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1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a comedy club while showcasing the expected financials and operations over the next three years. Comedy Club, Inc. (“the Company”) is a New York based corporation that will provide an exciting line up of comedians within the venue and that will also provide alcoholic beverages to its customers in its targeted market. The Company was founded by John Doe.
1.1 The Services
Management is committed to developing the Comedy Club into a premier nighttime entertainment location. This venue will feature alcohol beverage services in additional to comedic entertainment. Other services offered by the Comedy Club include:
- Full food and beverage services
- DJ Services (from time to time)
- Event planning services
The third section of the business plan will further describe the services offered by the Comedy Club.
1.2 Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
- Development of the Company’s Comedy Club location.
- Financing for the first six months of operation.
- Capital to purchase sound equipment and an inventory of alcohol.
Mr. Doe will contribute $50,000 to the venture.
1.3 Mission Statement
Management’s mission is to have the Comedy Club become one of the premier nighttime entertainment locations in its targeted market.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the entertainment industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Comedy Club, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Comedy Club requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Comedy Club, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Comedy Club. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
Below is a description of the entertainment services offered by the Comedy Club.
3.1 Venue and Sales of Alcohol
The Company is committed to providing a true comedy club atmosphere. The club will include additional amenities such as:
- Established and up and coming comedic performances on a nightly basis.
- Large, Flat screen TVs that feature a variety of channels.
- Pool tables
- Darts
A substantial portion of the revenues generated by the business (approximately 85%) will come from the direct sale of alcoholic beverages. Mr. Doe intends to hire several bouncers and door attendants to ensure that only people over the age of 21 will be allowed to enter the Comedy Club. A state or federally issued ID will be required for everyone to enter the location.
3.2 Cover Charges
The Company will also generate secondary revenues from cover charges on busy weekend nights or when a popular comedian is at the location. This is an important secondary revenue stream for the business as it will defray the costs of hiring a well known comedian or artist to perform for the evening.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the comedy club industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic climate in the United States is moderate. The issues related to the COVID-19 pandemic have been resolved. Interest rates have increased in order to counter issues that have occurred with inflation. The economy has remained strong and unemployment rates have remained low.
It should be noted that entertainment venues tend to remain profitable despite negative economic changes. In the event of an economic recession, it should have a minimal impact on the Comedy Club’s ability to generate revenues.
4.2 Industry Analysis
There are several nighttime entertainment venues in the United States. A U.S. Economic census report indicates that there are over 53,000 individual establishments in the country. This number is expected to continue as nightclubs and comedy clubs remain a popular form of entertainment among people under forty. Each year the industry generates more than $12 billion of revenue. The industry also employs more than 250,000 people nationwide.
As the trend continues, Management expects that the business may incur price warring among neighboring nighttime venues. However, the atmosphere of Comedy Club will be geared towards a higher-end client that is willing to spend extra money to enjoy the many additional value added amenities at the facility.
4.3 Customer Profile
The Comedy Club’s average client will be a middle income person between the ages of 21 and 40 living in the Company’s target market. Common traits among clients will include:
- Annual household income exceeding $30,000
- Lives or works no more than 15 miles from the Company’s location.
- Will spend $25 per visit to the Comedy Club.
In this section of the analysis, you will need to describe the size of the market, the average household income, and the number of people that fall into your demographic profile. This information can be found by using online census data and directories that provide this information.
4.4 Competition
In this section of the business plan, you should conduct a thorough market analysis of other comedy clubs in your market. Usually, there are only a handful of similar competitors in smaller scale markets although major cities have a number of comedy clubs in operation.
5.0 Marketing Plan
Below is an overview of the marketing strategies and objectives of the Comedy Club.
5.1 Marketing Objectives
- Maintain an expansive presence among all major social media platforms.
- Establish relationships with comedic promoters in the target market.
- Aggressive use social media marketing in order to drive traffic to the Comedy Club location.
- Distribute flyers and related advertisements when promoting the club and specific comedians.
5.2 Marketing Strategies
Foremost, the business in the process of securing a highly visible location that will house the operations of the business. The Company intends to acquire a location within a heavily trafficked area of the downtown market. The location will feature substantial exterior signage that showcases the operations of the Comedy Club.
The Company will maintain an expansive online presence that will encompass both a proprietary website as well as pages among all social media pages. The Company’s website will be updated on a daily basis in order to showcase which comedians will be performing at the comedy club. This website will be mobile device friendly. Within the first six months of operation, the business will have the platform undergo search engine optimization so that it can be quickly found when searches for comedy clubs are conducted.
The business will maintain an expansive presence among all social media platforms including Facebook, Instagram, X (formerly Twitter), YouTube, and Tik Tok. The business will update these pages daily so that followers can learn about upcoming comedic acts that will be at the location. The Company will frequently post videos to YouTube of prior events (with the permission of the comedian).
In addition to these strategies, the Company will have its street team distribute flyers to passers-by during evening hours. This will create interest in the club among people that are near the location.
It should be noted that it is expected that comedians will promote their acts at the location. This will further create brand name awareness for the Comedy Club.
5.3 Pricing
In this section, describe the pricing that will be implemented as it relates to cover charges, food/beverage fees, and specialized event fees.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- The Comedy Club will have an annual revenue growth rate of 10% per year.
- The Owner will acquire $125,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, nighttime entertainment venues, like comedy clubs, remain a popular and relatively in expensive form of entertainment. As such, only a severe economic downturn would result in a decline in top line revenues for the business.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
