least * years of eCperience as a manger
-
5leasing personality
-
8nowledgeable in the music industry
-
!usic lover
-
*+ years of age
-
&raduate of any business course
!anager
enior Technician
pecialiEed in technical matters
!aintenance
-
2 year eCperience as a technician
-
Cperienced working on a music studio
-
;igh school graduate
-
8nowledgeable
upervisor instruments.
17
in
working
with
musical
-
-ashier
!ust have at least 2 year of eCperience as a cashier
#ssistant Technician
-
.pleasing personality
-
&ood in communication skills
-
#t least 2 year of eCperience for this Bob
-
5leasing personality
-
hould be a graduate of a vocational course
!aintenance
related to the Bob itself
personnel
-
!ust have 4 years of eCperience in recording
-
!ust respond well with the enior Technician’s
Figure 3.5 Job Specification and Qualifications Figure 3.6 Salary and Benefit Matri Sala(y an8 /,n,*it Mat(i9
)ob
&ross pay
5hil
5agAI@I&
;ealth
'ithhol
Fet 5ay
ding TaC
!anager
2++++.++
444.4+
2*6.++
*++.++
2*+.++
244.+
enior Technician
6++.++
*4.4+
2++.++
2+.++
2++.++
314.+
!aintenance
+++.++
*33.+
2++.++
23+.++
6.++
3326.4+
-ashier
3+++.++
*++.++
6.++
2*+.++
74.++
62**.++
#ssistant Technician
6,6++.++
24.++
6.++
22+.++
64+.++
73+*.++
upervisor
18
!aintenance 5ersonnel
6,+++.++
233.++
+.++
2+6.++
62+.++
7271.++
Total
:;$&&&.&&
"$:;<.;
#:<.&&
=%#.&&
:$#>?.&&
;#$#%&.?&
(The ta%le shows the following #ost of the #o&pany+s salary and %enefits$
D.) Facilities
Coany Sa1, R,@ui(,,nts
The Rockoholic recording studio will be located at !atina Town "uare fronting #teneo de Davao $niversity % &rade chool building. The studio is located right wing of the !atina Town "uare vicinity. The siEe of the place is + s". meters with a rental rate of 5hp. 416.6+/ s". meter. The contract for renting the place would be 5hp. 1+,+++.++ for five <6= months. #nd the total monthly rate would be 5hp. *,36/ month. The payment may be made in cash or through check. The studio is composed of 6 rooms and a reception area. $pon entering the studio, you will see the reception area where you find the cashier’s desk. ituated behind the cashier’s desk is the manager’s office. The neCt room is the storage room and followed by the editing bay. The
19
rooms parallel to the manager’s office is the practice room. The door positioned at the end of the hallway is the location of the recording room.
20
21
E@ui,nt T,1-nolo0i,s
The e"uipments that the company will be using are firstAclass because it came from the different wellAknown stores in the 5hilippines which are known in terms for their highAend and technologically advanced e"uipments and gadgets. The brands of our e"uipments for recording studio are the following A !A#udio 5roBect!iC I/( -ontrol urface, 9aney 9-26R lectric &uitar ?alve #mplifiers -ombo, "uier #ffinity tratocaster lectric &uitars R' @lack, "uier #ffinity 5A@ass &uitar R' @rown unburst, -ollins D-!6 Dynamic Instrument !icrophones, 8org microH 8eyboard ynthesiEer 'hite, 5earl ?ision ?9H 6A5iece tandard Drum et, 2 !etre !ono )ack to !ono )ack -ables, :enderJ @assman 2++ 2++Awatt @ass -ombo, #8& 822 -losed @ack tudio ;eadphones, vent TR Tuned Reference #ctive tudio peaker <5air=, dirol (5AR+1- !icrophone tands RA+1, #rturia !oog !odular ? oftware ynthesiEer, -ollins --2*+ -lassical #coustic &uitar and a -omputer.
22
:or our practice studio, these are the following e"uipments A @ehringer &!2+ ?ATone !odelling &uitar -ombo #mplifiers, Gamaha 5acifica +2* R! lectric &uitars Red !etallic, IbaneE R1++ T8: lectric @ass &uitar Trans @lack :lat, -ollins D-!6 Dynamic Instrument !icrophones, 8org microH 8eyboard ynthesiEer 'hite, 5earl ?ision ?9H 6A5iece tandard Drum et, :enderJ @assman 2++ 2++Awatt @ass -ombo #mplifier, dirol (5AR+1- !icrophone tands RA+1, and 2 !etre !ono )ack to !ono )ack -ables.
