Calming chords

Calming chords is a music training tutoring company. The company is partnered with plans to transform its organization in the next two-three years from a corporation to a limited liability company.
Alex Harvey, Sam Lyon, Leah Vagnoni, Saim Aziz Songo, Sikder and Sophie Tiv, were formed as members of Calming Chord. The first step to executing this enterprise strategy is the creation of a business plan as an internal document.
The market
Calming chords has an already identified target market segments that will be pursued. The enterprise aims a number of music students as a number of calming chord partners have close relationships with mot professor from the music program of their respective college allowing the enterprise to customize to the specific course material as well as receive referrals from the said professors. There will be three market segments, namely; non-quantitative clients, quantitative clients and international students. The enterprise will mostly serve undergraduate students from Victoria and surrounding colleges.Services offeredCalming chords will offer a wide range of music lessons. The sessions will be set up a private or student groups for training. Private Sessions will offer intensified individual assistance as group sessions remain cost effective to students and the enterprise through the use of team-based approach that will be greatly encouraged.As an emerging social enterprise, calming chords will be addressing a current social problem by offering music lesson services to participants dealing with a form of anxiety and depression, in addition to individuals with a strong interest in learning how to independently play a musical instrument. It is anticipated that the demand for this service is relatively high due to a market research conducted by the organization. Furthermore, the value in the project’s music therapy benefits will be evident to people within this age bracket and demographic, demonstrating claimed improvements in overall health and wellbeing, whilst acting as a platform for leisure and community engagement. The project will also provide a comprehensive mobile application designed to teach users how to play a music instrument from the options of Guitar or Piano. The company will also offer a collection of invaluable past exam material. The company on top of that will use systematic analysis framework (SAF) as a unique problem solving approach that will help students solve many problem by themselves as opposed to tutors answering questions as they are raised by students.ManagementCalming chords will be led by Sam Lyon as the manager. He comes with a wealth of academic excellence as well as proven track record of training and tutoring. The operation manager is Sophie Tiv as the next in the chain of command followed by a plane of a number of managers with Naimur Sikder a the accountant, Leah Vagnoni as the as the office manager, Sain Aziz Songo as the IT Consultant and Alex Harvey as the marketing manager. The management line up was arrived at after examination of experience each one ha on their respective fields.The company is poised to grow since the management has insight into various fields that will affect the operations of the organization as they have worked hand in hand with a range of professors.MissionCalming chords is dedicated to assisting its participants with unique and innovative approach to training and tutoring participants connect with the subject matter they seek to master. Participant will develop tool they need for ongoing success in their fields through personalized and focused teaching processes. The success of the organization depends on its attention to participant needs and helping them achieve.Keys to SuccessDeveloping subject approaching methods that will help particpnat get their way around challenging concepts and ideas.Creating promotional services to woo other participantsListening to the need of participant and diagnosing their problems.ObjectivesGenerate contracts and referrals with surrounding schools and collegesIncrease participant numbers steadily from year1 to year 3.Achieve full daily capacity by the first quarter of the second year.Company SummaryThe enterprise provides tutoring service in quantitative course in Victoria area. Its services are primarily focused on students. Tutoring service are also available to student from other academic fields since the sessions focus on helping student grasp concept that will help them perform on their respective fields of study a well as develop study strategies to effectively do well at school and in life. A long-term focus on participant empowerment is favored over short-term problem-solving strategy.OwnershipThe