BEEDEEONSTREETS BUSINESS PLAN

BEEDEEONSTREETS ENTERTAINMENT

101 YAYAABATAN ROAD OGBA IKEJA LAGOS STATE

HOTLINES: 08168555497, 07038660160, 08034329536

EMAIL: adeyemibeedee0101@gmail.com

Blog: beedeeonstreets.blogspot.com

BEEDEEONSTREETS BUSINESS PLAN

The company plans to produce artists and establishment of record labels. These labels cover a broad spectrum of the music industry, from Jazz, to Contemporary Christian music, Rock music. The company already has established ties to various artists in the industry, and plans to search for new artists to market and produce.

Ø MISSION STATEMENT

Ø EXECUTIVE SUMMARY

Ø COMPANY DESCRIPTION

Ø INDUSTRY ANALYSIS

Ø MARKETING & PROMOTION

Ø THE MANAGEMENT TEAM

Ø THE FINANCIAL PLAN

MISSION STATEMENT

Beedeeeonstreets Entertainment will capitalize on the growing entertainment market across the world through the production and promotion of high quality entertainment. Located across the lent and breath of Nigeria, Lagos, PH and Abuja, the company will become highly profitable through the sale of pre-recorded music product (compact discs), in addition to revenues generated from ancillary profit centers. Beedeeeonstreets Entertainment will own and control the masters (master copies), copyrights and licenses of its product, which will enable Entertainment Company to create immediate revenue streams while growing its music catalog into a multi-million Naira asset.

EXECUTIVE SUMMARY

Beedeeeonstreets Entertainment we formed an experienced, award-winning management team. As artists, producers and executives, projects produced by these individuals will earned the company nominations for Awards and will maintain experience in both the business and creative sides of record company; this will enable Beedeeeonstreets Entertainment to generate profitable revenue.

Beedeeeonstreets Entertainment will maintain strong affiliations in the music industry. Through relationships with industry legends such as YBNL, HYPERTEK, STAR BOY and MARVIN Record. This provides Beedeeeonstreets Entertainment the opportunity to generate revenue from the largest music.

The company we established four categories to handle a variety of music including Pop, Rhythm & Blues, Alternative Rock, Jazz, Gospel, Urban and New Adult Contemporary Beedeeeonstreets Entertainment we compiled an exciting and diverse roster of recording artists. Selected within the group, these highly talented veteran and debuting artists will enable Beedeeeonstreets Entertainment to quickly penetrate the music marketplace.

Beedeeeonstreets Entertainment will distinguish itself from other independent record companies through its marketing and promotional plan. Intense, calculated and relentless promotional campaigns will enable Beedeeeonstreets Entertainment to earn massive revenues through the growing popularity of "singles", as well as, traditional full-length albums Beedeeeonstreets Entertainment will utilize the success of its pre-recorded music to develop profit centers in independent distribution, merchandise and concert promotion.

Beedeeeonstreets Entertainment is seeking #1.6 million in equity investment capital for this exciting company. These funds will be used to: a) establish corporate offices, b) maintain overhead expenses, c) acquire and secure artists, d) fund project production budgets, e) fund multi-faceted marketing and promotion budgets. A staged infusion of capital over the course of the first 10 months of operations will provide Beedeeeonstreets Entertainment with the necessary financial resources. A linked offering composed of common stock, preferred stock and debentures is being offered by Beedeeeonstreets Entertainment.

COMPANY DESCRIPTION

Introduction

Beedeeeonstreets Entertainment. is a multimedia entertainment company which will supply profitable, positive, audio and visual entertainment to a diverse, international consumer group. Beedeeeonstreets Entertainment is committed to wholesome entertainment across the board and firmly believes that quality; palatable entertainment can be realized without compromising commercial appeal.

Beedeeeonstreets Entertainment we distinguishes itself through the commitment it undertakes with each of its artists. Contrasting the typical scenario in which a record company spends more money producing the music than they do in its marketing and promotion, Beedeeeonstreets Entertainment will utilize a stable of experienced and resourceful producers to ensure the highest quality product within established production budgets. This, in conjunction with the financing and expertise necessary to stage intense, relentless marketing campaigns will guarantee the impetus necessary to create "winning" products in the marketplace.

Beedeeeonstreets Entertainment is composed of three internal divisions: Beedeeeonstreets Music, Beedeeeonstreets Video, and Beedeeeonstreets Ancillary. The company will compete and earn revenue immediately through the creation of several lucrative profit centers, beginning with pre-recorded music [compact discs (CDs), enhanced CDs (sound & picture combination), CD Rom, cassette tapes and vinyl albums.] Additional income will be produced from distribution, video, merchandising and concert promotion.

Each of the albums that Beedeeeonstreets Entertainment produces and owns will create valuable short-term streams of revenue. Owning and controlling the rights to each of its albums will enable Beedeeeonstreets Entertainment to grow its music catalog into a valuable asset, one of several-hundred revenue producing titles.

