Mali.

Music & Art Labs International

143 Bedford Avenue
Brooklyn NY 10026
212.348.4343

copy.one.
12.01.08.

.all information in the proceeding documents is confidential.

Table of Contents.

I. Executive Summary.

II. Industry. Target Market. Competitive Analysis.

III. Company Description.

IV. Product - Service Plan.

V. Marketing Plan.

VI. Operations & Development.

VII. Management Team.

VIII. Critical Risks.

IX. Offering.

X. Financial Plan.
Executive Summary.

The music industry basically sucks. Every musician will tell

you that, even if they haven’t been lucky enough to “Get
Signed” (One of the most tainted statements ever to cross
the lips of an artist). See the predicament yet? We do. There
exists a catch 22 in the industry. The musician (lets use the
fictional name “Amazon Princess on Wall Street”) doesn’t
want to become the muse of corporate giant the men and
women who have no idea what real music has become since
the Beatles, so they want to make every musician into the
next Beatles. Which in turn will create a serious gap between
the artist’s intention and what people get to hear, but there
was a reason why this happened….because the music
industry jumps on the bandwagon of the underground music
scene, this dictates the market’s demand. Well we will
already be there.

Here’s the catch, independent labels failed and the majors

now own them, if they are lucky enough to have survived at
all. Scenario number two; a band was smart enough/lucky
enough to do it completely on their own. The bands that
were smart/lucky enough to do it on their own were able to
book gigs, design or have designed marketing materials for
them, etc. but not all bands have all of the artistic talent,
networking skills, or ability to record well. So they need some
help, but not the impersonal generic help of corporate
infrastructure. What these bands need is the help that is
tailored to their personal artistic integrities. We believe that
the business of every musician should be an art that is
conducive to their own.
Do you know anyone without a Myspace, Facebook, or some
sort of personal PR tool? Do you know anyone (under the age
of 30) that doesn’t know how to use Photoshop? These
things have given every person a space, and the proper tools
to create a persona, a style, and a freedom to do with it what
they please. People now can do the shit the music industry,
and agencies have been doing for years. This is why we are
seeing such an increase in freelance workers in the United
States and Europe. And we wonder why the music industry
has not changed? Perhaps “Amazon Princess on Wall Street”
hasn’t the slightest idea how to book a tour, or get their
music into digital distribution. That’s where we come in, we
won’t do everything just what they need.

This discrepancy exists in all markets with a similar

structure; it’s just more visible in the music industry because
of its size, structure and the amount of money involved. In
the following documents you will find out more about the
previously discussed sentiments, our market, our customer,
our employees, our friends, and most of all how beneficial
we will be to creating the evolution everyone is looking for in
this age of entertainment and technology.
Industry. Target Market. Competitive Analysis.

Market Segmentation
Our Snuggle Spot

Our target market is clientele that needs creative services

but don’t want to be owned, there are options to pay
monthly or percentages on monthly profits but it is not long
term and is a service-to-service commitment. We live in an
ever-changing culture and we want our clients to feel as
though they can ever-change along with that. Our focus is
on the following projected clientele profile examples:

1. Musicians who need press photos done professionally,

but have a guy of their own for web-development.
2. Artists who may need a PA for an instillation, and a
gallery book for an upcoming show.
3. Corporations that want to tap a new market for a
“Hip” product line and have no idea what is going on in
that environment.
Competitive Analysis
We Ain’t Scared

Main competitors include the following:

1. Record Labels
2. Advertising Agencies
3. Freelancers
4. Artist Agencies

This is a lot of competition, but what makes Mali stand apart

is that we are not working against these companies and
people we are working with them. This is why we do not
always work in house we also outsource which in return
generates new business for us when a company needs
something done that they can not do. We do offer an
incentive program for referrals as well as discounts for
business exchange.

Competitive Edge

What Makes Us Awesome

We are no bullshit. We are here to alleviate the bullshit we

are picky and if we don’t believe in what your doing we wont
participate in your business and will refund any time you
have invested in us.

