Business Plan for Year 2001 

CPA Music Publishing Company

Business Plan Topics

Coffee's Productions & Associates / CPA Records is currently operating as a full service record company. Coffee's Productions & Associates is the parent company that currently consists of two subsidiary companies, CPA Records Companyand CPA Music Publishing Company.

CPA Records is a full service record label that provides high quality services of recording studiosand CD Duplication. CPA Records will focus on releasing various genres of music that will include Gospel, R & B, Blues, Jazzand Hip Hop.

CPA Records was founded on November 5, 1999. Since its inception, the record company  has gained national recognition from the release of its debut CD, AL McDaniel & Nu Believers, "A Message To Deliver." This debut CD enjoyed early success  by having two (2) songs that received  national radio airplay on "The Light," (Sheridan Gospel Radio Network). The success of the two hit titles from the debut CD also secured a Pressing and Distribution (P & D) contract with the national distributor, Select-O-Hits, Incorporation, Memphis, Tennessee.

On August 30, 2000, CPA Records  released its second CD, "Coffee," Performing The Most Requested Greatest Oldies. This CD consists of 15 songs of some of the greatest hits of all times that were recorded by legendary artists such as Frank Sinatra, Lou Rawls, Marvin Gaye, Barry White, Otis Redding, B. B. Kingand others.

CPA Records has just completed the recording of its sophomore gospel CD titled, AL McDaniel & Malak, "Be Prayed Up." The scheduled release date is March 5, 2001. This new CD has great potential and great expectations of being a chart buster that will enjoy excellent financial success. To increase the marketing, promotionsand sales of this CD, We have completed the shooting of a music video on the featured track #1 titled, "Is There Anything Too Hard For God?"

Although CPA Record's early success in the music industry has gained it a national pressing and distribution dealand national radio airplay contacts, it is a self-sufficient record company that provides full CD manufacturing and CD duplication services.

CPA Records is poised to become a powerhouse in the music industry. Through hard work, quality productsand outstanding services, the record company has earned the title as a national record company in less than a year's time. This is a great and rare achievement for a small independent record label that is operating effectively and efficiently in the midst of its large major record labels competitors in the music industry.

CPA Music Publishing is a registered (BMI) music publishing company. The primary function of this company is to publish the songs recorded and released by CPA Records Labeland to collect and disburse royalties payments received from BMI to the writers and artists that is signed by the record label.

Currently, CPA Records / Coffee's Productions & Associates, is a home-run business. This enables the company to operate with minimum expenses and to maintain low overheads. To expand growth and increase revenues of the company(s), a loan of approximately $25,000.00 is needed. This money would be used to up-grade current equipment, to purchase airplay on additional mainstream radio stations, to pay for a music video on the new Gospel CD, promotional and marketing costsand to sign and release CDs on new artists to the record label. This loan would be paid back with a 12-month deferment period starting in installment of a minimum of $400.00 monthly. The first payment would be made 12-months from the loan date with appropriate interestsand also a possible negotiated partnership agreement that guarantees the investors a percentage of sales of products.

The company's up-to-date total expenses are $58,230.00. These funds were taken from personal savings and retirement savings account. The company has not received any outside financial assistance. Providing quality products, sound experienceand pure “sweat equity” realized the overall success of this company.

The company is currently receiving revenues from royalty payments, sale of CDs, live concert appearancesand CD duplication work from sub-contractors.

The long-range goal of the company is to expand and relocate to a larger commercial facility. This will occur in two (2) years after increased revenues and growth are enjoyed.

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1.2 Keys to Success

The keys to success in our business are:

To produce quality musical CDs, productsand services that are marketed and promoted on national radio stations, national and international retailersand on the world wide web (The Internet). 

To increase customers and fan base by releasing hit music and products on new artists.

To maintain superior quality and provide excellent service with state-of-the-art equipment.

To create a musical catalogue that consists of various artists and genres of music. This will require the releasing and introduction of new artists and materials to the music industry on a regular and frequent basis.

To target specific markets with proven and effective marketing and promotional strategies.

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2.0 Company Summary

CPA Records is a national record company. The company currently has products that are in various other countries, which qualifies it as being an International Company. The company has a Pressing & Distribution Contract (P & D Deal) with the national distributor, Select-O-Hits, Incorporation, located in Memphis, Tennessee. This contract consists of a term of three (3) years and includes complete manufacturing by Sony's Pressing Plant of all CDs and products that are released by the record label.

CPA Records is also currently receiving national radio airplay on 57 radio stations that is spread across the United States. Additional stations are being added to this list.

CPA Records also provides complete CD manufacturing and CD duplication service to outside customers. We also have state-of-the-art recording studio facilities to meet the needs of any project.

The company's artists that are signed to the record label is currently touring and making live concert appearances to promote the products, servicesand to increase revenues.  

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2.1 Company Locations and Facilities

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3.0  Services

CPA Records is a full service record company. The company has national distribution and national radio airplay.

Although the company has a Pressing & Distribution contract with a national distributor, we also have the equipment and facilities to manufacture and press complete retail ready CD packages for outside customers.

Our CD duplication packages service includes full-colors on all CD media (booklets, tray card, CD Labels), art & graphics design, jewel case, bar codeand shrink-wrapping.

We have state-of-the-art studio recording facilities.