Beedeeeonstreets Music

Beedeeeonstreets Music is Beedeeeonstreets Entertainment's primary thrust for the first operations. This section will Responsible for the cultivation of talented artist and will alsoproduction of pre-recorded music product and its marketing, the success of Beedeeeonstreets Music will lay the groundwork for additional Beedeeeonstreets profit centers.

Beedeeeonstreets Music and its associated labels strive to fully maximize the success and profit potential of each artist. Four groups comprise the company's music division. Each division has been created with a distinct and specialized reputation of its own, and will be responsible for a separate genre of music.

Beedeeeonstreets Music and its associated group will produce and release projects yearly. A second phase consisting of six productions for artist follow-up albums and newly acquired artists will begin.

Recording the Music

Beedeeeonstreets will utilize a variety of independent record producers for the studio production of its projects. Producers will be hired on a project basis. These producers will be paid up-front fees and will also receive royalties (3%) from unit sales. Networks of producers are available to Beedeeeonstreets for the specific genre of music. Additionally, Beedeeeonstreets media manager will ensure the delivery of quality product on budget.

Manufacturing & Distributing

A plethora of options are available to satisfy Beedeeeonstreets requirement for quality manufacturing and reproduction of compact disc, cassettes and videos. Beedeeeonstreets will outsource this function to one of many manufacturing outfits in the industry. These vendors will be selected based upon quality of product, ability to meet delivery deadlines, payment terms, inventory and storage options, as well as price. Several manufacturers that Beedeeeonstreets is currently considering are: Vinon Manufacturers, Ict., and Jpx Manufacturing.

Marketing & Promotion

Beedeeeonstreets goals are to design and provide creative and effective marketing for its artists. As music is being produced in studio, promotion and marketing strategies will be formulated. It is crucial that the marketing plan for each new release is in motion several weeks before the product is completed in studio.

Beedeeeonstreets will employ multifaceted promotional strategies for its product releases including: hiring regional independent record promoters and creating radio promotions, Internet sites, broadcast videos, dance club promotions, in-store/co-op promotions and promotions to the general public through print, video and television mediums.

To support the sales of pre-recorded music, Beedeeeonstreets Video will produce and release music videos for each album released by the company. Existing affiliations in the video sector of the industry allow the company to produce top quality video productions while minimizing budgets. At this stage, music videos will be created for the songs on the album which will be released as "singles", as a prelude to the full album release. Beedeeeonstreets Music will contract with independent record promoters to interface with radio station program directors and music video network directors. Public relations firms will be hired to publicize and promote Beedeeeonstreets recording artists.

Beedeeeonstreets Video

Beedeeeonstreets Video & Television is established initially to support pre-recorded music products through the production of broadcast music videos. Understanding and capitalizing on the close relationship between audio and video entertainment will quickly propel Beedeeeonstreets products in the marketplace.

Broadcast Music Videos

Rivaling radio in terms of the most powerful promotional tool for pre-recorded music sales, broadcast music videos are a crucial instrument to ensuring successful product launches. Beedeeeonstreets will produce two to three music videos for each new project completed by the company. Videos will be created to appeal to the target audience of the particular song.

Beedeeeonstreets we created relationships with several firms for the production of music videos.

Broadcast music videos will be distributed to networks such as AIT, MT, etc. Independent record and video promoters will be hired to gain maximum air time and exposure for company videos and artists. Furthermore, these promoters will work to gain exposure for videos in non-traditional music settings and other public settings.

Merchandising

A lucrative profit center for Beedeeeonstreets, merchandising opportunities will be created upon and around company artists and products in concert venues and retail outlets, alike.

Concert merchandise (t-shirts, sweatshirts, hats, programs, posters, buttons, etc.) is typically sublicensed to a merchandising company specializing in retail operations at large concert venues. Beedeeeonstreets will establish several relationships with merchandise managers involved with many national sports franchises and arenas around the country.

Retail merchandising strategies will be coordinated and planned with the assistance of advertising agencies and public relations firms. The chief objective will be to create alliances with apparel manufacturers for Beedeeeonstreets artists, similar to the manner in which athletic shoe manufacturers attach an athlete's name or image to a particular shoe. Of course, these opportunities will become more readily available as the artist's reputation increases. Nonetheless, Beedeeeonstreets will work to make inroads in this realm early on.

The company will design and release a line of Beedeeeonstreets casual wear, including such items as shirts, hats and jackets. Distribution of these products to music related retail outlets will occur through Beedeeeonstreets pre-recorded music partner. Distribution to mainstream apparel outlets will also be secured.

