TABLE OF CONTENTS

1. Introduction

2. Executive summary

3. Industry analysis

4. Description of venture

15

5. Operations plan

20

6. Marketing plan

22

7. Organizational plan

26

8. Assessment of Risk

31

9. Financial Plan

34

10. Appendix

42

INTRODUCTION

Revolutions recording studio

52-C, Second floor, Mohammed Ali Society, Karachi
Telephone: 021- 4381486

Co-owners:
Wasiq Bing Haris
Sara Hassan
Sama Taqi
Irsa Faruqi
Description of Business
Revolutions recording studio will provide high quality sound along with multiple services
for anyone who requires professional sound production, comfortable recording
environment, creative sounds, fruitful recordings or even a budget friendly production.
The studio offers up to date equipment along with adequate recording area with its
professionally sound proofed environment. The studio holds two vocal booths well
equipped for individual/group recording sessions and a full kitted drum set. The services
offered by the studio include professionally mixed and mastered recordings with or
without live drums, live session recordings, commercial sound productions,
orchestral/soundtrack, choir and naat or quranic recitation recordings. The studio will be
well equipped for sound digitization and will be operated by a professional crew headed
by an experienced musician/sound engineer. The services offered vary in terms of price
and are either contracted or paid up front.

Statement of finance
Initial investment requires a sum of Rs. 20, 00,000 which will be evenly contributed by
the co-owners. The amount is targeted towards the office area renovation and fixtures
along with the equipment required for the operation. Moreover the investment will also
cover the marketing plan and the backup source of funds.
Confidentiality report
This document is confidential and is the sole property of the co-owners listed above and
is intended for use by the persons to whom it is transmitted. Reproduction of any sort or
disclosure of any of its contents without prior written approval of the company is
prohibited.

EXECUTIVE SUMMARY

Revolutions recording studio offers high quality recording services to both musicians and
businessmen, providing them with the opportunity to acquire a professional audio
production service that best caters to their projects with top of the line advanced audio
technology at their convenience.
Our clients are all those who have a knack for singings, playing or creating music and
marketers looking for creative audio commercial productions. Our clients are all those
who require any sound to be digitized into professional audio.
The Pakistani media industry is rapidly growing and in the past few years all that are
remotely linked to media have grown with it. The music industry has achieved quite a bit
since the 90s but even today, it has been said to be lacking 20 years in both technology
and the process of utilizing this technology. We will help in contributing the relevant mix
needed to bring the Pakistani music industry to international standards with our high
quality equipment, professionally trained and experienced production crew and a well
equipped and well constructed recording studio.
Our market research has shown that Karachi is the hub of major music productions but
because of the lack of professional studios, they have to either compensate by using low
quality productions or venturing elsewhere like Islamabad, where the prices soar. We can
also conclude that our major share of the market is being monopolized by two names,
Digital Fidelity in Islamabad and Maymaar studio in Karachi. Both have a benefit of
being recognized over time. This creates a very favorable opportunity as we not only
have amateurs who wish to prove their talents and wish to walk the path of fame but
professionals who have one thing in common, affordable productions. With the
monopoly of two names in the industry, having ourselves being recognized as something
different and better would be difficult but a very promising task. A technologically
inadequate studio versus a very high priced one promises our position as the most
reasonable and professional one.

We will be providing a number of services all independent yet interlinked with one
another. Our services include recordings both inclusive and exclusive of the live drums,
live sessions, orchestral/soundtrack and commercial. This is one of our strengths as no
studio provides such services at prices that we do. With our introduction of the live
session recordings this industry, we will not only boost its growth but will also bring
about a revolution. Revolutions recording studio promises to provide revolutions to the
music industry and strives towards excellence in audio production. Our mission is to
become one of the most well recognized and well reputed recording studios in Pakistan.
Being located at the centre of the city, our location promises to be convenient for both our
employees as well as our customers. We will be situated in Mohammed Ali Society and
will be located on the second floor of the building. The location requires little renovation
but more of construction as we need to construct a professionally sound proofed
recording environment. We will be using top of the line equipment bought from their
respective dealers. The equipment is further discussed at the bottom of this document. Air
conditioning and an alternate source of power are also taken care of as our location
already has multiple spots for the installation of these items.
The co-owners of this business are four in all and will be fully submerged in the business.
They all are well experienced and equipped with the necessary requirements for all tasks
related to the business.
Revolutions recording studio provides the client with a variety of ways to achieve
professional audio production through affordable and reasonable packages. With a
comfortable environment to work in and top of the line equipment complimenting the
efforts of the client, we are sure to attract attention. The producer will head the
productions and will be responsible for the recordings, mixing and mastering of the
various projects. His creative talent and musical experience is an added benefit to the
studio and the client. The recordings will be handed over mastered from the studio in a
hard copy format such as CDs or DVDs.