"uipment
uantity
#mount
Total
$seful
Depreciation
Fet @ook
9ife
?alue
?alue
!A#udio 5roBect!iC I/( -ontrol urface
2
74,33.++
74,33.++
2+
7,433.+
7,433.+
9aney 9-26R lectric &uitar ?alve #mplifier -ombo
4
23,2++.++
7,4++.++
26
2,+4.44
4,**+.++
"uier #ffinity tratocaster lectric &uitar R' @lack
*
,6.++
2,27.++
6
2,2.7+
4,67*.+
"uier #ffinity 5A@ass &uitar R' @rown unburst
2
2+,27*.++
2+,27*.++
6
*,+*.7+
*,+*.7+
-ollins D-!6 Dynamic Instrument !icrophone
7
*,726.++
1,33+.++
6
74.++
2,14*.++
23
8org mi croH ynthesiEer 'hite
8e yboard
2
*3,14.++
*3,14.++
2+
*,31.4+
*,31.4+
6A5iece
2
*,+3.++
*,+3.++
2+
*,+.3+
*,+.3+
2 !etre !ono )ack to !ono )ack -able
3
*76.++
2,7+.++
6
71.++
*17.++
:enderJ @assman 2++ 2++Awatt @ass -ombo #mplifier
2
26,24.++
26,24.++
26
2,++1.*+
2,++1.*+
#8& 822 -losed @ack tudio ;eadphones
7
7,4+.++
21,4*+.++
6
133.++
4,37.++
vent TR Tuned Reference #ctive tudio peaker <5air=
2
*6,*++.++
*6,*++.++
2+
*,6*+.++
*,6*+.++
dirol (5AR+1tand RA+1
7
2,*++.++
7,++.++
2+
2*+.++
7+.++
?
2
26,+++.++
26,+++.++
6
4,+++.++
4,+++.++
-ollins --2*+ -lassical #coustic &uitar
2
3,7*+.++
3,7*+.++
6
2,*7.++
2,*7.++
-omputer
2
46,+++.++
46,+++.++
6
,+++.++
,+++.++
;"$&?#.>;
;>$>:%.&&
5earl ?ision ?9H tandard Drum et
!icrophone
#rturia !oog !odular oftware ynthesiEer
TOTAL
;"
<;=$<%;.&&
;&#$==&.&&
Table 2.2 "uipment for the Recording tudio
24
"uipment
uantity
#mount
Total
$seful
Depreciation
Fet @ook
9ife
?alue
?alue
@ehringer &!2+ ?ATone !odelling &uitar -ombo #mplifier
4
23,2++.++
7,4++.++
2+
2,32+.++
Gamaha 5acifica +2* R! lectric &uitar Red !etallic
*
,+76.++
23,+1+.++
6
2,3+1.++
4,*2.++
IbaneE R1++ T8: lectric @ass &uitar Trans @lack :lat
2
2+,2++.++
2+,2++.++
6
*,+*+.++
*,+*+.++
-ollins D-!6 Dynamic Instrument !icrophone
*
*,726.++
7,4+.++
6
74.++
133.++
8org microH 8eyboard ynthesiEer 'hite
2
*3,14.++
*3,14.++
2+
5earl ?ision ?9H 6A5iece tandard Drum et
2
*,+3.++
*,+3.++
2+
*,+.3+
*,+.3+
:enderJ @assman 2++ 2++A watt @ass -ombo #mplifier
2
26,24.++
26,24.++
26
2,++1.*+
2,++1.*+
dirol (5AR+1!icrophone tand RA+1
*
2,*++.++
2,*++.++
2+
2*+.++
*7+.++
2 !etre !ono )ack to !ono )ack -able
7
*76.++
1+.++
6
71.++
213.++
TOTAL
"?
