Record Company Business Plan

RECORD COMPANY BUSINESS PLAN:

[ GREENHOUSE RECORDZ ]

[ GREENHOUSE RECORDZ STUDIOS ]

[ 5706 CHENE ST. UPPER LEVEL; DETROIT, MI 48211]

· MISSION STATEMENT

· EXECUTIVE SUMMARY

· COMPANY DESCRIPTION

· INDUSTRY ANALYSIS

· MARKETING & PROMOTION

· THE MANAGEMENT TEAM

· THE FINANCIAL PLAN

MISSION STATEMENT:

[GREENHOUSE RECORDZ] will take advantage of the new technologies andpossibilities available today within the music industry offline and online in order todominate the entertainment market across the world by producing and promotingextremely high quality entertainment products. We will consistently strive to be profitable by producing and distributing extremely high quality recorded music product which will be delivered in the form of [Compact Discs / DVD, and Internet downloads,].

[GREENHOUSE RECORDZ] plans to generate additional revenue through thesale of related traditional merchandise such as [T Shirts, Sweaters, AutographedItems, Books, posters, flags, stickers, buttons, and wristbands ] and via sales of USBkeys filled with music and other media, [videos,downloads and mp3's]As an independent record company we will have the advantage of owning and controlling all the rights to our music including copyrights and related licenses of our product. This will allow [GREENHOUSE RECORDZ] to create an almost immediaterevenue stream and be profitable in a short period of time while we work oncontinuing the growth of our catalogue.

EXECUTIVE SUMMARY:

[GREENHOUSE RECORDZ]’s President/CEO,

[ Nathaniel (DJ BL3NDZ) Monroe ] has produced[ 25 ] of [ Related Products such as Singles, Albums, Instrumentals, Music Videos, MP3's and Downloads ] throughout his career.

[GREENHOUSE RECORDZ] has put together an experienced team of artists,and producers of which when combined, the productions have made it to the top ofthe [Reverbnation charts artist & instrumentals such as GreenhouseRecordz and ijustbeatz]

[GREENHOUSE RECORDZ] has developed strong connections in the music industrythrough relationships with industry professionals such as [Jamel of LOUDRAPBEATZ.com]. By using international online and offline Distribution Company’s[CDBABY,ITUNES,SOUNDCLOUD, and GOOGLE PLAY] will provide [GREENHOUSE RECORDZ] the chance to reach and generate revenue in all of the world’s music markets.The professional team of [GREENHOUSE RECORDZ] has established a passion for music genres that includes [ Rhythm & Blues, Hip-Hop,Rap,Jazz, and Gospel] The passions for this type of music, combined with the experience in how to break through in the music industry and make a significant impact in all of these genres, will allow the projects to have no trouble reaching the intended audience.

[GREENHOUSE RECORDZ] plans to set itself apart from all other independent record companies in the same genre by using a constantly updated marketing and promotional plan. By using a unique one of a kind adjustable promotional campaign we will be able to take advantage of the constant changes that now occur within the industry on an almost daily basis. Having monitored the successes that other independent labels and artists have gained within the last years due to the growing popularity of [digital downloads on the internet, mp3's and music video's] allowing artists and labels to now reach audiences at home and capture a new potential fan within minutes, we can now target the market, present our music as a stream, obtain email addresses of those who have warmed up to our productions and artists, and finalize a first sale almost immediately in the first hour by following up with special offers.Weekly or monthly pre-programmed automatic follow up mailings would keep ourproducts fresh in the mind of the targeted audience. By utilizing auto respondertechnology we can now plan an email campaign ahead of time to run on autopilotand meanwhile focus on other areas of our campaign. Besides the internet, of course [traditional full-length CD albums and other media] will be manufactured by [GREENHOUSE RECORDZ], and we will develop other revenue streams using conventional distribution of merchandise via offline retail outlets.[GREENHOUSE RECORDZ] team is seeking [$100,000.00] in equity investment capital for our exciting company. These funds will mainly be used to: a) [establish a corporate office,] b) [maintain expenses to run the business,] c) [develop our artists and secure new artists,] d) [fund music production budgets,Video Production and other creative expenses] e) [fund marketing and promotional budgets.] f) [fund free concerts for more exposure]

Once [GREENHOUSE RECORDZ] reaches profitable levels, we would be in a position to evaluate several options for the future of our company.

1. We could remain completely independent and continue to operate as planned.

2. We may receive the opportunity to be acquired by what may still be considered a major record company at that time, or by some other form of corporate entertainment entity which may very well develop over the years. We may also evaluate the possibilities of an exit strategy which may be considered when our team and our investors are in synch with the idea.