We offer a non-threatening atmosphere and we are not

looking for anything from our customers other than a sweet
tooth for our work. We also offer an educational atmosphere
to broaden our client’s perspective on not only their industry
but also all of those, which are interconnected. Through our
lounge style, open door, store front in which anyone can
come in listen to music.
Mali is involved heavily in promoting community awareness
all over the world and donates 1% of our bottom line to the
arts in each city we work with, as well as participating in and
creating many community outreach programs.

We believe in collective creativity, no one creates alone we

are all inspired by those and that around us. So Mali is here
to support your vision by offering you ours.

Company Description.

Our Mission
To Divide and Conquer

Mali is a marketing and media firm, which exists to fill the

niche that has been left by the collapse of record labels and
the unnecessary excess of agencies. We are specifically
geared toward musicians, artists, and unconventional
businesses that are seeking to market themselves in any
form of media, public relations, or creative problem solving.
Mali’s marketing mission is to reach people on three levels:
sensory overload and synesthesia, time sensitivity and trend
watching, and the warm and fuzzy feeling. We have in-
house specialists as well as networking specialists that work
with other media gurus around the world, who might just be
better at something than we are, but you as a client would
never know that so it’s part of our job to “make it fit”. So we
outsource and we procreate creativity. All of this paired with
an ambiance filled social setting, in which we selflessly use
to promote our friend’s, customers, and associate’s creative
abilities all while sipping on a Heineken.

Keys To Success
What Makes Us Tick

Hungry, Thirsty, Bored, Ambitious, Creative?

Sit, listen to music, sip a cocktail, learn about the newest

artsy shit….
The possibilities are endless; we are a haven for the seeker.

So you want more than just a one night stand, then we’ll sit
down and talk about meeting our parents and get you
kicking on a television commercial, album, website –
whatever fulfills your need, but we need to know what your
looking for in this relationship.

We love you, you love us, and it is a beautiful thing.

Product – Service Plan.

Services.
1.Focus
Choose one or all three
Locally, Nationally, Internationally

2.Consultations

Assessment for Specific needs

Follow ups depending on services enrolled

3.Market Analysis

4.Graphic Design Needs

Gallery Book/Artist Statements

Press Kits/EPK
Fliers
Logos
Album Art
Merchandise
Print Press
Magazine
Billboard
Newspaper
Brochures/Hand Held
Business Cards
Artist Prints

5.Copywriting

“Insert something Witty here…”

6.Video/Film

Commercials
Podcasts
Interviews
Events
Concerts
Doc. Footage
Bios
Music Videos
Special Needs
7.Photo

Studio
People
Objects
On Location
Event
Production
Commercial

8.Web Design and Upkeep

9.Web Marketing

Alternative Web
Social Networks
Media Promotion Networks
Professional Networks

10.Recording

Work with in house producer

Work with a partnering Studio/Producer
Mixing and Mastering

11. Project Management

Booking
Tour Management
Recommended Press Push Before and After
Scheduling
Focus on Product or Department Development
Mali Personnel to come in “refocus and reorganize”

Example of One Segment

Income Per Musician
Album sales
Downloads
Royalties
Live Shows
Radio Play
Merchandise
Soundtrack/Scoring

Expenses Per Musician

Website and Updates
Web Marketing
Cost of Production
Instruments
Studio Musicians
Producer
Mixing
Mastering
Engineer
Studio Time
Practice Space
Distribution
Touring Costs
Road Crew
Management
Lighting Crew
Sound Crew
Design
Printing
Shipping
Banking Fees
Copyrights
Dues/Publications/References
Insurance

The chart above shows examples of a musician’s

income and expenses.

Marketing Plan.
Sales Strategy
Ya Can’t Bullshit a Bullshitter

We will focus Mali’s advertising in publications that we work

with to hit our demographic of musicians and artists, as well
as working through freelancers and agencies.

Word of mouth accompanied with networking is a large

component to this industry, which is why we will be
employing professionals to be constantly chit chatting.

Our in house publications, as well as the media nerds we

employ to overload the internet with code and pretty
pictures will be great for our shameless self-promotion and
generating new clientele.