Concert Promotion

As a related means to increase exposure for the company artists, Beedeeeonstreets will plan and promote several live concert shows a month. Shows will be staged at a variety of major concert venues throughout Nigeria. Revenues will be generated from the sale of tickets, concessions and merchandise. Early on, the company will plan and promote two shows per month. This will allow Beedeeeonstreets the opportunity to attract outside talent. It is anticipated that as this division of the company grows, regional promotion contacts will be established allowing for expansion and increased revenues.

INDUSTRY ANALYSIS

Independent Labels

It has become common practice to classify all but the major labels (those having their own distribution systems) as independent labels. Independent labels have been described by knowledgeable music industry professionals as "the lifeblood of the business." In fact, in 2011independents accounted for over 19.2% of the music industry's market share.

Lacking large budgets for project production and marketing, independent record companies have had to be more resourceful over the years. Such facets of the business as, intense talent scouting (Artist & Repertoire) and grass roots marketing campaigns have been utilized to compete with major record companies. Furthermore, independents cannot rely on the occasional "big hit" record, but rather have established and grown music catalogs to provide streams of revenue.

In growing a music catalog it is imperative to compile a reliable group of artists, who are dedicated to producing quality music. This enables the company to steadily increase the number of unit sales for a particular artist over a two to three album process.

Major recording companies frequently invest in independent labels when confidence in the company's roster and management exists. In these strategic alliances and joint ventures, the larger company may invest money to: a) assist in completing album projects, b) manufacture compact discs and tapes and c) assist with marketing and promotion plans.

Industry Sales Volume in the Nigeria

The Nigeria. Record business, which grossed one billion naira in 2011, exploded to two billion naira in sales by the end of 2014, with a unit volume of 200 million records and cassettes sold. Sales fell sharply over the course of the last six years, mainly due to the declining Nigeria economy and the popularity of piracy. Recent calculations of industry figures indicate more than 4 billion naira in sales and volume of more than350 million units.

MARKETING & PROMOTION

Beedeeeonstreets we formulated a simple but successful approach to market its products. The chief marketing objective for Beedeeeonstreets pre-recorded music, video and programming products centers around the design and implementation of a strategy that will cost-effectively deliver that product to the intended target market.

This will be achieved through a marketing plan consisting of the following tools: publicity, community outreach, advertising, art direction, radio promotion, independent promoters, broadcast music videos, touring, retailer co-op advertising, motion picture tie-ins, alternate distribution outlets, Internet, dance club promotions, mailings & telephone follow-ups.

Marketing Goals & Objectives

Ensure that each project achieves and sustains a "Top Ten" position on industry music charts.

Release and promote four singles and accompanying music videos, in addition to each full length CD/cassette; creating revenue streams for each album project
Utilize Beedeeeonstreets three phase marketing & promotion plan
Hire independent record promoters in each of four separate regions of the Country
Utilize teams of publicists to coordinate print advertisements, and artists' public appearances

Support and assist non-profit organizations, charities, and community programs

Dedicate advertisement space for non-profits on all Beedeeeonstreets products
Tie in Beedeeeonstreets 's recording artists for participation with non-profit organizations
Design and implement music education programs for community youth

Marketing/Promotion Strategy

Considering the onslaught of product released to the music/video market each month (1,200 new releases) worldwide, it is crucial to ensure the visibility of each project. The financial success of an album can be guaranteed through the establishment of proper marketing and promotion budgets. However, without the naira necessary "to win" success is a "crap shoot." With properly established budgets, Beedeeeonstreets Music will generate large streams of profits from each of its projects. The marketing and promotion budget will be divided into twelve to fifteen-month campaigns, each consisting of three phases.

Phase 1 begins with the creation of music videos for approximately three songs from the new album project. Once these have been shot and edited, the first "single" and its video counterpart will be released to the public. At this point independent promoters will canvas radio stations, video networks and dance clubs (depending on the genre of the release) to ensure proper air play for the first single. Within the next six weeks, a second "single" release will be promoted to the public. This strategy will enable Reed to achieve two important outcomes-increasing the number of "singles" that are sold in retail outlets, and building anticipation for the release of the full-length CD/cassette.

Phase 2 concentrates on the publicist, print advertisements and media exposure. Riding the momentum of the "single" releases, the market will be printed to hear and learn more about the artist(s) through articles in both trade and non-trade magazines, as well as radio, television and Internet interviews. Furthermore, the publicist will also be able to create valuable exposure for the charity/non-profit organization that the artist has chosen to assist and promote.

Phase 3 begins with the release of the full-length CD/cassette. This will be accompanied by intense in-store and retailer co-op advertising. Retailer programs will be designed to acquire valuable listening posts, end-cap displays, window/wall posters, point of sale advertisements and co-op advertising in mailers and store circulars. Additionally, the third and fourth "singles" will be released during this phase. The systematic release of "singles" will sustain the artist’s

popularity while increasing and prolonging sales of the full-length album. Furthermore, during Phase 3, the artists will make promotional appearances at clubs, retailers, radio stations and charity events in conjunction with scheduled concerts.