COMPANY DESCRIPTION:

Introduction

[GREENHOUSE RECORDZ] is a Record Company that will be providing high quality multimedia entertainment in the form of [Audio, Video,] to a wide range of consumers and will aim to provide a product of commercial appeal. "[We Grow Brands]" is one of our motto’s, and by remembering this on a daily basis, we will use this knowledge and plan to spend much of our time, energy and finances available ensuring that our marketing efforts are heard and seen throughout the marketplace. [GREENHOUSE RECORDZ] will compete in the marketplace by earning revenue immediately through the creation of high quality and enjoyable music in the form of [Compact Discs (CDs),DVD’s (sound & picture combination), CD Rom, Instant Downloadable mp3 files, and vinyl albums for DJ's and other consumers still using this format.] Additional income will be produced from [merchandising, concert tickets, and video/radio promotions]. While conventional marketing paths are being implemented and followed, utilizing the power of the internet, [GREENHOUSE RECORDZ] will also be able to immediately turn around and create valuable income streams right away even only hours after the recordings have been completed. This can be accomplished by having a pre filled database of ready and waiting fans with cash in hand who signed up previously to be put on a waiting list. Through the power of technology and the talent of our artists and producers we can create new quality saleable recordings at lightning speed. Using the aforementioned strategy we can turn this around into fast revenue streams and put the funds towards additional promotion and growth of [GREENHOUSE RECORDZ] [GREENHOUSE RECORDZ STUDIOS] PERSONNEL

[GREENHOUSE RECORDZ] plans toput together an extremely talented group ofindividuals who are educated on the music business and passionate about the music itself. [GREENHOUSE RECORDZ] Is in its initial stages, and will develop the talent, produce the music and market the finished product to the masses. Based on the success of this, [GREENHOUSE RECORDZ] will add more ways to profit in addition to the distribution of music. [GREENHOUSE RECORDZ] will strive to fully maximize the success and profit potential of each artist in their genre of music. We plan to produce and promote inspiration and authenticity, yet commercially viable music in all the popular major selling genres such as [R&B, Hip Hop, Rap, Jazz, and Gospel].

RECORDING OF THE MUSIC:

Current technologies such as computer based music production software such as[FL Studio Producer Edition] for recording and [Studio One (editing software)] forediting will allow us to do much of the music and rhythm programming and pre-production from within a basic environment consisting of a computer and software.

MANUFACTURING:

Currently many choices for manufacturing music product are readily available inorder to turn our productions into salable formats such as [compact discs, DVD’s,videos, downloads,mp3's]. [GREENHOUSE RECORDZ] will be outsourcing this job to manufacturing facilities that have proven themselves over the years in providing high quality product. Even though we will choose our manufacturing facilities based on pricing per units, we will also be selecting based upon quality of the product as well as the ability to meet our delivery expectations. [GREENHOUSE RECORDZ] has narrowed our choices down to several manufacturers such as [Cdbaby] [Disc Makers] and [CD Master Copy].

DISTRIBUTING OFFLINE:

[GREENHOUSE RECORDZ] will consider distributing its’ product internationally through [UNIVERSAL RECORDS OR SONY MUSIC] By allowing this established distributor to distribute our product [GREENHOUSE RECORDZ] product will be exposed to the world's music markets. Through signed agreements and arrangements with [UNIVERSAL RECORDS OR SONY MUSIC] [GREENHOUSE RECORDZ] will generate [$10.00 -$15.00] per unit sold.

DISTRIBUTING ONLINE:

[GREENHOUSE RECORDZ] Will sign non-exclusive licensing agreements with [Itunes, Cdbaby, DatPiff, Amazon, SoundClick and or Musicxray] in order to make our products available on the internet as digital downloads. This will allow us to reach the online audience who have not visited physical record stores recently. By targeting the online community we will be able to increase our revenue significantly.

MARKETING AND PROMOTION:

[GREENHOUSE RECORDZ] Will develop and implement unique ways to market and promote our artists. A customized marketing campaign will be devised for each artist based on the genre of music. Our main goal will be to have a plan in place prior to the completion of an album in order to keep the momentum going. This as opposed to finishing an album and then finally beginning the next phase. [GREENHOUSE RECORDZ] will work with Established Music Video Production companies in order to create the visual presence for our artists. A music video will be produced in support of albums released by us. Music Videos will be produced for at least [3 SONGS] from the album to be released, and the production and shooting will be as close to the release of a particular song in order to keep up with the ever changing trends. For example, if a music video is targeted to the younger hipper crowd, and the video shows a person using a cell phone, we would not want that phone to be an older model. We would attempt to gain access to a phone model that may not have been introduced as yet into the market in order to keep the video looking fresh. [GREENHOUSE RECORDZ] plans to hire independent radio promotion companies in order to reach radio station program directors and music video network directors. We will also make use of the services of Public relations firms in order to publicize and promote [GREENHOUSE RECORDZ] recording artists. In addition, our marketing plan television promotion, dance club promotion, submitting our products to the movie industry, and this will be followed up on via telephone and e-mail, and we will make use of the Internet in order to capture the online audience via music video websites, Internet radio stations, etc.