organization is a partnership owned and operated by Alex Harvey, Sam Lyons, Leah Vagnoni, Saim Aziz Songo, Naimur Sikder and Sophie Tiv. The company is foreseen that it will be transforming into a limited liability company and an LLC structure will be favored to offer liability protection.ExperienceThe business owners are current students of Victoria University, with differing expertise in the business field, ranging from Information Systems, Event Management, Business Law, Accounting and Marketing. With limited experience in running a business, the team plans to outsource experienced staff members for the success of the venture.Recruitment options Online advertising will be the primary method used to source and employ required staff. Detailed job descriptions specific to the role will be presented on platforms including Seek and Career One websites, in addition to LinkedIn in order to broaden the search for the most suitable candidate. Training Programs Professional Development programs will be implemented on an annual basis, which will be held internally to keep up to date and refresh current skill setsSkill Retention Strategies Provision of constructive feedback and career development opportunities Evaluation of performance and measures of satisfactory Registration detailsBusiness name: Calming ChordsTrading name(s): Calming ChordsDate registered: 11 September 2017Location(s) registered: VictoriaBusiness structure: CompanyABN: 46 006 973 262Business premisesBusiness location: The business space will be situated in the inner west suburbs of Melbourne, Victoria. In relations to building size, the acquisition of space is to be sufficient to hold lessons and will take the smaller scale, approximately the ideal space of 55sq metres. The premises will be easily accessible via public transport for participants to attend their music arrangements, eliminating transportation issues and a negative impact on attendance levels.Inspire9. Co working space Dream factory Buy/lease: The Business will require a leased space for employees with office desks, computers, and access to fast speed Internet.Key personnelCurrent staffJob TitleNameExpected staff turnoverSkills or strengthsMarketing/ Sales ManagerMr Alex Harvey[12-18 months]Bachelor Degree in Marketing[Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence.]IT ConsultantMr Saim Aziz Songo [12-18 months]Bachelor Degree in Business (Information Systems)AccountantMr Naimur Sikder[12-18 months]Event ManagerMiss Sophie [12-18 months]Owner/MangereMr Sam LyonsBachelor of Law and Business (Music Industries)Required staffJob TitleQuantityExpected staff turnoverSkills necessaryDate requiredMusic Specialist/Teacher[1][2-3 years]3 years experience in teaching Guitar and PianoCommencement date of projectMobile Application Specialist[1][2-3 years]Minimum 2 years experience in formation of mobile applicationsComprehensive understanding of Cloud computing technologies, and emerging computing trends with ability to connect technology with measurable business value. Few months before roll out of appMental Health Referral Assistant[1][2-3 years][Month/Year]Training programsProfessional Development programs will be implemented on an annual basis, which will be held internally to keep up to date and refresh current skill sets.FinanceFinancial objectivesseeks to achieve a break even in the first year of operationscontinually budget and forecast to ensure revenue and cost measures are being met.seeks to generate higher financial returns and earned sufficient funding to repay the loan within 3 years Earn enough money to pay the interest and Loans at the first year.Have $8,000 net profit after pay the interest and loans at the second year.Have $16,000 net profit after pay the interest and loans at the third year.Finance required The company needs $85,000 to set up the company in the plan. So it need to borrow at least $86,000 to make sure it can set up successful. The money has some different purposes. So we can divide the money by purposes. It can borrow $50,000 to buy the truck from banks, which is the most of the money and $20,000 to pay rent. Then it can get money from business partners. For example, we want to print the truck. We can have an agreement with a big company, which is print its logo on its truck to make their advertisement and the company to generate income. This part of money will be $500 which is not very much, but it is earned by the business which should not payback with the interest. We can find 25 participants, who can contribute $500 in subscription fees and allow the company to pay back in 3 years. It is not easy to find the new participants. The company can find the admirations of healthy food