POLYPHONY ARTIST MANAGEMENT
Talent Management Service
Business Plan
Dr. Daniel Baldwin, D.M.A.
Owner, CEO
Phone: (620) 805-9555
Industry Overview
In a booking industry that generates revenue of over 5 billion dollars every year, according to Statistica, the minimal overhead required for an artist management business, combined with its almost limitless earning ceiling, makes it a terrific low risk business for which to enter.
In a world that has been largely shut down to live performance the past year, artists are now looking for other avenues for artistic outlet as well as representatives to push for performances on their behalf. While a niche specialty is wise with most other business models, the more an artist management company can branch out and represent talent from various different fields (i.e. music, art, athletes, etc.), the more money it can make.
Executive Summary
Polyphony Artist Management currently serves exclusively classical musicians, those who are looking to expand the scope of their career. With this expansion, we will be not only in a better position to serve our currently clientele and expand our roster of performers, but also expand out into other talent management such as popular music, art, literature, and athletes. This will allow our new talent management group to expand exponentially into a diverse and profitable roster of clients serviced by talent managers with a specialized skillset that caters to their specific field.
In an effort to expand services to our classical performance constituency, we will be hiring artist managers with years of experience in the fields of art music performance, popular group management, art and literary management, and athlete management. A booking agent will be hired as support staff, who will service each of our different talent management areas. Booking agents can book as many as 100 gigs per month between all of the various talent on our roster. Once going, this service alone will increase Polyphony’s total revenue into the six figure range in the first 12 to 18 months of initial hire. Bookings will include concerts, tours, art gallery events, book signing tours, etc.
We can say with extreme confidence that we will be able to generate a robust profit margin and are ready to make our presence known in the industry. We will ensure this through steady and consistent roster growth as well as from the benefit of each of our offered services.
As the owner of Polyphony Artist Management, in three years I have had no client that I have signed drop our service, even in its infancy. I pride myself on my ability to work well with others, cultivating a working environment that promotes new ideas, positive interaction, competitive salaries, regular trainings, and a safe and professional work space guided by strong professional ethics that will hold our personnel to the highest standards of professionalism.
Products and Services
Polyphony Talent Management will offer a variety of services for our roster, not only in the United States, but the world over. Our intention is to market our clientele on a national and international scale through project development initiatives, booking services, and contract negotiations.
Here are just a few of our services:
· Dedicated Webpages
· Social Media Marketing
· Event Promotion
· Contract Negotiation
· Booking Services
· Graphic Design Advertisements
· Press Packet Organization and Distribution
· Recording Reviews
· Recording Label Services
· Project Development
· Merchandising
Mission and Vision Statement
Our vision is to become the world’s leading talent agency through personal attention to and dedication to personal goals.
Our mission is to build a world class talent management agency through high quality talent acquisition and high quality management personnel.
Business Structure
The success of any business is largely dependent upon the organization and business structure as well as the people filling specific key roles within the business. Polyphony Artist Management has a foundation built upon a solid business plan, structure, and the hiring of competent go getters excited to fulfill the mission and vision of our business.
The fact we will be looking to compete on the world stage immediately upon opening will necessitate the immediate hiring of key personnel on a full time basis to both serve our existing clientele and heavily recruit new artists to the roster. Other roles can filled by part time associates, interns, and contracted out until such time that the business builds to a point in can support each of these roles in house. We will be working very hard to ensure that we attract the right people with the right mindset to help us achieve our business goals and objectives ahead of schedule.
Below is the business structure that we will begin with upon opening Polyphony Talent Management:
· Chief Executive Officer/Administrator
· Entertainment Lawyer
· Talent Manager (2)
· Booking Agent (2)
· Grant Writer
· HR Manager/Accounting
· Marketing/Sales Executive and Project Manager
· Office Manager
Job Descriptions
Chief Executive Officer (Daniel Baldwin):
· Recruits and oversees new hires, training, coaching, discipline, planning, accountability, appraising results, developing incentives, and developing culture for idea and information sharing.
· Providing direction and leadership for the business.
· Development and implementation of the business strategy, mission, vision, and overall direction.
· Responsible for the signing of documents and checks on behalf of the business.
· Evaluates the success of the business.
Entertainment Lawyer (On Retainer):
· Responsible for drawing up contracts and other legal documents.
· Advise artists and business of any possible and/or imminent issues.
· Handles all matters associated with case preparation.
· Provides organization for all legal matters associated with the business.
· Keeps abreast of past and currently changing entertainment laws.