We are going to utilize a well targeted marketing scheme that will promote our studio to
the market. We will use print media as the main channel of communication as well as our
own public relations to gather clients. As we initiate the business, we will open our doors
with a ceremony that will include a live gig within the confines of the studio and a
separate party for the invitees. People invited to this opening will include industry
specialists, artists, media professionals and government officials.
Our research data projects our sales to breakeven at the fourth year of the business. We
hope to achieve the larger share of the market and create our own monopoly over the
pie. We will target a net income of PKR 18, 90,000 within the first year. This amount is
exclusive of the expenses which will generally put us at a loss in the first year but by the
second year we expect a net income of PKR 37, 00,000 exclusive of the expenses. The
business will break even in the third year to a net income of PKR 2, 069,600.
The four co-owners of the business will receive their shares of the profits with an initial
investment of 20, 00,000.

INDUSTRY ANALYSIS

Future outlook and trends

The music industry and media have been growing ever since the independence of our
great country. The process was dead slow and due to consistent political and
environmental pressures, the industry failed to mature. Fortunately within the last 15
years, the industry has seen a boom in progress. Since music is dependent on media, they
have walked hand in hand as have others such as film making etc.
Currently the industry does not hint towards this boom in progress to stop. Regardless of
the uncertainty present for any industry, media has thus far triumphed. This is true for the
future as well as our neighbor who also shares a huge portion of our industry
unofficially.
Beginning from the 90s where there was only one channel that could promote such
services or artists to the present time, a growing international intervention into the
industry is evident. Thus, this boom in the industry is an important time for us. While
most are either too slow to follow or find themselves inadequate to invest, we should!
From a time where only recordings did the magic to the present, where the artist has to
prove his/her worth, from the outdated and redundant commercials to the creatively
challenged. The trends keep changing but the money and fame does not. These trends
will always work in our favor. As observed from 1999-2004, record productions pierced
through the roof which was followed by a dry period of two years from 2004-2005 in
which the live acts were emphasized. After which from 2006, record productions are
again climbing. This will work in our favor.

10

Analysis of competitors
Since the 90s, many have tried investing in this industry one way or the other. Quite a
few have ventured towards creating recording studios but have failed. The main reason
being their lack of experience or inadequacy towards production. Where most have
failed, some have succeeded. Some like, Mekaal Hassans Digital Fidelity in Islamabad
and Maymaar studio in Karachi. Mekaal Hassan is well known for his musical talents,
both as a producer and a musician. His achievements are numerous which make him a
recognized figure in the music industry. The studio that charges more than what most can
afford is matched by the studio in Karachi which is also headed by a professional
musician who has established himself in the Pakistani music industry as the fastest
guitarist. The studio however, is lacking in adequate recording area and the live drums.
These two amongst other small in-house studios which are not recognized but are spread
out through out the map are our main competition. In Karachi, our main competition is
the Maymaar studio which is situated way out in Gulshan-e-Maymaar.
Within the last 5 years Maymaar studio has provided recording solutions to various
clients but with a single service. The results were varied through out. No constant sale
pattern was observed. A similar pattern was observed with Digital Fidelity but due to
higher pricing the output was minimum but balanced. Again Digital Fidelity was
observed providing a single service which acted as the main source of income to the
business.

