The financing will be used to acquire human capital, pay for marketing and promotions, hire venues and purchase other venues for events.
The company aims to produce and manage young musicians, provide them with stability by negotiating deals on their behalf and organizing their schedules adequately while ensuring that they are provided with education.
The company produces artists and manages their careers. It promotes their talent and markets it to individuals who are above 16 years of age with stable financial and social backgrounds. The other intended markets are the uneducated and unemployed individuals because we intend on spreading the message that they need to educate themselves in order to make it in life through the music being produced.
The company will host events, sell the artists music in music stores, sell broadcasting rights for their music to media companies and go on tours in order to attract more individuals. The project is currently in its planning and administrative phase and things are falling into place but funding is required in order to achieve our main mission objectives. The artists that are employed are very talented and the company will employ more artists as soon as it has the funds to do so, as too many artists will be un-manageable at this stage.
We expect to begin operations fully by the end of August 2012 and to host our first live performance on the 21st of September 2012. The expected return on investment is 25% on average for the next 3 years, increasing gradually year-on-year and the shareholders will be receiving annual dividends with the repayment of the capital amount expected to be paid in 5 years time. The company needs $62,500 for employees, other overhead expenses such as rent as well as marketing and branding.
We are currently in the start-up phase and in the process of acquiring assets such as office space and office equipment. Our artists have been performing at some shows but we have not been able to profit from such as they have been performing as guests and thus have been receiving minimal compensation. They are also in the process of recording an album each which will be released by the end of September 2012.
You can get in touch with us through Merar.
Our competitive advantage is that the company aims to provide the artists with education and the artists that are part of the company have some experience in the music industry and are very talented.We plan on making revenues from ticket sales through hosting concerts, tours, selling beverages at our events, selling CDs, the sale of artist related regalia and renting out acquired land and buildings to third parties for events.The company aims to use many investment intiatives and establish many sound and fiduciary relations with individuals throughout the commercial landscape. We have plenty of content that needs to be managed and released but will only be done when we have certain necessary resources such as capital for marketing and promotions.
The staff contingent is very enthusiastic and is willing to go the extra mile. They have hosted a number of live events and are able to execute plans to the best of their abilities. They have vast experience in organizing events for non-profit organisations such as SHARC which is an HIV/AIDS initiative at Rhodes University and other societies such as Bua poetry society and Botswana society. they know how to envision great shows and we expect to make large amounts of revenue through hosted tours and concerts that we will have starting in small towns and moving to larger cities in order to build revenue and exposure. The price of our product is relatively low as compared to other companies. Our direct competitors are African Music Productions, Blue Division Events and Music Management, Maverix Music Suid Afrika and Zomba Group of Companies. Through research we know that in our target market there is a gap whereby we will capture 70% of the market share through advertising and branding of our product.
We will use social media sites as much as possible as this is the new form of marketing as well as e-branding. We are currently in the process of designing a website for the company and this will be up by mid-September 2012 as we need it to be perfect. We also plan on using radio and television to market the musicians and build the company brand. We will also employ other marketing strategies such as posters, fliers, branding of clothing and apparel and word of mouth.
Our advantage is that the well being of the artist is our first priority and we are not looking to exploit them but further flourish their careers. We are working with young and enthusiastic individuals who have drive and conviction. We have been employing the least cost methods in every event that we have had and will continue to do such to ensure the profitability of the company. Find us on: www.khandoptyltd.org.
Music is a commodity that every individual enjoys so there is a huge demand for it.We will be offering the public with young and old talented musicians from a variety of genres. The company enters into formal contracts with the relevant parties that the musicians deal with and monitors the sales of the artists' content. We have hosted a few events in small towns to see the market reaction and the response was more than expected and we aim to improve on that on a daily.
Many individuals in the industry respect the musicians that we manage. The industry has a lot of money in it but the right strategy needs to be employed in order to grasp those profits. This will be done through immense fiduciary relationships with the youth and older generation individuals. The company will also rent out the premises that it has acquired to other individuals for whatever commercial reasons they have. The company aims to venture into other avenues of profit-making throughout its years of operation such as youth development and economic growth initiatives. There will be investment in growth initiatives as well as liaising with corporate brands in order to build sustainable, profitable and equitable relations with third parties.
The purpose is to expand branding and marketing corporations through business to business relations and strengthen ties with media corporations that will result in extensive media coverage for the artists as well as improving those corporations' revenues through the streaming of our content. Intercontinental and global expansion will occur through the coverage resulting in exchange related revenues. The rand is currently strengthening against other currencies and the development of the South African economy is growing at a steady pace due to the evolving political landscape meaning that there will be certain policy changes that will result in much larger global relations. External long term investment in the economy will be a major factor which will help the global economy through the trade of resources and expertise required by business corporate operations. This will result in a higher global income scale through specialization of services because human capital and other resources will be utilized to facilitate this. The return for global investors will be much greater.
The financing will be used to acquire human capital, pay for marketing and promotions, hire venues and purchase other venues for events as the entity intends on owning its own commercial property. Purchase sound equipment, ensure transportation of the artists to venues as well as provide them with accommodation where ever they will be performing.
Large amounts of capital will be needed to purchase other assets such as computers and an Internet connection to ensure that business operations are monitored and an office space to perform these operations as well as to store relevant company documentation. The company is looking to acquire one major round of financing and let the profits cover the rest of the operations. A breakdown of the financial aspects such as expenditure and income as well as other costs has been provided for in the spreadsheets that have been uploaded on the website.
We aim to move into our offices by the end of September 2012 and host a major tour throughout Africa during the December 2012 period. We also want to have some smaller events that we will be hosting from 20 until 22 September 2012. We aim to have a staff contingent of 10 by February 2013.
We are looking for:
- Equity investment of $52 500 where the shareholder will be offered a 30% holding in the company and the expected ROI will be 23% in the first year and will gradually increase through the years. 10% of the profit will be paid out to shareholders as dividends regularly to ensure stabilization. The capital amount will be repaid in 5 years time. The company is looking for an investor who is willing to get involved and willing to provide mentoring.
- Debt funding of $10 000 which will be repaid within 3 years with a nominal interest of 8% p.a. compound.