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Music Business Plan

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Hedvige Céline September 7, 2020 Business Plan

Unless you plan to run your business for your entire life, you will need a plan of succession. If you are the only person who can run and operate your company, it is doomed to fail when you can no longer run it. Create a plan that will spell out what steps will be taken to either sell your company or hand it over to another manager. Develop a system that allows your business to be run without you. An operations manual that details the key components of running your company is the first step in succession planning.

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You should also be aware of what NOT to put in your business plan. The issue of future forecasts is a contentious one. While it’s all very well attempting to make future forecasts, it’s difficult to predict too far ahead. What you need is to look to the short-term future and then produce your plan accordingly. As the business plan then continues, you can modify the content as and when it’s necessary. Long-term planning, however, will only prove to be a pointless exercise.

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On the subject of finance, you need to produce realistic financial details. How much money will the business require? What are the expenses required? How much tax will you need to pay? What are the profit margins? Do you stand a good chance of achieving these sums, and how? Finance plans should include income statements, cash-flow statements, balance sheets and profit analysis. This should form a big part of your business plan, in order to convince the vendor or bank manager of your credibility.

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There is no hard and fast rule for where or how you should add these kind of details, but using them will improve your credibility as a company. You should also pay attention to your writing style. There is nothing to be gained by using fancy vocabulary or flowery language. In fact, such writing may cause your audience to lose sight of your business. Instead, you should write clearly and to the point so potential investors have a clear understanding of how you run your business.

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Thoroughly cover your business’ market. Talk about your industry and use specific details to support your statements. Details like industry size, growth rate and customer group will help you showcase your business. Include as many details as possible. Do not fill this section with generalized information. Make sure it is industry and business specific.

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To communicate this understanding to investors, you should try to provide sufficient detail about your business to demonstrate your knowledge. For example, you could write something like this: ”According to the ABC Trade Association, profit margins for our industry average around 25%. With the procedures we have put in place, our business can achieve 30% margins due to the increase in our operational efficiency.”

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