11

The graph below represents the competitions sale within the past five years (2002-2007)

Market Segmentation and industry and market forecasts

Revolutions recording studio can generally cater to anyone who requires any sound to be
digitized. Therefore our market is much vaster as compared to our competitors. We cater
to musicians and advertisers, choirs and orchestras, underground artists and anyone who
needs to record either their voice or a sound. Our customer profile is vast due to the
multiple services we provide. All are interlinked yet independent. Time is the key and
effort is the selling point. Based on the clients interest, our producer who heads the
studio programs will intervene in the production. To what extent he participates in the
project, depends on the client and the project.

12

As mentioned earlier, the industry has seen its fair share of trends. The dry runs observed
in 2004 and 2005 clearly show that recordings remained the priority of the market. It may
have observed a trend but it got back on track just as quick as it deviated from it. These
trends will work in our favor as we are not currently in the trend observed in 2004 and
2005. This will work to our advantage as we initiate this business.
The industry has grown and will continue to grow for the coming years. As media grew
since the 90s everything that could be linked to has also grown. Our business venture
will add to the progress and will most certainly give it a push. We will not only increase
the market share but will also be the pioneers in sound production services as what we
offer is not available as yet. As discussed earlier, both small and big scale similar projects
have spawned over the time. Therefore, new ventures will always be observed spawning
in the field and diminishing over the time. Their lack of planning, experience and funding
prove to be the main cause of their downfall.
Within the past three to four years, no stable competitor has been observed. The only
stable competition in the market is the Maymaar studio in Karachi. The industry is
growing but does not have the pioneers and entrepreneurs its seeking for its
advancement. Currently the industry is monopolized by Revolutions like Digital Fidelity
and Maymaar studio and they do not provide adequate recording solutions.
Our services are vast and varied in comparison to our competitors and numerous. We are
introducing top of the line equipment and high quality sound. We will also have Live
drum recording along with a never before introduced, Live session recording. Apart from
these, we will provide choir, orchestral, commercial and soundtrack production and
recordings as well. It is quite clear that we have a much vast approach towards the
industry as opposed to our competitors.
The competitors have seen both declines and inclines in sales over time. This is primarily
because of their major weakness which is the single service they solely depend on. With
our range of services we can achieve a lot more than them. They do however have a

13

competitive advantage of them being in the industry for quite some time and are well
recognized. The industry is not experiencing a dry run at the moment and there fore it can
be concluded that for another three to four years we can expect no change. This of course
is being supported by the research data that was briefly discussed earlier.

14

DESCRIPTION OF VENTURE

15

Mission statement
Revolutions recording studio will provide the artists and businessmen of today the means
to produce high quality, innovative, intriguing and creative audio productions.
Revolutions recording studio is going to revolutionize the Pakistani music industry with
its unique services, latest technology and high quality standards. Our mission is to
become one of the most well recognized and well reputed recording studios in Pakistan.
Currently, the Pakistani music industry is stuck in the 1980s in comparison to the
international music industry. Revolutions recording studio will bring Pakistan to
international standards and will pull it 20 years towards the present. Artists can
experience the professional studio environment with its high quality equipment regardless
of the artist being a professional or an amateur. Did you ever have a band and wanted to
show everyone what you could do but just didnt have the finance? we know the feeling
and thats exactly what Revolutions recording studio provides, an opportunity for anyone
who wants a budget friendly production to break into the market with.
Services
We provide

Recordings

both

with

or

without

live

drums,

live

session,

orchestral/soundtracks, choir and naat/recitations.

Following are the packages being provided along with its description:
Recording including Live drums:
This feature has the drums/percussions recorded live in the studio. Live drum recording
is essential for excellence of an audio track as it enhances the feel of music. Clients
interested in live drums will have to bring their own drummer for the recording. The
recording will be professionally mixed and mastered.

16

Recording exclusive of Live drums

Recording of this type will not have live drums in it and so the clients will be
completely dependent on the producer to come up with drum/percussions track.
Live Sessions
A live session recording requires the artist(s) to be present in the studio with whatever
equipment they require. Clients interested in live sessions will have to book the studio
beforehand and will have to play and record within the timeslot booked. This package
is good for new artists who want to record their albums/ tracks as a demo or even the
final product for further presentations to music labels etc. Recording time comprises of
an hour and after that the recording will be compiled and handed over to the client.
Mixing and mastering of the recording will be done on additional charges.
Commercial sound production
Commercial sound production involves audio designing and recording. This service
will be dynamic as it is completely dependent on the project. The project could require
certain duration of time and degree of creativity. The amount of effort involved in the
project and its creation will determine the cost for the service.
Orchestra/Soundtrack
We provide Orchestra/Soundtrack recording which will have a live recording. An
Orchestra recording session is larger in number as compared to other recording
sessions. Mixing and mastering done will require additional charges.
Naat/Recitations recording
Naat/recitations recording along with mixing and mastering (if needed) will be done as
per client requirement.