Talent Manager (2 Full Time Hires):
· Responsible for recruitment and retention of client rosters.
· Responsible for managing all aspects of the career of each client.
· Responsible for contract negotiations.
· Responsible for oversight of large project development.
· Responsible for overseeing talent development.
· Responsible for creation and updates to clientele professional documents.
· Responsible for pursuit and oversight of project development initiatives.
· Responsible for providing information for marketing campaigns.
· Responsible for maintaining organized schedules of talent.
· Responsible for procuring, developing, and maintaining extensive contacts lists for all talent areas.
· Responsible for oversight of interns.
· Handles any other responsibilities as assigned by Chief Executive Officer.
Booking Agent (2 Full Time Hires):
· Responsible for booking any and all events for all clientele and desired.
· Responsible for communication and problem solving with event managers.
· Responsible for communication with talent managers regarding scheduling and needs/desires of talent.
· Responsible for achieving a minimum number of bookings each month.
· Responsible for procuring, developing, and maintaining extensive contacts lists for all talent areas.
· Highly organized, energetic, driven, and friendly, able to forge and maintain positive relationships with event organizers and venues.
· Handles any other responsibilities as assigned by Chief Executive Officer.
Grant Writer (Full Time Hire):
· Responsible for any and grant writing pursuits toward project development, business expansion, and any other pursuits as directed by the CEO.
· Responsible for the oversight of all grant applications in progress.
· Research, organization, and development of all grant opportunities.
· Research, organization, and development of donor lists.
· Responsible for any and all contact and pursuit of donors and project and business donations.
Accounting/HR (Part Time Hire):
· Responsible for overseeing HR tasks such as new hire paperwork and organization of personnel and client documents and paperwork.
· Responsible for keeping up with licenses, policies, compliance, and taxes.
· Prepare financial reports, budgets, and financial statements.
· Responsible for financial management, ledger accounting, financial reporting, risk analysis, and financial transactions.
· Serve as internal auditor and handle external audits.
· Handle organization and distribution of royalties and statements.
· Responsible for administering payroll.
Marketing/Sales Executive and Project Manager (Full Time Hire):
· Responsible for pursuit and development of special projects.
· Responsible for pursuit, marketing, and promotion of all business services.
· Responsible for marketing and promotion of talent.
· Identifies and pursues new partners, business opportunities, development leads, and assures the completion of any and all projects.
· Communicate with clients, customers, and artists to ensure success of projects. Build client interest in business services.
· Communicate and advocate for customer needs.
· Develops and executes new plans for expansion and increased sales and growth.
· Documents all customer contact and information.
· Handling and oversight of all social media marketing.
· Oversees all merchandizing and distribution of any and all merchandise developed by the business.
· Provide marketing and promotional assistance to special project clientele.
· Pursuit of repeating service contracts.
· Handles any other responsibilities as assigned by Chief Executive Officer.
Office Manager (Part Time Hire):
· Responsible for organization of reception and care of clientele visits.
· Maintains office supplies and equipment.
· Responsible for arranging travel, meetings, appointments.
· Provides personalized customer service via email and phone calls.
· Assist all full time personnel with organization and office tasks.
· Handles any other responsibilities as assigned by Chief Executive Officer.
Market Analysis
The talent management industry values high profile, high earning talent. The tendency here is to go after those existing artists that are already high profile and earning. In all actuality, the wiser course of is to pursue young, up and coming talent, and place them on the world stage under contract. Our target markets for Polyphony Talent Management will be young, up and coming, professional musicians, artists, writers, and athletes as well as early and mid-career professionals with high upside and low risk.
We will be looking to promote these groups and individuals to set up regional to world tours at highly visible venues, concert series events, competitions, universities, and music festivals as well as attractive contracts.
Below is a list of the types of artists to whom we will be specifically marketing our services:
· Professional Musicians (instrumental, vocal, and composers)
· Professional Organizations (orchestras, ensembles, bands)
· Chamber Groups (Jazz, World Music Groups, String Quartets, etc.)
· Athletes
· Artists
· Authors
· Actors
Based on cursory internet market research, I believe the top earning service is likely, by far and away, to be booking services which could extend into the tens of millions of dollars.
Competitive Advantage
We are aware that there will be competition, even in the talent representation marketplace. What will give us an advantage over our competitors is our dedication to personal attention and vast array of services. We are dedicated to creating opportunities for our clients, no matter what that might be. If their dream is to conduct an orchestra and they have need experience conducting an orchestra, we will help them start a professional orchestra. If we believe in an actor who needs a breakout role, we will make a movie. Our competitive advantage is that we go above and beyond to a greater degree for our clients than any of our competitors. We make them our mission.