"&?$<><.&&
"#&$%=?.&&
*,31.4+
"<$;&#."&
Table 2.* "uipment for 5ractice tudio
#dditional "uipments0 &uitar trings @ass trings
2+ sets
5;526+.++/set
5;52,6++.++
6 sets
5;566+.++/set
5;5*,6+.++
*
5;5*76.++
5;5 71+.++
!ono )ack -able <Ctra= @ehringer &!2+
25
7,4+.++
*,31.4+
"?$==:."&
&uitar #mpliifier <Ctra=
*
5;523,2++.++
Total
5;543,17+.++
T(T#9 $I5!FT -(T
P3P:>;$#&?
V.) PRODUCTION PLAN
Custoe !
P(o1,ss lo+
"elect 26 Rese!#atio P!actice
5;54*,*++.++
Reco!%in&
Rental
(nst!uent set u) fo! (n-ui!e P!e)a!ation of inst!uent
P!actice
Payent
(ns)ection an% kee)in& the inst!uent
P!e)a!ation of inst!uents
Reco!%
Mixin& * +%itin&
,o.n )ayent
P!e)a!ation of inst!uents
,eli#e! of inst!uents
T!ansfe! to C, "et u) inst!uent Payent
5rocess :low
Payent
$Reco!%in& "tu%io'
o( 1usto,(s +-o +ant to (a1ti1, in ou( stu8io
The customer must go to the cashier first for reservation. #fter having the reservation, the technician would prepare the necessary e"uipments and instruments to be used for their practice session. In this stage, instruments are tuned well and are set up to produce the best sound
27
possible. #fter having the necessary preparations, the customers are then allowed to perform. During their performance, the technician is prepared for whatever problems that will occur. #fter the customers are finished with their practice session, they will pay to the cashier while the maintenance supervisor and his personnel inspect the condition of the e"uipments and instruments recently used. o( 1usto,(s +-o +ant to (,1o(8 in ou( stu8io
The customer must go to the cashier first to in"uire. This will give time for the technician to prepare the necessary instruments for recording. This would include preparation of the computer and miCer. FeCt, the instruments would be prepared after the preparation of the computer and miCer. #fter having the necessary preparations the customer then would start the recording session. #fter the customer is done, miCing and editing would follow. This process would involve the technician and customer himself. diting and !iCing is aimed on giving the customer on what type of "uality sound he prefers. #fter the customer is satisfied, the miCed and edited piece would then be transferred to a compact disc <-D=. #fter transferring to the compact disc, the customer then would pay to the cashier.
o( 1usto,(s +-o +ant to (,nt inst(u,nts in ou( stu8io
The customer must go the cashier first for reservation. The customer then would pay the necessary down payment for the rent. #fter securing the down payment, the technician would then prepare the necessary e"uipment and instruments to be rented. The assistant technician would then supervise the delivery of the instruments rented. #fter the delivery, the assistant technician will help in setting up the instruments. #fter all these, the customer would pay the
28
remaining balance when returning the rented instruments. The returned instruments and e"uipments will be checked by the maintenance supervisor and his personnel.
V.) INANCIAL PLAN AssutionsB
The :inancial tatements to be presented in the following pages are based on assumptions. 2. The sales generated are based on the customer fre"uency of availing the services rendered by the Rockoholic Recording tudio. In the first year of operation, it is assumed
29