17

Choir
Choir recording along with mixing and mastering will be done as per client
requirement.

Since this is a new venture, we will have to register as a partnership firm from a registrar
from court.
Location
Our office will be situated in Mohammed Ali Society which is a ten minutes drive from
Bahadurabad and Tariq road. Mohammed Ali Society and Bahadurabad are considered
the centre of the city and thus our business will be easily accessible and convenient for
most which makes this location very much favorable to our business. As for the building
itself, we are able to acquire a floor within a building situated within the residential area
of Mohammed Ali Society. Our office on the second floor will be rented and the space
requires very little renovation that consists of lights and installation of air conditioning.
This is because of the previous business that operated from within the same space. In
addition the construction of the studio which obviously is very crucial for the business
will also take place. A carefully constructed studio will not pose any threats to the owner
of the building and thus will not be a hindrance to the business.
Equipment
The office equipment consists of the recording equipment which will be purchased by
their respective providers. This consists of the studio monitors, mixer, MIDI, Drum kit,
microphones etc. Apart from the recording equipment, air conditioning will also be
required for which splits will be purchased and a power generator as a backup in case of
power outage which can frequently be experienced in our country.

18

The co-owners of this business all have ample experience in their respective fields. The
producer who will be in charge of the productions and delivering the possible sales is a
well recognized musician as well as a masters degree holder in professional Sound
Engineering. The manager of the business has more than fifteen years of experience in
the professional media environment. The marketing and finance are covered by industry
professionals with adequate resources to carry out the required tasks.

19

OPERATIONS PLAN

20

Revolutions recording studio promises to provide quality service to its clients. Clients
coming to our studio would first be offered the packages we provide and they will have to
choose what they want to go for. We are providing multiple shifts for our clients each up
to 4 hours of time. Eventually the recording would take place under the guidance of the
producer.
The producer will take charge of all the recordings, mixing and mastering of the project.
The producer will also guide our clients and help them come up with better recordings.
After the recordings are done, the producer will require a certain amount of time to mix
and master recordings depending on the projects. The mastered recording will be handed
over to our clients in CDs or DVDs.
We assure our clients a pleasant ambiance and provide the best and the latest equipment
along with highly skilled professionals for our clients recordings.

21

MARKETING PLAN

22

Pricing
After analyzing the pricing strategy of our competitors we have designed our own pricing
frame. We have kept our prices reasonable.
Our prices are totally negotiable depending upon the amount of efforts well be putting in
from our side and our space and equipments used. Our pricing chart is as follows:
Recording excluding Live Drums

PKR 30,000 / track

Recording including Live Drums

PKR 60,000 / track

Live sessions

PKR 30,000 / hour

Orchestra/soundtrack*

PKR 80,000 1, 20000/ track

Choir recording*

PKR 20,000 - 30,000 / track

Naat recording

PKR 20,000 / track

Commercial sound production*

PKR 1, 50000

* Prices are subject to change depending upon the project, the client and the Producer.

Promotion
Revolutions Recording Studio will have to make its place in the market through good
promotions. Since our target market is 90% of music industry and media. Holding an
inauguration ceremony will do magnificent promotion of Revolutions Recording Studio.
We will organize an opening ceremony of Revolutions Recording Studio in which Media
professionals and Government Personnel will be invited. Such event will give its biggest
share in the promotion of the Revolutions Recording Studio. In the opening ceremony
Musicians will be free to play in our studio and use our equipment. It will allow them to
get an idea of how we would be catering them with our latest equipment we will provide
them the highest quality sound recordings, contending with the International standards.

