kreatif silens

Business Plan

2013

Business Plan

1. The Project2. Mission and Objectives3. Market and Competition4. Strategies and Policies5. Marketing Plan6. Production and Sales7. Human Resources8. Previous Results9. Economic/Financial Plan10. Conclusions

1- The project

kreatif silens

The ideaA unique space for the creative

process of sound: music recording, sound art and research.

Why?

A unique place:– A extremely isolated farm.

Silent, tranquil, motivational place.– The farm has accommodation.– There are no similar spaces currently in

Iceland. More than just a music recording space,

'creative silence' is a larger concept.

The peopleHalldor H Bjarnason

– Audio engineer and sound artist with BSc in Audio Production from SAE Institute.

– 7 years of experience within the music industry.

– 3 years of experience managing his own business.

– Experience with teaching professional audio at university level.

Expectations

Income expectatations:– 40-52 clients per year.– € 72.756 first year income.

Income factors:– Rent of creative space– Rent of cottages– Relative webpage advertsisment– Fundings:

• Innovative

• Social/local community

1 2 365,000.00

70,000.00

75,000.00

80,000.00

85,000.00

90,000.00

YEAR 1 YEAR 2 YEAR 3

2- Mission & Objectives

kreatif silens

VisionThe long term vision is that 'kreatif silens'will attract international musicians and artistsbecause of the uniqness of the place.

'creative silence' will become a recognized name and a place that artists will travel to from over the world because of the isolation, inspiration and tranquility.

MissionInital development of the space.- Create a knowledge of the space.

- Share information about the space online and with people related to music and sound art.

- Get the word out that there is a space available specifically directed to specific artists and musicians.

- In the first year we expect 10-20 musicians and artists to use the creative recording and investigation space. These artists will pay for the creative space as well as accommodation.

Values Quality:

– The place.– Personal service and attention to the

client. Specific services:

– Space with or without engineer.– Space for different sound work and

research.– Space with unique accommodation.

The sound of the place itself.– A unique base for the creative process.

Objectives short term

Generating knowledge and interest.

- Create and send information packages to established artists and already made connections and spread the word.

- In the first year we expect 10-20 musicians and artists to use the creative recording and investigation space. These artists will pay for the creative space as well as accommodation.

Objectives long term

Long term objectives include reaching a secure status as a desirable space for

international as well as national

artists and musicians.

This recording and creative space will serve as a center for sound art becoming more and more involved in national art events as well as collaborate with international sound artists and organizations.

3- Market & competition

kreatif silens

ClientsOur direct clients:

- Musicians- Sound artists- Sound scholars- Sound researchers

General audience/clients:

The artists that use our services have their own connections and collegues who therefore automatically connect with us.

Actual marketA unique concept in the actual market.- This is one of the strengths of 'keative silens'.

- The current market holds no concept or company that is in detail built in the same way as 'creative silence'.

- Recording studios exist and artistic residencies exist. Sound residencies and sound research centers on the other hand do not.

Small: Island Studios (recording, accommodation)

Medium: Greenhouse Studios (artistic, recording)

Large: SIM Residency (artistic residency, accomodation, working studios)

Long term marketThe long term focus is on the international market. A 3 year marketing plan includes reaching international artists and acquiring a recognized status as an attractive space for musicians and sound artists.

Tendencia

Iceland is a small community and many artists are involved in more than one project.

Musicians especially help each other out with recordings, spaces and other aspects of the process.

The art scene is like that in a city, a collective effort where everyone knows everyone.

Amount of visitors to Iceland is increasing:

5 enseñas dominan el 95% del mercado

Key facts of the future

Demand for a creative space in

Iceland:Travel is becoming cheaper.

Iceland is becoming more recognized internationally

for both its art as well as its nature.

Tourism is increasing fast in Iceland – thus more

airlines are deciding to fly to Iceland – thus traveling

to Iceland becomes easier and therefore its

becoming more accessible for artists.

All in all, artists have more opportunities to travel

and work on their art in an isolated place abroad

such as Iceland.

Internal Key Factors

In only about 5 years there have been formed 3 new artistic residencies in Iceland.

It is increasingly easier to create your own recording studio with software becoming more available as well as the knowledge and know-how being shared thanks to the internet.

The recording and arts scene in Iceland is small, everyone works together making the national scene resemble more that of a city or a town. Competition is not as an important factor when everyone shares information, space and knowledge.

