The sound and lighting business plan outlines the lighting, sound, and other services your business can offer, as well as the entities you will sell to. Are you providing lighting schemes to stage companies and theaters? Private homeowners, commercial clients, other…? What are your sound capabilities -- automotive, theater, outdoor settings, etc.? The plan should outline these in as much detail as possible so that potential investors, partners, or lenders know what your role in the market will be. Also make a section describing the businesses you will compete with directly and indirectly, giving their location, sales figures from the previous fiscal year, and the strengths and weaknesses they have exhibited in recent years. Other items to address in detail:
• Who are your suppliers for the equipment?
• What is your profit margin on an average installation?
• Do you know the amount of capital you need and do you have an equity or payback scenario in mind?
• What are your personnel needs over 3-5 years?
• Can you outline the marketing and advertising techniques you envision for the next few years?
The financial questions here can be answered in part by creating a complete pro forma showing 3-5 years of projected revenues and expenses. The profit you hit in either Y3 or Y5 is the benchmark against which all of the investor/lender payout scenarios are measured. If your sound and lighting concepts are revolutionary or have no comparable in the market, you should describe this in detail in your competitive edge section and give as much data as you can in support of the case that you deliver something fresh to the market. Also, play up any pre-standing industry connections your business has that can generate sales even in a weak market. Need help defining the opportunity or making a compelling financial model? MasterPlans can help you. Call 877-453-2011 to speak with a consultant today!