Most importantly, we will hire high quality managers that are dedicated to that goal and, as owner of Polyphony, I will be working to make sure those employees are treated well and feel valued, ensuring their dedication to their client roster and our mission.
Sales and Marketing Strategy
As we will be a service based business, we will be recruiting highly qualified individuals that will be trained to meet the goals of our business model. These individuals will ensure our product is highly competitive in the world market as well as being continually engaged in the pursuit of projects, contracts, and clientele.
We will be prepared to use the following marketing and sales strategies to attract clientele:
· Introduce our business to the greater arts community via a social media campaign on multiple sites.
· Advertisements in all relevant periodicals as well as radio advertisements.
· Attend all relevant International and local conventions, symposiums, seminars, camps, and expos.
· Encourage word of mouth marketing from loyal and satisfied clientele.
· Direct market to corporations, musicians, organizations, and individuals.
· Project development campaigns.
· Increase visibility through podcasts, internet search engine development, and strategic internet advertisements.
The artist management industry values high profile, high earning artists. The tendency here is to go after those existing artists that are already high profile and earning. In all actuality, the wiser course of is to pursue young, up and coming talent, and place them on the world stage under contract. Our target markets for Polyphony Artist Management will be young, up and coming, professional musicians, actors, and athletes as well as early and mid-career professionals with high upside and low risk. The challenge of this business is recruitment. It takes time to recruit high level talent that can be established as top tier acts. Growth will be steady, but it will take a few years to begin to develop a client roster and establish them in the arts community. It will be important to start small and grow quickly and steadily.
Our main competitors in the arts management field, initially, will be agencies like the JWP agency and Primo Artists ($4 million in annual revenue). However, attracting actors, athletes, and other higher revenue artists through the our collective connections, at the ten year mark our goal will be to have a presence in each entertainment genres and begin approaching the revenue of larger artist management firms such as United Artists and the Creative Arts Agency which each generate over $500 million in annual revenue.
Sources of Income
· Tour and Performance Bookings
· Artist Monthly Membership Fees
· Artist and Composer Commission Royalties
· Premium Project Sales and Development
· Merchandising
This business will generate a high level pure profit with low overhead, mostly personnel costs, and high potential profit projections. It will start slow as we recruit high level talent, likely bringing in less than $100,000 the first year. However, as high level talent is recruited, I expect business revenue to exceed $1 million at the five year mark with all combined aspects of the business eventually bringing in a total of tens of millions of dollars annually.
Sales Forecast
Upon examination of the current recording market in the art music field as well as forecasted revenue from our additional services and expansion areas, we have been able to formulate a minimum sales projection. This minimum projection is based on considerations such location, pandemic limitations, and competition in the United States:
· First Year Profit Margin: $80,000.
· Second Year Profit Margin: $150,000.
· Third Year Profit Margin: $350,000.
· Fourth Year Profit Margin: $650,000.
· Fifth Year Profit Margin: $900,000.
Please Note: This projection is based on the assumptions that there won’t be any extended major economic shut downs. Also, the first five years projections are based on assumed minimum gains (i.e. being able to secure just five new artists per year, which I have been able to do by myself). The above projection could be lower if shut downs are required or higher with successful marketing, promotion, and bookings. It also does not consider any revenue brought in by a grant writer.
| POLYPHONY ARTISTS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | 5 YEAR TOTAL
| Artist Monthly Dues | $25,000 | $35,000 | $50,000 | $60,000 | $80,000 | $250,000
| Tour Bookings | $25,000 | $60,000 | $90,000 | $300,000 | $450,000 | $925,000
| Commissions (composers) | $10,000 | $25,000 | $150,000 | $250,000 | $300,000 | $735,000
| Premium Project Development | $15,000 | $60,000 | $105,000 | $150,000 | $250,000 | $580,000
| Merchandising | $5000 | $10,000 | $15,000 | $25,000 | $100,000 | $155,000
| TOTALS | $80,000 | $150,000 | $350,000 | $650,000 | $900,000 | $2,645,000
If all goes extraordinarily well, as expected with high quality hires, the following could be a realistic high end projection. This does not include potential grant writer revenue or athletic contracts:
· First Year Profit Margin: $200,000.
· Second Year Profit Margin: $450,000.
· Third Year Profit Margin: $750,000.