We also promote our own shows and concerts for artists signed to the record label.

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3.1  Competitive Comparison

CPA Records is quickly becoming one of the fastest growing independent record labels in the country. Although we is a small company, the services and the products that we provides are equal or greater than the major record labels.

Our CD duplication services focuses on the local artists and musicians that records their own musicand would like to release a high quality CD on the local level. We realize that there are many talented artists that are ignored by the major record labels. We have also found that there is a very lucrative market for the local artists to sell their CDs in the venues where they perform. Many of the larger CD duplication companies require a minimum order of 1000 CDs. Unfortunately, many of the local musicians and artist's budgets cannot accommodate this high dollar demand. Therefore, we offer affordable quality CD packages of smaller volumes to meet their budgets. We have found that there is a very good market for orders of 50-200 CD packages.

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4.0  Marketing Strategy

Our marketing strategy is to simply produce the best product that we can. We refuse to compromise on quality. We realize that we're in an industry where the product speaks for itselfand will market itself. Many of our customers are repeat customers and help promote our products and services through word-of-mouth.

Being in the entertainment industry, much of our budget is committed to marketing and promotions. A good songand a hit song will sell itself. We, as the record company must make sure that the product gets to the people so that they can make a decision as to if they like itand want to purchase. Marketing and promotions is priority for achieving success in the music industry.

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5.0  Management Summary

The company currently has a total of four employees. AL McDaniel is the founder.

The staff is listed as follows:

AL McDaniel, CEO / President 

Gerri McDaniel, Vice-President 

Kenn Akins, Chief Operations Officer (COO) 

Sax Kari, Director of Marketing & Promotions

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5.1  Management Team

AL McDaniel, President / CEO, recently retired from the U. S. Government with twenty-five years of service. He served over nine years with the United States Air Forceand over fifteen years with the United States Postal Service. The last 12 years of his Postal Service career was in Postal Management. During his years with the government, he has spent time in Europe, Southeast Asia, the Pacific Islandsand throughout the Continental United States. AL Retired early from the Postal service to pursue his very promising musical career. In the interim, he founded the companies of Coffee's Productions & Associates, that also includes, CPA Recordsand CPA Music Publishing Company. In January of year 2000, AL McDaniel released his first CD titled, AL McDaniel & NU Believers, "A Message To Deliver." This debut CD did very well on the national radio charts and secured a Pressing and Distribution contract  with a national distributor. In August of year 2000, AL McDaniel released his second CD, a variety music CD, titled "COFFE" Performing The Most Requested Greatest Oldies. AL has just completed his third CD that is a follow-up gospel CD titled, AL McDaniel & Malak, "Be Prayed UP." This CD is scheduled to be released on February 5, 2001and is expected to be a great success.

Gerri McDaniel, Vice-President, is also the wife and most loyal supporter of AL McDaniel. Gerri maintains a very effective and supportive role behind the scene and assists in various positions of the companies. Gerri McDaniel has over twenty years in the Insurance Industry. She has a very strong administrative background.

Kenn Akins, Chief Operations Officer (COO), actively assists in the company's daily affairs and operations. Kenn Is AL McDaniel's right-hand-man at CPA Recordsand is also the personal manager of, AL McDaniel, the recording artist. Kenn Akins is also the president of his own company, Malak Christians Productions. He also is a record producer, musician, engineerand have worked with many artists. Kenn Akins is currently employed as a law enforcement officer with over twenty-two years experience.

Sax Kari, Director, Marketing & Promotions, is a true pioneer in the music industry. Sax Kari has over sixty years of experience in the music industry. He has performed with many of the great pioneers such as Duke Ellington, Louis Armstrong, Nat Adderley, Cannon Ball Adderley, Bobby Caldwell, K.C. & The Sunshine Band, Aretha Franklinand many others. He has directly contributed to the success of many artists’ careers. He is known as one of the greatest songwriters, composers, producersand arrangers of all time. He has over three hundred songs that have been published in BMI. One of the songs that he wrote, "I Wish Someone Would Care," was recently placed in the archives of The Smithsonian Institute. 

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5.2  Personnel Plan

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6.0  Financial Plan

The company has laid all the groundwork and the foundation to explode to a much higher income level. Now that we currently have two CDs on the market and on the brink of releasing a third, we are in a very good position to incur huge profits. All it takes is for one of the songs on either of the CDs to do fairly welland we could receive over-night financial wealth. With the pressing & distribution contract that we currently have, financial potential is unlimited. This contract (3 years) guarantees CPA Records $7.00 per CDs sold. Being that this contract is with a national distributorand that the product will be distributed to retailers nationally and also on the Internet, the potential sales could skyrocket with a good song. With effective marketing and promotions, 250,000 copies of CDs are not unrealistic (250,000 x $7.00 =$1,750,000.00).

Prior to getting the national distribution with retailers, the company has been operating off of revenues from local CD sales, local concerts and showsand CD duplication business from outside customers.

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6.1  Break-even Analysis

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6.2  Projected Profit and Loss

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6.3  Projected Cash Flow

We expect to manage cash flow over the next three years simply by the growth of the cash flow of the business.  The business is currently generating more than enough cash flow to cover all of its expenses. 

We are now able to meet our budget from the concert appearances and live showsand from income from the CD duplication from outside customers.

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6.4  Projected Balance Sheet

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