MUSIC VIDEOS:

Music videos have been an important element in order to contribute to a successfulproduct launch for an artist. [GREENHOUSE RECORDZ] plans to shoot at least three music videos for each new album released. Upon completion of the music videos, they will be distributed to such networks as [BET] [MVT] and [106 N PARK]. [YOUTUBE] which currently are the most watched music channels in [ CENTRAL US ] where we plan to market and promote our product. We will also be making use of the services provided by record and video promotion companies in order to secure air time for [GREENHOUSE RECORDZ] artists. Besides traditional offline music video promotion channels we will further utilize the internet in order to gain additional exposure for our music videos. This can be accomplished by creating profiles for [GREENHOUSE RECORDZ] on popular video websites such as [YouTube, Soundcloud, and Reverbnation,] and uploading our music videos onto these sites.

DISTRIBUTION FOR OTHER LABELS:

[GREENHOUSE RECORDZ] will make use of its distribution network to allow for the distribution of projects for other smaller, independent record labels. Affording [GREENHOUSE RECORDZ] the opportunity to, earn a middleman fee on the distribution and manufacturing of other companies' products. [GREENHOUSE RECORDZ] will earn between [$2.00] and [$4.00] for each unit manufactured and distributed. The independent distribution division of the company will be incrementally increased.

MERCHANDISING:

[GREENHOUSE RECORDZ] will create additional income and profits through the creation and manufacturing of merchandise. This merchandise will be based onour company and artist’s image and music that is released. The creative side of this including the development of images such as logos and other artwork related matters will be handled by both our internal creative department and also outsourced to potential talented artists whose work fit into our creative vision. The distribution of merchandise including but not limited to [t-shirts, posters, buttons, etc.] will be outsourced to an established merchandising company which will handle the online and off-line retail aspects of this. Normally were most record labels may only sell standard items such as [t-shirts, posters, buttons, etc.], [GREENHOUSE RECORDZ] will stay ahead of the game by continuing to research what is new in today's market and adapt our merchandising strategies towards this. This newer type of merchandise would include [USB keys that come preloaded with our artist’s music, or even fully loaded MP3 players and downloads].

CONCERT PROMOTION:

[GREENHOUSE RECORDZ] plans to promote a number of live concert shows during any given month. These concerts will be held at a diverse selection of popular concert venues throughout [US]. To begin, [GREENHOUSE RECORDZ] will aim to put together and promote approximately [3 number] of shows per month. By doing so this will allow additional exposure for our company and recording artists. In addition, by putting on concerts will allow [GREENHOUSE RECORDZ] to generate additional revenues from the sale of [Merchandise, Concert tickets and CD's].

MUSIC INDUSTRY ANALYSIS - INDEPENDENT RECORD LABELS:

Independent record labels, especially newer start up labels usually operate onsmaller budgets in order to find develop and produce music for talent, and also toput towards the marketing aspect of the business. In order to compensate for the lack of funds, independent record labels usually end up being forced to become very creative in finding new ways of getting their music heard. For an independent record label it is important to find, sign and develop unique, dedicated and extremely talented artist’s right from the start in order to produce and release well above average high quality music. This is because an independent label may not be able to afford investing time energy and funds into a project that ends up producing mediocre results or loss in profits. Once an independent record label finds an artist that is a sure bet, and the artist has become popular and has grown a large loyal fan base, the independent label that the artist signed to will be able to take advantage of the artists popularity, and many new opportunities may present itself to the label.One of these opportunities that may present itself is based on the fact that Majorrecord labels have had a history of either being open to licensing finished productfrom an independent label that seems to be doing well, or at times may even investfunds into other areas such as recording and completing an album projects, up to themanufacturing, distribution, promotion and marketing of an artist with a potential.In many cases however, these type of arrangements come with a price for theindependent label as the larger company may ask for larger percentage of the totalincome in exchange for the upfront services and funds provided. At times an independent record label may choose to simply stay with using independent manufacturing and distribution channels available today such as [UNIVERSAL] and this makes sense when sufficient demand has already been created either nationally or internationally for the product intended to be distributed.

MUSIC INDUSTRY SALES VOLUMES:

Compact Disks are still a popular format while digital music sales are catching up tomake a greater share of music sales. In the first half of 2009, CD sales comprised of 65 percent of all music sold while paid digital downloads comprised of 35 percent of music sales. 2 years prior in 2007 digital music downloads comprised just 20 percent of sales. This means that digital music sales are growing at a rate of 15 to 20 percentannually, while compact disk sales are falling by an equal proportion. If this trend continues, then it can be predicted that digital music sales will almost equal CD sales by the end of 2015. The recorded music industry generates a greater proportion of its revenues through digital sales than the film, magazine and newspaper industries combined.

Industry Digital share of revenues:

Games 35%

Recorded music 20%

Newspapers 4%

Films 4%

Magazines 1%

PWC Global Entertainment and Media Report (2008), IFPI