23

Our target market include artists, musicians, advertising companies, people doing naat
and quranic recitations. Artists may include professional ones as well as those who want
to get famous by recording an album in our studio as we assure high quality recordings
which will definitely impress the listeners.
Since Revolutions Recording Studio caters specific target market, our promotion and
advertisement will also be designed just for them. Publishing ads in magazines and
newspapers will play a good role in the promotion of Revolutions recording studio.
Following is the list of magazines and newspapers we will be publishing our ads in,
including costs:
Newspaper:
Dawn (Sunday)

85,000x2
PKR 170 000

7.5x11 inch ad
Magazine:
GT
Mr.
World music
Pink
Spider

PKR 15,000
PKR 30,000
PKR 30,000
PKR 30,000
PKR 20,000

Full page ad
Promotions including the opening ceremony and print media will cost PKR 3, 25000

24

Product Forecast
Since we are offering services which are up to International standards we see our
business growing. We do not have packed competition due to lack of competitors in the
market. We have Digital Fidelity in Islamabad who provides recording facility including
live drums and Maymaar in Karachi who is fulfilling the needs of Karachiittes by doing
simple recordings excluding live drums. To do recordings with live drums people have to
travel, mostly singers, all the way from Karachi to Islamabad to get facilitated by the
recording including live drum service which costs them a lot and also results in the
wastage of time due to traveling. Revolutions recording studio will provide people with
both services plus live sessions, which is a new addition, under one roof along with other
numerous other services as well, at reasonable prices.
We expect to sell approximately three albums per year in the starting years, two albums
recorded excluding live drums and one including comprising of ten tracks.
1 Album Excluding Live drums

30,000 / track
30,000 x 10
300,000 / album
Total

1 Album Including Live drums

300,000
60,000 / track
60,000 x 10
600,000 / album

_________________________________________________
Total expected sales per year

PKR 1200,000

25

ORGANIZATIONAL PLAN

26

Revolutions recording studio will be established as a partnership. There will be four

partners: Wasiq bin Haris, Sara Hassan, Sama Taqi and Irsa Faruqi. Each will assume an
equal ownership in the business.
Each partner has different share of profit. The producer has the maximum share of 40%
and then the Manager, 30% and the finance and marketing managers have an equal share
of 15%. This has been agreed by all the partners. Death or withdrawal of one partner will
not affect the continuity of the business. No partner has the right to transfer his/her
interest without the consent of all the partners. All partners have equal control over the
business. The profits generated will be equally distributed among the partners.

Background and role of partners

Background and role of each four partners are described below.
Wasiq bin Haris
Born in Karachi and is a masters degree holder from SAE, London. He is experienced in
sound engineering and design and has worked on various international projects. He has
also worked as a Musician in Texas for three years providing guitars, vocals, bass to
artists like the cranberries, velvet revolver, REM.
Sara Hassan
Born in Peshawar and has a Masters degree in Adverting. She is well experienced as a
marketing manager and has worked for two well recognized advertising companies in
Karachi. She also has a diploma in project management from PIMS.
Sama Taqi
Born in Lahore and has a marketing degree from Boston College. Her sales and
marketing background is vast and extensive. She recently has worked for an advertising
company in California for 2 years.

27

Irsa Faruqi
Born in Karachi and has a bachelors degree in accounting from LUMS. She has worked
for a large bank in Dubai and has significant experience in the Pakistani market. She has
been a part of the financial management team for various banks like RBS and standard
chartered.

Duties and responsibilities of partners

Wasiq bin Haris Producer Wasiq will work with the clients on their project and will do
all the recording, mixing and mastering required for the project.
Sara Hassan General Administrator and Manager Sara will supervise the daily
operations of the business. This includes the hiring and firing of employees as well as
training and supervising. She will spearhead all transactions, contracts or dealings with
the clients. She will handle all the purchasing required for the studio and will be
responsible for opening and closing the studio each day.
Sama Taqi Marketing and Sales manager Sama will be responsible for creating
promotional activities, monitoring sales and establishing effective strategies for creating
awareness of the business.
Irsa Faruqi Financial Manager Irsa will be responsible for finance, accounting, payroll,
billing, taxes and any other matters related to sales and revenue budgets.

