E-Music.com is a music lessons business website that is going to establish an online classroom for musicians and students from all parts of the world. This site will offer virtual music lessons in drums, piano, the guitar, and voice. In addition, instruments will also be available for rent or purchasing. Recordings of virtual instructors will be provided to ensure the students experience a real music class. Students will watch videos of instructors and will have the capability to chime in with questions via the chat box on a side wall.
E-music.com will be operated by its sole shareholder, Stephen Evans, with the support of two more employees. Students will register online for classes, and each will be issued with a username and password to access the training materials, and for communication with the instructors.
Mr. Stephen Evans will invest $40,000 in the business. The business will also have to borrow at least $120,000 during the first financial year to cover for training equipment and payment of tutors. The business will get profit within the first six months, upon which repayment of the loan will start at the start of the second year.
E-Music.com will be an online based business venture operating as a website application, and running under the domain name, e-music.com, and hosted by a webhosting company such as godaddy.com. Development of the site will take the least time possible, estimated at fourteen days. The site will have a friendly user interface, upon which the user will interact with the system for registration, learning, and interaction with both the instructors and fellow students through a chat application with text support.
E-Music.com will employ a Subscription business model (where a user must first pay a subscription fee before enjoying the services provided by this company) and a bricks and clicks business model for those purchasing or hiring music instruments.
The business will generate revenue from membership registration, sale of instruments, and advertising space.
The Mission of E-Music.com is to become the leading virtual institution for music training in its targeted market for music students and musicians.
Goals and Objectives
The main objective of this business is to provide a learning platform for persons interested in music, but have limited resources, or limited access to a music institution. Our interest is also to work with those who already have the musical instruments but do not wish to pay for classes due to other commitments.
The business will provide instruments for hire, as well as for sale, to individuals and organizations. Purchase and hiring of music instrument will only be by credit card, after which the buyer can pick the instrument from our designated agents; or can request for shipping (where the shipping fee will be incurred by the buyer). To register for tutorship, one will also be required to pay a registration fee and accept our terms and conditions. The process of registration will be fully online, and will require the use of a credit card.
E-Music.com is a unique business in that, while most other music institutions provide classroom-based services, E-Music.com will provide similar services via the internet. Tutorials and other content will be available in text or video. Lessons will have comprehensive video demonstrations and audio support where possible. However, all training material will only be available to registered members.
E-Music.com will be a web-based service, and therefore will be global accessible. However, results from Google insight over the last twelve months indicate that it is the United States, the United Kingdom and Canada that have high prospects. The population of internet users, according to International World Stats, is 26,960,000 for Canada, as of March 2011; 239,893,600 for the United States, as of June 2010; and 51,442,100 for the United Kingdom, as of June 2010.
E-Music.com is targeting a smaller population from the above statistics whatsoever. These are the students who have enrolled for music classes, music enthusiasts, and musicians who are already active in the industry, who wish to learn more musical instruments. We shall also target music institutions which can deliver content, as well as purchase music instruments. From the statistics above, there are at least 1% potential customers from the three regions. We will target this population and due to the steady growth in the music industry, E-Music.com is bound to be successful.
The main competitors are music institutions who offer classroom-based music training, and classify themselves as music institutions. Some music institutions offer web services for their classroom students only, but lack support for those who cannot attend school. There are very few online music schools available in the internet, thus the major competitors for E-Music.com.
The only advantage that competitors have is being in the field for quite a bit of time. This is because they have been able to attract customers earlier, and have already enrolled them for their classes.
Currently, with few music trainers online, it implies that they only specialize in music from a given region; and therefore are not diverse. Secondly, they only target a small group of people per region who have direct access to the institution. The cost of training is relatively high in training institutions due to the trainer fees, and the purchased instruments. For institutions with online classes, they are very expensive and therefore can only be accessed by a small group of people who can meet the cost.
Keys to Success
E-Music.com is a small business, with potential to become big. We intend to provide services at reasonable costs. The registration fee will be low compared to other institutions. This will be for the purposes of maintaining the website, paying the instructors, producing content, and loan repayment during the second year. Since this is an online business, we shall provide content from diverse groups, and training for major instruments such as piano, guitar, and drums. Voice balancing and intonation will be part of the training for students of different background.
As a web service, we shall be accessible to everyone who has internet access, and therefore, students can learn from home, and those who are employed can learn at work from their work computers; those who have mobile phones with internet and flash support could also access the materials via their mobile phones.
In addition, training materials will be available at all times in our site for the registered members; and registration for potential members will take place at any time of the day. Our website will also have links to other websites with relevant materials for our registered members. The site will also make the materials available for download so that our customers will enjoy the services while offline, and unlimited number of times without incurring data transmission costs.
Other music institutions lack an online interaction mechanism. E-Music.com will provide this tool so that students can interact with each other, as well as with their trainers. They will also have a portal to upload their recorded content for evaluation by our trainers, where they will be guided on where to improve and determine their progress.
This is an online business venture, and therefore will require the dynamics required for online businesses. It will provide a web interface which will be the only interface between a web user and the business. Therefore, this website will provide a login screen (and a registration screen link for unregistered, potential users). On successful login, members will access different content depending on what they have subscribed for. There will be video content ready to watch, and download links for video and text. Examples will also be provided to enhance the user skills.
On the other hand, instructors will be hired on temporary basis to produce the content. These will be qualified persons with background in music training. They will offer tutorship for areas of their specialization. These lessons will be recorded in video and audio format, and samples of the training materials in text format. These videos and audio files will then be edited for upload to the website. These contents will then be uploaded by Stephen Evans.
This website will be developed by Stephen Evans who has the background in web design and management, and owns the business systems’ specifications. The development is estimated to be around fourteen days. On completion of development, the E-Music.com will buy the domain name e-music.com from godaddy.com. We shall then get a suitable web-hosting company to host the website on behalf of the company.
In the management team, we will have Stephen Evans as the Chief Executive, and will oversee all the operations of the other three employees, manage the website, and respond to customer queries on matters relating to payments, purchases and hiring. The roles of the three remaining employees will be distinct, and dependent on their specialization areas. There will be a music tutor who will respond to all student queries in relation to music; a video and audio editor who will produce and edit recorded content for upload to the website;
E-Music.com intends to spend around $160,000 during the first financial year to cover for expenses in purchasing music instruments, hiring music tutors, and paying the employees. This amount will also cater for webhosting, domain registration and business registration fees.
However, E-Music.com cannot fully raise the amount stated above. We therefore intend to top up to that amount by getting a loan from a financial institution. E-Music.com will raise $40,000 and borrow the remaining $120,000. This amount plus stipulated interest rate will be paid after the first financial year in installments for six months.
This business has high financial viability. With estimated subscription of at least 2000 students in the first financial year, we shall have the capacity to generate an estimate of $400,000 before tax; at a subscription rate of $200. This will make us have financial independence during the second financial year, and enable us to expand and repay the loan in full. During this second year, we shall hire full time tutors, and if there is an increase in student capacity, we shall reduce the subscription fee to enable more people to register. This will give us an edge over those other institutions which subscribe members at $1000 or more for similar services.