Radio Promotion

Despite the fact that radio no longer possesses the sole influence on record sales, sharing the spotlight now with video resources, it is still a heavyweight medium for record promotion.

With so many changes occurring in the radio/video industries - the sale of radio stations for tens millions, for instance, along with the fragmentation of radio formats and escalating success of video, promoters have been forced to realize that they are in a business and must therefore approach their jobs in a far more business-like manner than is traditional. Promoters are now more concerned about the facts and figures rather than simply trying to impress program directors with the great new song they have to offer.

Major record labels utilize both in-house and independent promoters to assist in the effort to maximize the airplay of a new song or album. An in-house radio promotion staff makes financial sense assuming the company maintains a steady and consistent release schedule to a specific genre or radio format.

Independent Promoters

Beedeeeonstreets Music will utilize the services of outside radio promoters. Known as independents, these promoters have established networks and relationships with radio station program directors. Most independents position themselves and focus within a specific music genre.

Beedeeeonstreets Music will create a network of independents who will be hired to interface with radio stations. Specifically, Beedeeeonstreets Music will create and design goal oriented and incentive based contracts with independent promoters. Measurable criteria will include some of the following: peak chart position obtained number of weeks on the charts on which a specified position was obtained.

Beedeeeonstreets Music's independent promoters will focus their efforts and attention on reporting stations. A reporting station is one that trade papers/magazines and tip sheet publishers telephone each week to learn which recordings were and are planned to be programmed. This new acts, and prolong the chart life of new recordings.

In addition to canvassing radio stations, independent record promoters will also devote substantial time securing airplay for music videos. TV and similar outlets guarantee huge national exposure, just as with radio. Beedeeeonstreets Music will place heavy importance on music videos, considering the national and international reach of these networks. Music videos will offer exposure to those markets presently unexploited.

Information is gathered and tabulated from all around the world. It is presented to the public in the form of a chart which shows such information as current chart position, previous chart position, artist, record label, etc.

Broadcast Music Videos

The promotion of pre-recorded music is inextricably bound to TV related transmissions of music, including conventional TV, cable, pay-cable and direct satellites. Sales are increased immediately when music is linked to visual entertainment, whether the medium is a movie musical, a TV broadcast or a music video. Broadcasts and cable companies now transmit dozens of video shows, and their impact on record sales is clear; videos not only increase record sales, they break

Marketing & Promotion

A sample 12 month campaign for an album released

Broadcast Music Videos	1Videos	#1,650 000
Independent Promoters	1 @6 months	#550, 000
Publicist	4 months	#250,000
Touring/Promotional Travel	4 months	#1,300,000
Print Media	3 months	#450,000
In-Store/Co-op	6 month campaign	#260,000
Promotional CDs/Mailings	4,000 CDs/1,000 Cassettes	#560,000
Total Marketing & Promotion Budget		#5,200000

Touring/Promotional Appearances

Perhaps one of the most effective marketing tools, concerts and promotional appearances are instrumental in "breaking" a new act and creating a loyal fan base. Public relations personnel in conjunction with the artist's management will create and plan these promotional tours which will be directed toward the particular target market. For instance, the artist may make an appearance at a local record store, provide an interview for a radio station, and perform in a concert the same evening.

In addition to the long-term benefit of creating a loyal customer base, Beedeeeonstreets will utilize these opportunities to immediately sell copies of the artist's project, as compact discs and cassettes will be available at merchandise tables at concerts and appearances.

Dance Club Promotion

Dance clubs are effective mediums to test market new recordings. Prior to the commercial release of mainstream singles, the songs will be distributed to clubs to test public response. Beedeeeonstreets will work closely with its independent promoters to establish networks of clubs throughout the country which will be utilized to test new releases. Results from these activities will provide crucial information in a timely fashion, allowing the company to tweak (re-mix) a recording if necessary. Furthermore, Beedeeeonstreets Music expects to increase sales by promoting music videos of new releases to be played in the clubs. Dancers who become surrounded by the club's multiple screens and overpowering sound systems may be stimulated to later walk into a store and purchase a copy of the product (audio or video) to continue enjoying the music at home.

Public Relations

A key piece in the promotion of new product releases is the "creation of mass interest" in the marketplace. This is done in the motion picture industry with sneak previews, interviews with starring actors/actresses and directors, television commercials and print advertisements. The coordination of these activities is the responsibility of the publicist(s).

Beedeeeonstreets will utilize publicists to create the buzz in the marketplace about new projects and artists. Initially, this important function will be outsourced to credible public relations firms, until such time that it is feasible to internalize this position at Beedeeeonstreets. Publicists will arrange and promote appearances and interviews (talk shows, industry publications, mainstream magazines) and create written materials and ad copy about the artist to catch public attention.

Combined with concentrated airplay and print advertisements, the impact created from the publicist's strategy creates the most powerful advertisement, word of mouth. Music buyers who hear the "talk" and hear the music on the radio are more inclined to enter a music store to make a purchase.