28

Employees of Revolutions recording studio

Below are the employees going to be hired for Revolutions recording studio.
Peon
There will be a peon who will do all the cleaning of the place daily under the supervision
of the manager.
Guard
We will need a guard for the studio for security purposes.

29

Figure 6.1 Organizational structure of Revolutions recording studio

30

ASSESSMENT OF RISK

31

For Assessment of risk, we need to have a SWOT analysis

SWOT analysis
Strength Revolutions recording studio is going to be the first ever proper recording
studio of Pakistan by international standards providing the latest technology and high
quality recordings. The studio will be introducing Live Sessions for the first time in
Pakistan along with orchestra recordings which no studio is offering at present.
Weakness Our weakness is lack of awareness about live sessions, the latest technology
for recording and a proper recording procedure in Pakistan.
Opportunity The biggest opportunity for us is the rapid growth in Media and Music
industry.
Threat Our threat would be if our competitors upgrade their studios or a new
competitor comes forth. Economic failure of the country is the major threat of the
business.
If the risks involved in the business become reality then there are still ways to deal with
that and this will be discussed in the contingency plan. For that which is beyond our
control, will definitely take us into a loss situation and there is a possible chance that the
partners will go bankrupt. There will be no other option but to terminate the business.

32

Contingency Plan
In order to minimize the risks, first we will have to overcome our weakness that is lack of
awareness about new technology and the procedure involved in high quality recordings.
The Marketing manager is responsible for all the promotional activities of the business
including an opening ceremony of the studio inviting all the musicians, media and the
government. All the promotion done will naturally create hype in the country and so if a
new comer comes forth in the competition, we will welcome it and compete against it by
providing better packages at reasonable prices. By that time we would probably have
made our place in the market.
If the existing competitors upgrade their technology, there will definitely be a healthy
competition. The fact that we are located in Karachi is in favor of our success as Karachi
is the main centre of Music and Media.
If the economy of the country fails, then we will relocate our business in India as there is
a dire need of quality there too.
Other risks involve the failure of any of the equipment which can be resolved by
replacing the newer equipment and for that we have kept a separate amount of funds as
backup.
Pakistan is currently facing some power failure situation and if this occurs, our work flow
would be affected massively. For that we will have a generator as a back up power
supply.

33

FINANCIAL PLAN

34

Income Statement
FURNISHING COSTS
Furniture costs
Orchestra chairs
Managers chairs
Guest chairs
Couch
Desk receptionist
Desk producer
Desk for manager

3500x20
12000x2
8000x3
12000x1
10000x1
15000x1
12000x1

Lights
Splits
Generator

800x12
30 000x2

Total

70 000
24 000
24 000
12 000
10 000
15 000
12000

70,000
24,000
24,000
12,000
10,000
15,000
12,000

9600
60 000

9,600
60,000
200,000

= Rs.436 600

436,600

Marketing costs/month
Print add(dawn) sun
Magazine add 5
GT
Mr.
World music
Pink
Spider

85000x2

Total
325 000

=Rs.

170 000
15 000
30 000
30 000
30 000
20 000

295,000

170,000
15,000
30,000
30,000
30,000
20,000

295,000

Renovation
Sound proofing Plywood
Carpeting
(120/sq ft)
Labour
Total
Approx

120x 540

= 193 120
=193 500

86 320
30 000
64 800
12 000

86,320
30,000
64,800
12,000
193,120
193,500

INITIAL INVESTMENT

35

Renovation
193 500
Equipment
400 000
Furnishing
436000
marketing
deposit rent(12 months)
Total

15000x12

193,500
400,000
436,600
30,000
180,000
1,240,100

Extra capital to invest in initial years 800 000

Total requirement

--------------------------------------------------------------------------------------------------EXPENSES per month (1st year)

WAGES
Producer
General Manager
marketing manager
finance manager
Guard
cleaner

40000

40,000
30,000
25000
25000
6,000
2,500

30 000
25 000
25 000
6000
2500

Total wages

128,500

Rent

15 000

Variable Expense
Electricity
Generator fuel
Telephone
Petty expenses
Total expenses/ month for first year
=Rs.85 000
depreciation on equipment