· Fourth Year Profit Margin: $1,150,000.
· Fifth Year Profit Margin: $1,500,000
A compromise between the two above figures is the most likely overall revenue we will generate over the first five years. These figures do not include potential grant writer revenue or athletic contracts:
· First Year Profit Margin: $100,000.
· Second Year Profit Margin: $250,000.
· Third Year Profit Margin: $500,000.
· Fourth Year Profit Margin: $750,000.
· Fifth Year Profit Margin: $1,000,000
Pricing Strategy
Our pricing strategies will be based on a strategic and rigid pricing strategy. Artist monthly dues will be paid by each music and literary artist on the roster. These fees are currently set at $150 per month for a single artist on a two year contract. This amount increases by $50 per month for each additional artist in a group. For example, a string quartet would pay $300 per month in dues. Athletes will be handled more on a per contract basis. We currently represent 8 clients. Our goal will be to double our client roster each year for the first five years upon funding of our expansion and the hiring of new personnel.
A flat 15% commission is charged for every dollar we make for our clients. Each booking, composer/artist/author commission, and special project secured will be charged this rate. For example, low earning classical musicians can earn an average of between $500 and $750 per event. Our booking agent, once fully up and running will have an expectation over the first year to secure 10 bookings per month for each client (which will increase by 10 each year). Now compound that across 15 performers (which will be our year one end goal). Also, low level artists and composers can earn over $5000 per commission project of which there will be an expectation of at least 5 commissions per year for each composer and artist as well as revenue earned from talent across other genres.
Specialized project development will be set to premium pricing plans. These services will include things such as large scale recording projects, large nonprofit ensemble development, etc. These are the things that get artists excited. Our goal is to make our artists’ dreams come true, regardless of what that dream might be.
Payment Options
Polyphony Talent Management will be set up to take all payments by whatever payment methods are most convenient for our clientele. We know that, in today’s world, money is transferred in a variety of ways. Here are just a few we are already set up for:
· Cash.
· Bank Transfer.
· Bank Draft.
· Check/Money Order.
· Credit and Debit Cards (Visa, Mastercard, Discover, American Express).
· Online Transfer Services (PayPal, Cash App, Venmo, PopMoney).
Publicity and Advertising Strategy
We will be looking to work with our new sales and marketing hire to plan a publicity and advertising campaign strategy specifically to advertise strategically to our target markets. Here are a few initial platforms we are likely to use to promote and advertise for Baldwin Records:
· Strategic Print Media.
· Strategic On Air Radio Advertisements and Air Play.
· Internet Radio Announcements and Air Play
· Online Streaming Advertisements (YouTube, Spotify, etc.).
· Social Media Advertisement and Engagement (Facebook, Instagram, etc.).
· Maximize Search Engine to promote our website.
· Brand all Company Vehicles, etc. with the company logo.
· Direct Contact/Invitation and Word of Mouth.
Startup Projects
We have already begun working out deals with high level artists for premium development projects. We already have deals in place with the New York Chamber Players and the Gaudete Brass Quintet. These groups will be recording albums that involve our composers and performers. We also have a large premium composer project setup with a world renowned film composer.
Five and Ten Year Plan
It is our goal to be at a place at the end of five years that we have firmly established ourselves as a leader in our market. In five years, our goal is to have increased our full time staff from seven full time personnel (including myself) to ten plus full time adding an additional booking agent, an additional manager based on area success, and promoting support staff to full time status.
Our ten year will be centered on the goal of expanding out into other areas, creating the Polyphony Media Group, of which Polyphony Talent Management will be under the umbrella. At that point, we will begin by opening a full recording studio and label services as well as begin delving into film making and radio.
We believe this is the point at which our business will really take off.
We believe this next 10 year expansion will give a tremendous boost to the artist management business and, in turn, provide additional business revenue for the recording studio. Access to discounted premium recording benefits will be very attractive to our Polyphony Artists, which will provide steady business to the studio business (i.e. offering Polyphony Artists annual discounted digital releases/Cd releases and encourage those individuals to pay for studio time to record those digital releases with our personnel and facilities). We currently have over ten clients on the artist management roster and can see that number expanding exponentially upon the studio grand opening (we will be pushing to increase that number closer to 70 in ten years, each paying a monthly membership fee), providing membership fees, booking gigs, and an immediate roster of clientele to keep our studios and engineers busy and profitable.
Most importantly, we will have our investors completely paid back, with a thirty percent profit on their investment, inside of ten years.