that there would be *,2++ customers who will avail our services. 2,4++ of these customers came from recording service while the remaining 2+++ customers are from practice service. In the second year of operation, there 4,2++ customers. 2,1++ customers are from recording while 2,*++ customers are from practice. In the third year, there would be 4,1++ customers. *,6++ customers are from recording while the remaining 2,7++ customers are from practice. *. Initial working capital would be 5 2++,+++.++. 4. The eCpenses of the Rockoholic Recording tudio are assumed to be fiCed and variable. :iCed eCpenses are composed of alaries and 'ages, Depreciation <traightAline method=, Telephone, lectricity, 'ater, !aintenance, (ffice upplies, #dvertising, Rent, premiums, 5hilhealth premiums, and 5#&AI@I& premiums. ?ariable -osts include installation costs and organiEation cost. 7. traightAline method would be used in computing for the depreciation of the e"uipment and furniture. 6. #dvertising eCpense in the *nd year and 4rd year would only be composed of leaflets and Radio. 3. There will be no salaries for the first year to cover up for the eCpenses. A.) P(o,1t Cost
The Rockoholic Recording tudio incurred a total proBect cost of 511+,4+.*+. The total proBect cost is composed of the (rganiEational cost, 5urchase of e"uipments, :urniture and :iCtures, Rent for three months, Initial electricity , water and telephone cost, Initial working
30
-apital, and Initial #dvertising cost. The computation for the total proBect cost is shown as follows0 Definition O(0ani4ational Cost Pu(1-as, o* E@ui,ntB 5ractice tudio
ubA#mounts
26+,3.++ 4+6,+.++ 43,17+.++
L,as,-ol8 I(o2,,nts
714,6+.++
232,64*.++ 63,+++.++ 1,+++.++ 4,+++.++ 1,3++.++ 7,3+.++
*3,*+.++ 2,+++.++ 2++,+++.++
2,46+.++ *3+.++ 3,+++.++ ,+++.++
lectricity
44,*3.*+
Telephone
4,+++.++
'ater
Initial R,nt Pay,nt
#mounts 27,2*+.++
26,32+.++ =%=$&:>.&&
76+.++
43,43.*+
4,616.++
5>>&$;=&.<&
TOTAL PRO5ECT COST Ro1o-oli1 R,1o(8in0 Stu8io INCOME STATEMENT As o* D,1,6,( ;"$ <&&?$ <&&=$ <&&>
2007
ervice Revenue &ross Income O,(atin0 E9,ns,sB alaries K 'ages
2008
*+,+++.++ *+,+++.++ +
2,266,+++.++ 2,266,+++.++ 7*3,*.7+
31
2009
2,6*6,+++.++ 2,6*6,+++.++ 7*3,*.7+
'ater Cpense 2,++.++ 2,++.++ lectricity Cpense 244,277.+ 244,277.+ Telephone Cpense 2*,+++.++ 2*,+++.++ #dvertising Cpense 2,4*+.++ 11,2*+.++ !aintenance Cpense 7,6++.++ 7,6++.++ Depreciation Cpense ,43+.4 ,43+.4 Rent Cpense 447,4+.++ 447,4+.++ 5remiums 2,2.3+ 2,2.3+ 5hil ;ealth 5remiums 3,6+7.++ 3,6+7.++ Installation -ost 2,+++.++ (ffice upplies Cpense **,3*+.++ 24,+4*.++ Total (perating Cpense 2,246,6.2 807,816.78 Income before taC 2*,24.** 21,*7*.* L,ssB Income taCes <46= 7,*37.24 3,47.11 N,t In1o,loss ?$>">.&>; "<$#&?.=; $"ee "che%ule of +x)enses an% Re#enue in the /))en%ix section'
32
2,++.++ 244,277.+ 2*,+++.++ 11,2*+.++ 7,6++.++ ,43+.4 447,4+.++ 2,2.3+ 3,6+7.++
24,+4*.++ 2,246,6.2 41,*7*.* 243,*47.11 <#;$&&?.=;
Ro1o-oli1 R,1o(8in0 Stu8io /alan1, S-,,t As o* t-, y,a( ,n8,8 D,1,6,( ;"$ <&&?$ <&&=$ <&&> 2007
Ass,ts Cu((,nt Ass,tsB -ash Total Cu((,nt Ass,ts Non!1u((,nt Ass,tsB "uipment <#ppendiC Table 2.2 % 2.*= :urniture’s and :iCtures <#ppendiC Table 2.6= 9easeholds Improvements <#ppendiC Table 2.4= (ffice "uipment <#ppendiC Table 2.7= &ross 5roperty, 5lant and "uipment 9ess0 #ccumulated Depreciation <#ppendiC Table 2.2, 2.* A2.6= #ccumulated Depreciation % :urniture and :iCtures #ccumulated Depreciation % (ffice "uipment #ccumulated Depreciation % tudio "uipment #ccumulated Depreciation % 9easehold Improvements Total #ccumulated Depreciation Total FonA-urrent #ssets
>";$>#>.%?
2009
"$&";$= >";$>#>.%?