Main competitionIn Iceland the concept of direct competition does not exist. Because of the small scene instead of competing it is common to co-operate and share. Nonetheless there are other organizations that can be considered some sort of competition:

In 2012 SÍM (Association of Icelandic Visual Artists) received 250 international artists from 30 countries to its residency.

This is an organization on a very different level from 'creative silence', being partially funded and aided by governmental departments.

Its size and capability is large but also very general. For sound artists this organization is not fully equipped to offer a recording or investigative space.

Main competitionThe main competition of 'kreatif silens' should be considered to be international. If an artist has the choice to go to one sound studio or another in Iceland it is not really much of a choice or a competition. Choosing between countries is another thing. Our competition are organizations abroad, especially in Europe and Scandinavia that offer similar concepts as 'kreatif silens'. International competition example: STEIM (the Studio for Electro-Instrumental Music) in The Netherlands. (the following is taken from the STEIM website where they offer

studio rental)

Studio 1 – €200 per day:Large, sound-proof studio with adjustable acoustic treatment suitable for medium sized ensembles.Studio 2 – €200 per day:Small, sound-proofed and acoustically treated control room connected to Studio 1. Suitable for small ensembles, mixing, and mastering.Studio 3 – €100 per day:Large non-treated space suitable for practice and performance.Studio 1 and 2 may be rented together for €300 per day and studio rental per hour is also possible.Basic equipment and 21% VAT are included in the prices. Prices may vary when more specific equipment is desired.

steim.org

Competition

What do our competitors have over us?

Experience Equipment Connections Collectiveness

We need time to build up, to start collecting equipment, gain experience, gain friends, make connections and learn.

4- Strategy and politics

kreatif silens

SWOT ANALYSISWeaknessesStrengths

1- Little experience2- Company startup3- Equipment4- Studios

1- Attained equipment2- Attained place/structures3- Attractive project4- Longing to participate5- Previous experience

Threats1- Lack of participation2- Increase of small studios3- Both tourism and audio sectors are still young in Iceland and therefore fragile.

1- No national competition2- National co-operation3- Collective partners4- Still a small concept and a while until the market overflows with similar companies

Oppurtunities

Our 'valor' against the competition

Location and concept are the strongest values 'kreatif silens' has to offer. Focusing on sound art and recordings gives the organization a clear stand withing the

Specializations, service quality, exclusivity, guarantee, professionality

Tendency of the market

What is the tendency of the audience?What is the tendency of the clients?Artists, musicians etc?

The marketing linein the long term

1) The strongest social networks will become our source of updates towards our audience.

2) 'creatif silens' videoblog will show the process of music recordings, use of equipment, creative process, sound artists at work etc.

3) Word-by-mouth. The word spreads quickly when there is something unique out there.

Benefits forpartners/sponsors

Music recording is a rising business and becoming a more open business for anyone to partake in.

Studies furthermore show that, against previous statements by the music industry, music sales are on the rise. So more recordings! The other aspects of 'creatif silens'

allows it to be more than a recording studio. It is a cultural center. A space for artists, scholars and researchers within the field of sound and audio.

Additionaly there are also social benefits of sponsoring cultural companies and organizations.

Why should anyone invest in our company?

5- Marketing plan

kreatif silens

Product Policy

Personal services: Pack “Weekend Music Recording”: 25% dto.

– Objective: Interest bands in coming to record

– Includes an audio engineer and possibly a production team.

Special week rates:Week rates calculate 20% discount of normal price.

Price PolicyThe inical price policy is designed and calculated according to market similarities. Location, isolation and unique factors of the space are then taken into account to detail the prices further. The prices are at market level or below, since this space plans on receiving additional funds from the tourism business at the same location.

Communication and Sales

Sales strengthsPersonal communication with client

Uniqness in market

Atención Personal al usuario privado

General promotion: Internet

Social networks (Facebook, Twitter, etc.)