Start Up Costs
The total cost involved with expanding a talent management business that competes on the world stage is not without its equipment and marketing costs, but centers more around the hiring of high quality key personnel.
Regarding equipment needs, for example, the bulk of those costs will be computers, printers, office equipment and supplies, office furniture, cell phones, and company vehicles. We will also need to begin with a modest budget for marketing as well as funds for the purchase of contact lists. Of course, this expansion also necessitates the need to find a suitable office space from which to operate. We have located a cost effective base of operations in Idaho Falls, Idaho that will work for our immediate purposes. Aside from the 12 months of rent to ensure the success of our venture, this rental facility would only require minor changes that would not require substantial capital to make work for our purposes. Hosting events will also need to be a major part of our premium project development, so owning a piano will be a significant need.
A good marketing campaign to promote our clientele will be highly successful, if done well. Based on cursory research of the costs of campaigns we would need to pursue, we would likely spend about $20,000 in doing this very well the first year.
The success of the business will largely depend upon the dedication and skill of the employees. In the beginning, I would like to expand out to include two additional talent managers (one for musicians and one to pursue an expansion into actors, writers, and athlete management), two booking agents, one grant writer, as well as several part time employees (HR, office manager, social media director, and a recruiter).
I believe $36,000 per year (with benefits and monthly sales performance bonuses) for each of these full time positions is a good place from which to start. As most businesses need a bit of time to get going, I would like to begin with one year of wages for each full time employee already in the bank so as to focus on engaging new projects and clientele to get us to our breakeven point (end of year one).
To break it all down, here is how we would be spending startup capital and approximately how much would be needed:
· Liability Insurances, permits, licenses, and retainers: $3000.
· Facility and remodel (12 month rent and deposit): $50,000.
· Office supplies (computers, software, furniture, etc.): $30,000
· Business Vehicles (for recruitment and project oversight): $75,000
· Musical Instruments (Studio Grand Piano): $70,000
· Marketing Campaigns: $20,000
· Budget for paying employees for one year: $350,000
· Additional expenditures (signs, business cards, miscellaneous): $2000
The total cost to expand this into a multimillion dollar management business will be approximately $600,000 to include equipment, facilities, personnel, and marketing.
As a protection for our investor(s), we will be offering a liquidation preference in the unlikely event the company fails. In this scenario, the sale of our vehicles and equipment will go toward investor repayment.
We are extremely confident in our business model and plan for growth and development. We know this model will be very popular in multiple areas within our field because I am already seeing the excitement beginning to build for this business. By myself, I have a number of more artists interested in jumping on board. I am at a point now that it is growing beyond my ability to do the job alone with the attention it needs. It is ready to explode into a business that will do extraordinarily well. However, in order to see that potential come to fruition, I need facilities and I need strategic and skilled employees.
On a personal note, this is the beginning of my dream. I worked many years to find my calling to open the right business at the right time. I am there. Polyphony Talent Management is just the beginning of a much larger goal. With that in mind, this is not only a safe investment, it will become an opportunity to build a relationship with a devoted small business owner that will make you money over and over and over again on my way to becoming a large business owner. The person that takes the first leap of faith will not only be rewarded financially, but personally as the person who gave us our shot. We are ready.
Checklist
· Business Name Availability Check: COMPLETE
· Business Incorporation: COMPLETE
· Renting of Office Facility: SEARCH COMPLETE
· Setting up of the Recording Label: IN PROGRESS
· Intellectual Property Protection and Trademark: COMPLETE
· Opening of Corporate Bank Accounts: COMPLETE
· Opening of Online Payment Platforms: COMPLETE
· Obtaining Tax Payer ID: COMPLETE
· Application for Business License and Permits: IN PROGRESS
· Purchase of all Insurance and Retainers for Business: IN PROGRESS
· Securing Investor(s): IN PROGRESS
· Business Plan: COMPLETE
· Employee Handbook: IN PROGRESS
· Business Documents and Contracts: IN PROGRESS
· Design of the Company Logo: COMPLETE
· Design of Promotional Materials: IN PROGRESS
· Recruitment of Employees and Contractors: IN PROGRESS
· Purchase of Equipment, furniture, vehicles, computers: IN PROGRESS
· Creating official website: IN PROGRESS
· Health and Safety Plan: IN PROGRESS
· Building Security Arrangements: IN PROGRESS
· Health Care Benefits Setup: IN PROGRESS
· Beginning New Projects to Coincide with reOpening: IN PROGRESS