A business plan for open air stage, much like a plan to launch a concert venue or theater, needs to start with some obvious groundwork -- things that are essential to this business but might not be intuitive to an investor or bank loan officer. The location, nature of the structure, and purpose of the stage are all things you need to delve into, as well as the demographic makeup of your most likely attendees, the local market for the sort of shows you will put on there, and the price points that you can likely ask for tickets. Knowing the permitting, security issues, and other incidentals that can impact your model is also helpful and will show that you have done your homework. The business plan should have answers to:
• What sort of events will be hosted there?
• What fees will you charge participants?
• How will the equipment be maintained?
• What full-time staff do you need, vs. 1099 contractors?
• Do you know how much capital you have to raise?
The business plan for an open air stage might need city approval as well, so make sure there are not specific criteria that city planners or council members will look for in the proposal that a conventional business plan would not need to cover. The business plan should also have a working financial model (with assumptions disclosed), even if it's operating mainly with estimates or placeholders. Tables to include for sure are the use of funds, a revenue forecast and P&L, and a balance sheet and cash flow. Pinpointing when you will break even – and what the effects of weak ticket sales or event fees might be on your overall model (the sensitivity analysis) – can also be smart to show. MasterPlans has been writing business plans since 2002, and has more than 10,000 projects under its belt. You can turn to the MP experts by calling 877-453-2011 any time!