Another asset that we have is that people like us, they like
to hang out eat drink and entertain where we work. So we
never get bored with new friends that have an endless
babble of new ventures and brainchildren.
Operations & Development Plan.
Team.
Receptionist/Hostess
Receptionist/Hostess
Rest. Crew: Server
Rest. Crew: Server
Rest. Crew: Server
Rest. Crew: Server
Rest. Crew: Bartender
Rest. Crew: Bartender
Rest. Crew: Bartender
Rest. Crew: Bartender
Rest. Crew
Rest. Crew
Rest. Crew
Copywriter
Web Designer
Database Designer
Animation and 3D Graphics
Videographer
Videographers Assistant/Technician
Photographers Assistant/Technician
Photographer
Photographer
Creative Director
Art Director
Art Director
Art Director
PR Field Reps + Commission
PR Field Reps + Commission
Market Research
Sales Reps + Commission
Project Manager
Project Manager
Event Planner
Booking/Tour Manager
Image Consultant
Finance: Accountant
Finance: Account Manager
Finance: Account Manager
Finance: Account Manager
Technical Production
Technical Production
Producer/Recording Engineer
Distribution Specialist
Contracted Work-Freelancers
Club Manager/Entertainment Manager
Office Manager/CEO

Critical Risks.

People could hate us. But we are really cute…so that is

highly unlikely.
Offering.

Start up costs
Lease/Security Dep. 100,000
Liability Insurance 10,000
Equipment:
Computers/PDA's/Printers 1,000,000
Desks/Tables/Chairs/Couches/Bar/BackBar 1,000,000
Signage 75,000
Kitchen/Bar 250,000
Remodeling (structural) 500,000
Resurfacing (Cosmetic) 100,000
Security/Safety Systems/Equipment 10,000
Accounting 5,000
Attorney/Legal 5,000
Permits 1,000
Startup Wages/Relocation Expenses 100,000
Advertising/Promo (InHouse) 1,000
Web Development (In House) 1,000
Print Promo/Logo Branding (Brochures, Cards,
Menus.) 10,000
Inventory: Paper/Ink… 100,000
Utilities 50,000
SoundSystem 100,000
Telephone System 250
Wireless System 1,000
Database (In House) 2,000
Dues and Subscriptions 500
Shipment/Deliveries 20,000

Total 3,441,750
Monthly Costs.

FIXED
Rent 10,000
Salaries 4,465,000
Benefits 500,000
Insurance 100,000
Taxes 100,000

VARIABLE
Travel 100,000
Events 10,000
Technology 500,000
Bar. Rest. Stock 10,000
Office Materials 5,000
Utilities 5,000
Startup Capital for new accounts 100,000
Startup Costs percentage for year 1 300,000

Total 5,895,000
Financial Plan.
Income Projections.
Cost to Projected Month 1 income from
Service customer Service
Consultations
Meeting 250 1 hour 5,000
Market Analysis
Assessments 150xhr 2,500
Follow Ups 100xhr 2,000

Design 300xHR 300,000

Copywriting 200XHR 200,000

Web Design 300xHR 300,000

Videography
TV Commercial 1,000,000 1,000,000
Event 250,000 500,000
Documentary 500,000 500,000
Music Videos 500,000 500,000
Bios/Interveiws 50,000 50,000
Photography
In-House Studio Objects 100 xHR 100,000
In-House Studio People 300 xHR 300,000
On-Location 400 xHR 400,000
Event 600 xHR 6,000
Commercial 1,000 xHR 1,000,000
Distribution 100 per venue 10,000
Press Push 80 xHR 200,000
Networking Specialist 300xday 50,000
PR Field Rep. 300xday 50,000

Tour management 200xday 2,800

Tour booking 85xHR 10,000
Event
Planning/Management 100 xHR 100,000

Album Recording 100,000+ 1,000,000

Producer 100,000 2,000,000
Mixing/Mastering 75,000 500,000

Printing 10% of job cost 100,000

Shipping 10% of job cost 50,000

PA 100xday 500,000
Management 300xday 500,000

Total 10,238,300

Expected growth projections:

Potential Customers 2009 2010 2011

Musicians 20% 30% 35%
Artists 5% 10% 10%
Corporations 5% 10% 15%
Business Exchanges 15% 30% 45%

These projections are based on our sales and trend analysis

for the markets in New York paired with the types of services
provided, location within New York and the expected
fluctuations within our competitor’s niche markets, paired
with a changing economy.

The market is experiencing a serious period of change,

which is leaving a lot of room for a new option for its
customers.