"$;#:$">%.&> "$&";$=
"$;#:$">%.&>
714,6+.++ *3,*+.++ 232,64*.+ 63,+++.++ 4,421.+
714,6+.++ *3,*+.++ 232,64*.+ 63,+++.++ 4,421.+
714,6+.++ *3,*+.++ 232,64*.+ 63,+++.++ 4,421.+
*,3*.++ 22,*++.++ 6,4+.2+ 23,264.* ,22.4
6,*63.++ **,7++.++ 226,33+.*+ 4*,4+3.63 26,3**.3
,7.++ 44,3++.++ 24,71+.4+ 7,761.7 *34,747.27
Total Ass,ts Lia6iliti,s Cu((,nt Lia6iliti,sB Total Lia6iliti,s E@uity 5artner’s "uity
2008
2,6*6,67.11
33
%">$#&=.:<
#%"$%>?.&:
:?;$==#.%%
"$#;;$:%=.&>
"$#?#$#<:.>;
"$=<=$&=".?#
&.&&
&.&&
&.&&
2,634,+2.2+
2,66,+4.1*
/.)P(o*it an8 Loss F; Y,a( o(,1ast)
The Rockholic Recording studio has a net income of
5,121.+14 on its first year,
52*,6+.4 income on its second year, and 5 *64,++.4 income on its third year. This shows that income increases by each year. The company has recovered from the first year of operations to the second year of operation. The sales of the company increased by 13. from the first year of operations to the third year of operations
C.)P(o,1t,8 Cas- lo+
/.)P(o*it an8 Loss F; Y,a( o(,1ast)
The Rockholic Recording studio has a net income of
5,121.+14 on its first year,
52*,6+.4 income on its second year, and 5 *64,++.4 income on its third year. This shows that income increases by each year. The company has recovered from the first year of operations to the second year of operation. The sales of the company increased by 13. from the first year of operations to the third year of operations
C.)P(o,1t,8 Cas- lo+
The table below shows the proBected cash flow of the Rockoholic Recording tudio. The desired cash balance is 5 2++,+++. @ut base on the proBected cash flow, there is no need for the Recording tudio to borrow cash to achieve the desired balance since it already has eCcess cash in each every year. It is also shown that the cash of the recording studio increases each year. Gear 2 @eginning -ash @alance
Gear *
Gear 4
2,6++,+++.++
124,161,3
2,+24,*.1
*+,+++.++
2,266,+++.++
2,6*6,+++.++
<$;<&$&&&.&&
<$&%=$>#>.%?
<$#;=$=
2,++.++
2,++.++
2,++.++
Telephone Cpense
2*,+++.++
2*,+++.++
2*,+++.++
lectricity Cpense
244,277.+
244,277.+
244,277.+
#dd0 -ash Receipts
Total -ash #vailable 9ess0 -ash Disbursements 'ater Cpense
35
Installation -ost
2,+++.++
!aintenance Cpense
7,6++.++
7,6++.++
7,6++.++
447,4+.++
447,4+.++
447,4+.++
(ffice upplies
**,3*+.++
24,+4*.++
24,+4*.++
2,2.3+
2,2.3+
2,2.3+
3,6+7.++
3,6+7.++
3,6+7.++
+
7*3,*.7+
7*3,*.7+
7,*37.24
3,47.11
243,*47.11
#dvertising
2,4*+.++
11,2*+.++
11,2*+.++
"uipments
714,6+.++
"$:&%$&:&.;;
"$&##$";".?>
"$"=:$%;".?>
Ccess
>";$>#>$%?
"$&";$=
"$;#:$">%.&>
nding -ash @alance
>";$>#>$%?
"$&";$=
"$;#:$">%.&>
Rent Cpense
5hilhealth alaries Income TaCes
:urniture Renovation/9easehold Total -ash Disbursements
*3,*+.++ 232,64*.+
36
D.)R,tu(n on In2,st,nt
The formula for Return on Investment is arnings before interest and taCes/total assets. @ased on the proBected balance sheets and income statements, the Return on investment on year *++ is . In year *++, the return on investment is 2.**. #nd in year *++1, the return on investment is *2.*1. The results showed that after the first year, the recording studio has found ways to utiliEe their assets more to contribute more income to the recording studio. The Return on investment on each year is computed as follows0 Y,a( <&&?
5 2*,24.**/ 2,644,73.+1 .=H
Y,a( <&&=
5 21,*7*.*/ 2,66,6*7.14 ".<
Y,a( <&&>
5 41,*7*.*/2,*,+2.6 <".<>H
37