who are teachers or students in the VU. If they really want have healthy food in VU, they will invest us. At the end, the company has 6 members, it can also pay $500 each in the business as the capital. Required $60,000 loan from the suncrop bank to start-up the businessWith a fixed interest rate of 4.45% for 5 yearsMonthly payment $12534AssumptionsThe financial tables on the subsequent pages are based on the assumptions listed below:1. The assumption about the open day, which is only 26 weeks per year and the open hours, which is 6 hours per day. Because the business is in the VU and the customers are the students in the VU. Students always go to VU between march to June and July to October. Without that day, there are not enough students in VU. That will cause a scenario where the company cannot earn enough money to pay wages and expenses. So to reduce the cost, it decided to open on that day. There are only 26 working weeks per years. Student always goes to class between 10 am to 4 pm; those also are the music classes. There are 6hours per day. The profit and wages expected are based on this assumption.2. The assumption about the interest rates is the 5.49%.The borrow interest rate of Commonwealth Bank is 5,49%. The borrow interest rate is fixed, which do not follow the time change. This part of the money is the most and the interest rates of other parts are also close. The company makes the assumption that all the interest rate is 5,49%. So, the interest payable is based on this assumption.3. The assumption about income tax rate is the 28.5%.From the Australian Taxation Office, it is easy to find the tax rates of the small business entities is 28.5% after 1 July 2015. So the company makes an assumption which is the small business tax rate will not change in next 3 years. So, the Income tax is based on this assumption.4. The assumption about the depreciation of most things is linear depreciation and the useful life is 10 years and the truck is 20 years.The assets should be calculated the depreciation. And there are some different kinds of assets. For example, the computer, phone, truck furniture. There are lots of ways to calculate the depreciation. Because the use strength of all the assets is average, there is a common way to calculate the depreciation, which is the linear depreciation. So, the fixed assets are based on this assumption. The truck not drive too far every day and it only drive 6 mouths per year. So it should have a long life, which is 20years. Borrowing interest rate 4.45%Income tax 28.5% after 1st July 2015Linear Depreciation of fixed assetStartup costStart-up costs for 2018START-UP COSTSCost ($)EQUIPMENT/CAPITAL COSTSCost ($)Registrations 　　　Business name$75Start-up capital$31,727Licenses$2,500Plant & equipment　open bank account$10Truck$50,000Domain names$15POS$400Trade marks/designs/patents$895Phones$250Truck registration$32Juicers$1,200Accountant fees$600microwave$200Solicitor fees$800Tall-cup Sealing machine$178Utility connections & bonds (Electricity，light)$100website$600Training$500 refrigerator$500Wages（weekly）$1,800Renovations （paint）$200Stock/raw materials （weekly）$800Security system （lock,camera）$600Rent$20,000Office equipment　Insurance　Furniture（Bench Table）$300Truck$1,200　　Public and product liability$600　　Workers compensation$800　　Business assets$1,000　　Uniforms$600　　Marketing & advertising$300　　Total start-up costs$31,727Total equipment/capital costs$85,855Balance sheet forecastBALANCE SHEET FORECAST201720182019Current assets　　　Cash$64,093$101,941$146,653Petty cash$500$500$500Inventory$700$700$700Pre-paid expenses$534$534$534Fixed assets　　　Renovations/improvements$200$200$200Furniture & fit out$270$240$210Truck$47,500$45,000$42,500Equipment (except Truck)$3,715$3,302$2,889POS$460$420$380More…　　　Total assets$117,972$152,837$194,566Long-term liabilities　　　Loans$68,800$51,600$34,400More…　　　Total liabilities$68,800$51,600$34,400　　　　NET ASSETS$49,172$101,237$160,166Profit and loss ForecastPROFIT & LOSS FORECAST201720182019Sales$234,000$254,000$274,000cost of sales$80,000$90,000$100,000　　　　　　　　Gross profit/net sales$154,000$164,000$174,000　　　　Expenses　　　Truck $1,000$1,000$1,000Advertising & marketing$300$300$300Bank fees & charges$200$200$200Utilities (electricity, gas, water)$400$100$100Telephone and internet $500$500$500interest payment$4,320$3,456$2,060Loans payment$17,280$17,280$17,280Rent & rates$20,000$20,000$20,000Uniforms$300$300$300Repairs & maintenance$200$200$200POS$150$150$150Insurance$3,200$3,200$3,200Wages (including PAYG)$80,000$80,000$80,000income tax-$10,677$8,195$11,907　　　　Total expenses$117,173$134,881$137,197　　　　NET PROFIT$36,827$29,119$36,803Expected Cash flow201720182019Break-even analysis