Print Advertising

Advertising campaigns will concentrate on the types of exposure that fashion designers have mastered in the realm of advertising. A variety of media will be used including print, broadcast, point-of-sale and direct mail. With a mass consumer product such as music, it is feasible to reach specified target segments by placing advertisements in mass print media-magazines and newspapers. Some advertising will be cooperative with the store and Beedeeeonstreets sharing costs. For example, a print page or media buy that promotes a Beedeeeonstreets product in conjunction with the retailer. Co-op advertising may be paid all or in part by the retailer, who is reimbursed by Reed from a co-op budget determined by the retailer's volume of purchases from the label. To justify the high expense, several Beedeeeonstreets Music releases will be pushed in one, thus pulling down the "cost-per-thousand" expense per release. From time to time, record stores may request that Beedeeeonstreets finance a print media campaign in their area. Beedeeeonstreets will initiate print when trying to coordinate advertising with the promotion of concert appearances by a Beedeeeonstreets artist.

Art Direction

Also a crucial function, proper art direction can greatly enhance the image of a product, lending added power to the promotion and marketing strategies. Responsible for artistic layouts, print advertisements, compact disc design, j-card design, merchandise design and the creation and maintenance of the corporate identity; the creativity displayed by this department plays a key role in positioning and packaging the project to the consumer. Within the first few months of operations, this function will be overseen internally, with many of the specific projects being completed by independent graphic artists. This will minimize Beedeeeonstreets overhead expenses while maintaining the highest level of creativity.

Retailer/Co-op Advertising

Traditional distribution channels into music related retail establishments enable Beedeeeonstreets the opportunity to reach retail outlets throughout the world. Beedeeeonstreets will closely coordinate product launches and utilize the distributor's clout with retailers to design specific strategies for enhancing advertising and marketing presence within retail establishments. These strategies will focus on point-of-sale advertisements, in-store advertising opportunities. print radio and television co-op opportunities.

One such strategy to be implemented once the company has several artists on the market, will be presenting retailers with the opportunity to place an attractive Beedeeeonstreets aisle end-cap display in the establishment. The display is intended to promote four to five artists' compact discs simultaneously.

Beedeeeonstreets will also design other in-store advertisements such as counter-top point-of-sale advertisements, window posters and banners. In addition to listening posts (product displays which allow a potential buyer the opportunity to sample the product prior to purchase), Beedeeeonstreets artists and products will also be advertised in retailer newsletters and bulk promotional mailings to the public.

Alternate Distribution Outlets

Additionally, Beedeeeonstreets will examine the prospect of distributing products through network marketing channels. The recent explosion of network marketing concepts has produced millions of distributors and consumers worldwide, providing an effective means to reach the public. The distribution breadth of individual companies will be evaluated to determine if access can be gained to selected target markets.

Motion Picture Tie-ins

Beedeeeonstreets will submit songs to motion picture studios as an additional means to provide promotional support for company projects. The promotional mileage created from being included on a soundtrack for a major motion picture is enough to assist in moving several hundred-thousand copies of the album.

The Internet

In response to the growing popularity and necessity for a presence on the Internet, Beedeeeonstreets will create and design a web presence for itself. Utilizing the latest web site technology, Beedeeeonstreets web site will be intended to advertise the company, announce and advertise new releases, sell company products and merchandise and offer e-mail communication. Furthermore, utilizing the latest technology, visitors to the web site will be able to sample music clips from Beedeeeonstreets artists. Management has secured a domain name for the site.

Furthermore, Beedeeeonstreets will create space on its web site for each artist signed to the company. Allowing for increased public exposure, the public will be able to learn more about the artist or group. Additionally, space will be provided to promote chosen non-profit organizations and charities through this electronic medium.

Mailings, Telephone Follow-Ups

Beedeeeonstreets independent promoters will mail promotional copies of the product to a large number of radio, cable and TV outlets. Independent promoters have the experience and the established networks to use select mailing lists, ones that include mostly influential stations or stations where the promoters possess person contacts. Mail campaigns will be followed by telephone calls. The success of this kind of telephone follow-up will be based upon the suitability of the recordings mailed, and the already established rapport between our promoters and the radio/TV programmers.

Marketing Summary

The promotion and marketing facets of the record business are vital to Beedeeeonstreets overall success. A quality product is only the first step in the equation for hit records, videos and programming. Beedeeeonstreets will ensure its financial success through consistent and balanced marketing strategies designed to reach desired target markets.