15,000

15 000
10 000
1000
1000

15,000
10,000
1,000
1,000
170500

170,500
60,000
230,500

15% X 400000

Sales for 1st year

By 3rd month10 tracks excluding live drums
After concession
20% i-e 60000 of 300000
after 6th month
10 tracks with live drums

30 000 x10

300 000
10 % of 300000

60 000x10

600 000

300,000
-30000

270,000
600,000

36

After concession
20% i-e 120000 of 600000
live sessions 3 bookings/month

10% of 600000
-60000
30000X3 90000
90000X12

Total
Total expense for the year =
=10 20 000
Marketing expenses

revenue

540,000
1080000
1,890,000

85000x12
230500x12
=

Total

2766000

expenses

2,766,000
295,000

3,061,000

Total loss

-1,171,000

Tax 35%

Due to loss

1,171,000

Net Income/ loss

-------------------------------------------------------------------------------------------------------------------------------------------------------

Sales for 2nd year

5 live sessions /month

30 000x5

150 000

2 albums with live drums

2 album excluding live drums
Naat and recitation
total revenue

60 000x20 1200 000

30000 x 20

150000x12

Total expenses
marketing
total expenses

230500+5000(additional fuel/electricity
expense) 235500 x 12

1,800,000
1,200,000
600000
100,000
3,700,000

2,826,000
295,000
3,121,000

Profit / loss for year

579,000

Tax 35%

202,650

Net Income/ loss

376,350

37

-----------------------------------------------------------------------------------------------------------------------------------------------------------

Sales for 3rd year

By the 2nd or 3rd month
6 live sessions/ month
3 albums including live drums
2 albums excluding live drums
1 jingle
Naat and recitation
2 live drums
Total

Total expenses
marketing

180000 x 12 (for
per year)

30 000x6
600000x3
300000x2

235500+5000 (additional fuel/electricity

expense)240500x12

2,160,000
1,800,000
600,000
200,000
160,000
1,200,000
6,120,000

2,886,000
50,000
2,936,000

Profit / loss for year

3,184,000

Tax 35%

1,114,400

2,069,600
Net Income/ loss
-----------------------------------------------------------------------------------------------------------------------------------------------------------

Sales for 4th year

Expected sales

6,500,000

6,500,000

Total expenses
marketing

240500x12

2,886,000
0
2,886,000

Profit / loss for year

3,614,000

Tax 35%

1,264,900

38

Net Income/ loss

2,349,100

Initial investment
Net income of 4 yrs

1,240,100
3,624,050

1st year
2nd tear
3rd year
4th year
break even in 2 yrs 11 month

-1,171,000
376,350
2,069,600
2,349,100
i.e about 3 years

-794,650
1,274,950
3,624,050
3,624,050

0.528

39

APPENDIX

40

APPENDIX A

41

APPENDIX B
Below will be the map of Revolutions Recording Studio

42

APPENDIX C
Price List

Yamaha MG3214FX 32-Channel, 14-Bus Mixer with Dual EFX = Rs.98,272

Yamaha MSP5S Active Studio Monitor (40 Watts, 1x5 in.) = Rs.22,126

Audio Technica AT3035 Cardioid Condenser Microphone with Shockmount =

Rs.11,766

2 Dynamic Microphones = Rs.2500

Tascam US144 USB 2.0 Audio/MIDI Interface = Rs.19,906

CPU with soft wares and hardware for processing = Rs.60,000

Drum Kit = Rs.50,000

Stands and cables possibly complete package with spares within 50 K = Rs.
3,95,214

Split = Rs. 30,000

al rehman carpets 12mm = Rs.120/sqft

plywood sheet 4ft by 6ft = Rs. 1500

Audimate sound absorption panels 2x3 = Rs. 4400

43

Audimute Peacemaker 2mm Sound Insulation Roll (58sqft) = Rs. 3840

Audimute Peacemaker 2mm Sound Insulation Sheet - 20 Sheets(cover 125sqft) =

Rs. 26880

Audimute Sound Absorption Starter Kit - 14 Long Sheets & 28 Megaclips

(336sqft) = Rs. 27600

Total sound proofing = Rs. 1,96,480

plus labor (NEW) = Rs. 193120

44