Local promotion (spreading the word)

6- Sales Plan

kreatif silens

Sales Plan

Sales Predictions- 1 year plan -

Ventas/Prestación de servicios 72,756.00 100.0%

Subvenciones a la explotación 0.00 0.0%

TOTAL INGRESOS 72,756.00 100.0%

GASTOS

Compras/Trabajos de otras empresas 0.00 0.0%

Variación de existencias 0.00 0.0%

Servicios externos 20,640.00 28.4%

Tributos 7,880.66 10.8%

Gastos de personal 14,832.00 20.4%

Gastos financieros 1,356.06 1.9%

Amortizaciones 4,405.29 6.1%

Provisiones 0.00 0.0%

TOTAL GASTOS 49,114.01 67.5%

Sales Predictions- 3 year plan -

INGRESOS

Ventas/Prestación de servicios 72,756.00 100.0% 80,031.60 100.0% 87,307.20 100.0%

Subvenciones a la explotación 0.00 0.0% 0.00 0.0% 0.00 0.0%

TOTAL INGRESOS 72,756.00 100.0% 80,031.60 100.0% 87,307.20 100.0%

GASTOS

Compras/Trabajos de otras empresas 0.00 0.0% 0.00 0.0% 0.00 0.0%

Variación de existencias 0.00 0.0% 0.00 0.0% 0.00 0.0%

Servicios externos 20,640.00 28.4% 20,640.00 25.8% 20,640.00 23.6%

Tributos 7,880.66 10.8% 9,770.32 12.2% 11,716.01 13.4%

Gastos de personal 14,832.00 20.4% 14,832.00 18.5% 14,832.00 17.0%

Gastos financieros 1,356.06 1.9% 1,073.04 1.3% 781.40 0.9%

Amortizaciones 4,405.29 6.1% 4,405.29 5.5% 4,189.77 4.8%

Provisiones 0.00 0.0% 0.00 0.0% 0.00 0.0%

TOTAL GASTOS 49,114.01 67.5% 50,720.64 63.4% 52,159.18 59.7%

7- Human Resources

kreatif silens

Key people/management

Halldor Bjarnason – Project director, mixing/recording engineer

– 7 years in-sector experience– 3 years own company owner

Hired contractors:

Viktor Smári – Mixing/recording engineer

– 7 years in sector experience– Life long musician

Jóhann Kulp – Web programming, webdesign

Arnar Helgi – Mastering engineer

Human resources plan

Halldór Bjarnason - director

Viktor Smári – recording/mixing engineerJóhann Kúlp - website

Arnar Helgi – mastering engineerInvited workshop hosts

8- Previous Results

kreatif silens

Umbral Rentabilidad

2013 – 4,092.83 €2014 – 4,226.72 €2015 – 4,346.60 €

1st Year ResultsFirst year sales:

First 6 months6,063.006,063.006,063.006,063.006,063.006,063.00

Half year total: 36,378.00

Second 6 months6,063.006,063.006,063.006,063.006,063.006,063.00

Total:72,756.00

3 Year ResultsVentas/Prestación de servicios

72,756.00 100.0% 80,031.60 100.0% 87,307.20 100.0%

RESULTADO 23,641.99 32.5% 29,310.96 36.6% 35,148.02 40.3%

YEAR 1 YEAR 2 YEAR 3

Previsional Balance

Tesorería Explotación

Inversión progresiva y acorde al desarrolllo

PRIMER EJERCICIO FORMAS DE COBRO Y PAGO CONTADO

COBRO 100%

100%

PAGO 100%

100%

9- Plan de Financiación

kreatif silens

Investment Plan

Inversión progresiva y acorde al desarrolllo

Financing Plan

Financing needed

Netto Actual Value

10- Conclutions

kreatif silens

OpportunityCreate a company and a project that currently does not exist in Iceland.

Create something innovative; the connection between the artistic project and the tourism project.

The artistic project does not only have to count on itself to survive:The location helps

and the tourism business helps.

RiskThe tourism business in Iceland relies heavily on foreign travelers, if that should fail (for several reasons) then the business experiences a crisis.

The music industry as well as the arts industry in Iceland is small on an international level but big in Iceland.

This company works with fragile sectors but innovative and strong at the same time.

Strong Points

No national direct competition; there is no recording space directed at artists, scholars and researchers as well as musicians, all within the field of sound.

Fljótstunga farm is in constant development as an artistic space and becoming more recognized as

such. The tourism business there is growing, each year, creating a funding for the artistic project.

Rentabilidad

SegurityThe tourism in Iceland is growing fast

Fljótstunga Travel Farm is an old and established business that will fund the

project of a creative sound space.

The demand exists for this specific space, the clients exist. Additionally, fundings for the artists, to use the space, also exist. Creative sound

studio+ tourism farm= Good investment

Thank you for reading.

Contact:Halldór Heiðar Bjarnason

E-mail: hhbjarnason@gmail.com

'kreatif silens'- a space for the creative process of sound