THE MANAGEMENT TEAM

Goals & Objectives

Create a highly organized, productive and efficient organization

Clearly outline specific responsibilities for each position
Provide employees with the necessary autonomy to be productive
Eliminate overlapping job responsibilities
Monitor cost effectiveness and quality of outsourced functions

Provide employees with incentives to maximize performance

Offer employee medical insurance
Institute an employee profit sharing plan
Offer bonuses based on the attainment of specific goals
Create an enjoyable, creative, positive workplace

The strength of Beedeeeonstreets management team will derived from the blend of experience, creativity, savvy and energy. The following individuals who occupy key positions within Beedeeeonstreets we dedicated and prepared to ensure Beedeeeonstreets success and profitability.

Reed Music Operations

The following is a description of the key roles and responsibilities attached to the daily operations of Beedeeeonstreets Music.

The label media managers will be directly responsible for all of the functions within their particular label. Label media manager will solely handle the majority of these functions for their particular label with the assistance of shared administrative staff. As each label grows in terms of sales revenue and the number of recording artists, additional staff will be added to provide necessary support. Wherever possible and feasible, staff will be shared between labels in an effort to minimize unnecessary overhead.

Marketing/Sales

Responsible for selling the company's product to wholesalers and retailers. It develops sales campaigns, determines policies for discounts, special deals and returns, takes orders for product and oversees sales activities on local levels, provides financial assistance to accounts for advertising and oversees billing. The sales department consists of members of a national sales team - senior executives, salespersons and other employees of the branch distribution system. This work is done in-house by small labels or contracts with regional concerns to handle these functions in different parts of the country.

Product Management

This department may also be referred to as "Artist Development". Found in most medium to large record companies, product managers coordinate and oversee all aspects of a current release, including packaging, advertising, tours, publicity, promotion and sales activities. This entails close liaison with personnel from other departments within the label. The object of this department is to oversee the overall career growth of signed artists, giving whatever input necessary for the artist to achieve and/or sustain commercial success.

Publicity

The function of the publicity department is to bring press and other media attention to the artist which will, either directly or indirectly, aid in the sale of records. Inherent in this goal is the continued visibility of the artist in newspapers, magazines, trade publications, on radio and television programs and special industry award shows.

Promotion

Beedeeonstreets will employ an outside promotional staff to seek the greatest possible exposure for artists and products through radio and video air play. Representatives deliver new products to radio stations and closely monitor their play lists to see if their song is being played. The same approach is taken with regard to video outlets. A large part of the success of a record is predicated upon the amount of radio air play it receives. The competition is fierce. As such, a record should not be randomly promoted to radio stations.

Artist Relations

This department has broad responsibilities, which include talent search, contract negotiation, interim artist management and development (unless the artist has other management), tour support and publicity.

Artist & Repertoire

A general breakdown of Artist & Repertoire (A&R) responsibilities include scouting for talent, locating songs, pre-production functions such as providing creative input, scouting producers, planning budgets, etc.; production functions such as reviewing tracks, determining album sequencing of tracks, recommending singles, monitor mastering and manufacturing, creating excitement within the label itself, etc.

Artist & Repertoire Administration/Production Coordinator

This department handles the clerical aspects related to A&R and supervises various administrative activities. These responsibilities include planning and monitoring budgets, examining studio bills, preparing studio reports, ordering references and parts, collecting information for label copy and packaging, monitoring and reporting on contractual options, copyrighting works for a single or album and obtaining mechanical licenses.

Creative Services

This department is primarily responsible for creating and supervising marketing campaigns, including developing marketing concepts, creating and executing graphic art, creating editorial copy and designing "point-of-sales" stimuli posters, banners and window displays, etc.

THE FINANCIAL PLAN

Reed has developed a sound, conservative financial plan which provides the founders, investors and employees the opportunity to financially capitalize. The following paragraphs provide valuable details and insight to the figures which comprise the plan.

Financial Goals & Objectives

Achieve overall positive cash flow within the 1st quarter of year.

Obtain required financing through private placements throughout.
Minimize the aging of accounts receivable
Take advantage of prompt payment discounts offered by vendors

Maintain a net profit percentage of 25% beginning in same year.

Meet or beat target budgets for project production, promotion and corporate overhead expenses
Decrease the manufacturing cost per unit (CDS) to under #100 through volume discounts
Meet conservative projected sales targets

Fulfill required fiduciary responsibilities to investment partners

Provide interest payment to holders of debentures (12.5%)
Provide 13% dividend to investors.
Maintain balance sheet attractiveness for potential public financiers and investors
Adhere to typical industry financial ratios
Adhere to all required federal and state laws in all aspects of the business
Institute an employee profit sharing plan

Financial Rationale

The financial rationale accurately describes the various assumptions which comprise the pro forma income statements, statements of cash flow and balance sheet. In all cases, these assumptions follow a conservative approach.

Income Statement

Sales Revenue

Beedeeonstreets will generate the majority of its revenue from the sale of pre-recorded music product. This includes compact discs (CDS), cassettes, CD singles, cassette singles, vinyl albums and enhanced CDS. For purposes of revenue forecasts, management will projected varying unit volumes for each of its projects. Sales will occur within a fifteen-month time frame from the release date. Based upon the intensity of Beedeeonstreets marketing plan/budget for its projects, the following unit projections will be quickly attained and surpassed.

	250,000 units/release
	250,000 units/release
	125,000 units/release
	125,000 units/release

Beedeeonstreets will gross approximately $8.75 for each full-length compact disc sold, and approximately $6.00 for each full-length cassette. The current retail price for compact discs and cassettes averages approximately $14.72 and $9.15. Currently, the industry is reporting four CDS sold to each cassette.

In addition to the sales revenue generated from the full-length CDS and cassettes, revenue will be earned from the sales of "singles". The retail sales price for "singles" is $6.50, resulting in gross revenue of $5.00 per CD unit for Beedeeonstreets. Beedeeonstreets will release three to four singles from each full-length album project. Revenue projections in the financial model are based upon the following estimates of "single" sales.

	3 Singles	51,000 units per single release
	2 Singles	51,000 units per single release
	2 Singles	25,000 units per single release
	3 Singles	25,000 units per single release

Additional Beedeeonstreets profit centers will include distribution, video revenue, merchandise revenue and concert promotion revenue. Initially representing less than 5% of the company's revenues, the magnitude and scope of these areas will increase as Beedeeonstreets and its artists' reputations increase.

Cost of Goods Sold is comprised of: artist/producer royalties, mechanical royalties and product manufacturing (CDS, cassettes).

Artist/Producer Royalties will be paid from the gross revenue figure of $7.90 for CDS and $6.00 for cassettes. On average, the artist and producer royalty percentage are 8% and 3% respectively. Royalties attributed to "singles" will vary depending on the volume of "singles" shipped.

Recording artists and producers will accumulate and earn royalties for each unit sold after the project's break even point has been reached.

Manufacturing of CDS and cassettes will be subcontracted. Applying discounts available with large quantity purchases, Beedeeonstreets will obtain a price of $1.10 per CD and $.90 per cassette. As unit totals increase, manufacturing costs are expected to drop 10-15%.

General & Administrative Expenses

It is management's intention to minimize G&A expenses in an effort to keep overhead expenses manageable. A full list of applicable expense items including associated monthly amounts is available upon request.

Statement of Cash Flow

Accounts Receivable - A/R are conservatively projected with 45% of A/R collections occurring in a 1-29 day period and the remaining 55% in a 90-120 day period. The majority of accounts receivable will be outstanding from the distribution company, which receives payment directly from retailers and will subsequently remunerate Beedeeonstreets. Because of the extended nature of A/R in the industry (typically 60 days), Beedeeonstreets will utilize A/R Financing to assist its cash position in the first twenty-seven months of operations. A 3.5% A/R financing fee is incorporated in the financial model. The size, strength and reliability of Beedeeonstreets distribution partners will provide a traditional financial institution or an A/R Factor with the proper security to create a working relationship for Beedeeonstreets paper.

Inventory - Inventory for album releases and upcoming product has been conservatively projected. Despite the fact that lead times for manufactured products are approximately two weeks, Reed's financial model calculates inventory purchases in the following manner: 30%-60 days prior to sale and 70% - 30 days prior to sale. The majority of the pre-recorded music product will be stored with the manufacturer and shipped directly to the distributor's fulfillment/distribution centers. A small amount of sample (1,000-2,000 units) and promotional products will be kept on hand at Reed corporate offices.

Accounts Payable - For purposes of this financial model, A/P is separated into two categories: Manufacturing A/P, and Artist Royalty/Mechanical A/P. adhering to the conservative approach, the model is constructed with Manufacturing A/P being paid in the same month that the expense is incurred. Artist Royalties will be accumulated and paid bi-annually, in August and February.

Project Production Budgets - These vary depending on the genre of the project. Established relationships and affiliations in the industry enable Beedeeonstreets to produce its projects over a ninety-day period, for approximately half the typical cost paid by a major label record company.

Marketing & Promotion Budgets - These vary depending on the particular genre of music. Marketing budgets will be expired through the course of twelve-month marketing campaigns.

Balance Sheet

The following assumptions are made in the projected Balance Sheets.

Cash - The financial model is designed to portray the accumulation of cash in the company. Cash outlays relating to dividends on common/preferred stock, employee profit sharing, and capital expenses, etc., have been intentionally not included. Moreover, the plan does not address the tax implications of "holding" this amount of accumulated earnings.

Property & Equipment - Property and equipment acquisitions include initial office equipment, pre-production studio equipment and leasehold improvements (office/studio). For purposes of the financial plan, these assets depreciated over a year.

Audio/Video Masters - Combined production expenses for all radio and video projects. These items are depreciated over the course of 120 months.

Deposits - This line of the balance sheet relates to utilities deposits required for corporate offices.

Copyrights & Trademarks - Included are the filing and legal fees associated with copyrights and trademarks for each of Beedeeonstreets projects. These items are amortized over a 180-month period.

Organizational Expenses - Legal, accounting and other professional fees necessary in organizational process. Amortized over 60 months.

Project Production Costs

The following budget addresses all relevant costs involved with producing an album project. The entire process, pre-production through final mixing/mastering encompasses approximately 90 days. The following budget is written for a typical project for an R&B, Pop, or Jazz Album. Projects released through Light Recordings (Gospel) and Beat (Urban, Rap) are 66% and 40% of this total.

Production Personnel Cost
Recording Engineer	#200,000 per/day
Mix Engineer	#150,000 per/day
Production Administrator	Salary built into income statement
Project Assistant	#100,000. per/day
Producer	Flat Rate, plus 2% of the project revenue
Studio Expense	#100,000 per/day
Pre-Production
Official Production	For documenting computer, MIDI, recording and mix for recording daily activities in order to keep accurate records of time for the purpose of financial prudence and the keeping of the labor codes of the American Federation of Musicians and the American Federation of Television and Radio Artists.
Studio Musicians/Studio Vocalist
Session Musicians	#200,000.00 per/musician
Featured Lead Vocalists	#300,000 per/vocalist
Featured Lead Musicians	#250.00 per/musician
Background Vocalists	#100.00 per/vocalist
Tape Cost
Ampex of Digital Master Tape	#300,000 per/reel
Ampex Digital Audio Tape	#100,000 box
Pro-Audio Cassette Tape	#160,000 box
Ampex 2" Master Tape	#400,000 per/reel
Ampex 1/2" Analog Tape	#150,000 per/reel
Post Production
Studio Fees for Mixing Materi	#300,000 per/day
Mastering	#450.00 per/day
Computer work	#150,000
Mastering Engineer	#400,000 per/day
Artwork/Photos/CD Design
Photos		#100,000
Artwork (Compact Disc Cover, Booklet, Disc)		#150,000
Preparatory Printing		#250,000
Total Project Cost		# 2.50000

Use of Funds Statement

The following list describes the initial equipment necessary to begin initial operations. The section

A. Office Setup	#320,000
B. Pre-Production Equipment	#570,000
C. Leasehold Improvements	#200,000
D. Deposits	#300,000
Total	#1,390,000

Initial Office Setup
3 Desks	@	3500	#10,500
6 Chairs	@	2000	#12,000
1 Coffee Tables	@	4000	#4,000
5 Lamps	@	1000	#5,000
2 Small Tables	@	1500	#3,000
1 Interior Decoration	@	85,000	#85,000
8 Filing Cabinets	@	45,850	#45,850
1 Refrigerator (small)	@	11,000	#11,000
1 Initial Office Supplies	@	50,000	#50,000
2 Office Computers (PGs)	@	35,000	#70,000
3 Portable Computers	@	65,000	#1,30,000
1 Apple Mac Computer, graph	@	110,000	#110,000
2 Monitors	@	42,000	#84,000
1 Laser Printers	@	60,000	#60,000
1 Scanner	@	45,000	#45,0000
2 Network Adapter	@	15,000	#30,000
15 Software	@	1000	#15,000
2 CD Player	@	35,450	#70,900
3 Portable CD Player	@	25,000	#75,000
1 DAT player	@	130,000	#130,000
2 Portable DAT player	@	75, 000	#150,000
3 Speakers (pair)	@	50,000	#150,000
2 Deck	@	15,000	#15,000
2 Amplifier/Equalizer	@	80,000	#160,000
1 VCR	@	15,000	#15000
2 Television	@	26,000	#52,000
2 Audio/Video Furniture	@	18,000	#36,000
1 Telephone System	@	26,000	#26,500
Total Initial Office Setup			#1,650750

Pre-Production Equipment for Pre-Production Studio
2 Akai MPC 60
2 Akai Sampler S1100 or S3200
2 AKG 414 Microphone
6 Alesis ADATS XT
2 Alesis D-4
2 Alesis DM-5
2 Alesis S4
2 Calzone Racks w/wheels
4 Chairs
2 Crown Power Amp
2 E-MU Procession
2 E-MU Protius
2 Korg MR-3
2 Korg T2
2 Korg Wave Station
2 Korg XBR
2 Kurzweil K2000
2 Laser Printer
2 Macintosh Computer
2 Mackie 56 Channel
2 Midi Time Piece
2 Moog-Mini Moog
2 Noiman 47 Microphone
2 Panasonic DAT
2 Personal Computer (IBM Compatible)
2 Roland 1080
2 Roland 1090
2 Sofa
2 Sound Canvases
2 Studio Pro 5
2 Tascam Cassette Deck
2 Viantage Keys
2 Westlake Monitors
2 Yamaha TX-81-2
240 1/4" jacks
40 Mis. Midi Cords
Total Pre-Production Equipment	#1,500000