CCMS…”To create a collaborative educational environment that nurtures divergent thinking, creative excellence and real-world expertise for students to succeed in today’s contemporary music industry”
LLC / For Profit Version
Center For Contemporary Music Studies 2013 CCMS…”To create a collaborative educational environment that nurtures divergent thinking, creative excellence and real-world expertise for students to succeed in today’s contemporary music industry” References
1. Summary Statement The Center for Contemporary Music Studies (proposed LLC structuring), is a unique and progressive center that provides accredited music education in theory, technology, performance and marketing; fast-tracking the preparation of its students in a revolutionary way, so that they may achieve real world success in the rapidly evolving music industry. CCMS prepares the student for a career in all aspects of today’s music industry, delivered in 20% of the time and at 15% of the cost of a 4 year degree program, with an accredited career path that is recognized and respected in the industry.
2. Business Model CCMS is a For-Profit (LLC) Educational Delivery Business categorized as providing a service. P&L is based on management of Payroll and Operating Expenses, continued addition of course offerings and increased enrollment. CCMS is created on a changing model, so we evolve with the timeline of current trends. This model will give value to preparing the student for success in a contemporary music environment. Our on-going, industry recognized reputation will be what helps students realize that the dollars they pay for a CCMS education is money well spent. Our non-cash based affiliate program is projected to give us a 1-4 return current student to new student referral conversion ratio.
Tab 1 / Page 1
Business Structure Tab 1 / Pages 1 & 2 Educational Model: Tab 2 / Pages 1-4
3. Problem Colleges, Conservatories and Universities generally fall short of delivering their promise of preparing the music student for a career as a professional musician. In today’s economy, students are taking on an unrealistic debt-load to secure a degree which has no portability to other industries, and has little, if any, job guarantee upon graduating. A 5-15 year gap exists between where education leaves off and where the industry is flourishing.
Tab 1 / Pages 3-9
4. Marketing / Sales CCMS will have a complete marketing partnership with Google Ad Words, plus an active usage of other social medias, CCMS Student Affiliate Program, pay-per-click ads, search engine optimization, web banner ads, travelling seminar program, personal and professional referrals, trade shows, testimonials and success stories from faculty and alumni, advertising in trade publications, CCMS student portal collaborations and SCORE®, the co-op lead conversion system.
Tab 1 / Pages 22-31
5. Target Market The education industry is in the midst of a growth explosion and a new revolution in the way education will work for students in a struggling economy and an ever-changing world. The market is booming with new college opportunities. There are more and more online options becoming available as the need becomes apparent to all involved. CCMS addresses the needs of obtaining a viable, contemporary music education, presenting it with the understanding of how
Page 1 of 6
Tab 1 / Page 30
Center For Contemporary Music Studies 2013 we, as humans, better learn things. Our target markets are local and distance-learning students in these areas: Graduating high school students, career and recreational musicians, continuing education for teachers and professionals, ACMT industry-recognized professional certification, students who may prefer to achieve a more traditional, diversified education by including academics with our Associate Degree, centralized school district training facility for the Treasure Valley, ShowTime camp, bands/performance groups and individual artists.
6. Competition Full Sail University, Winter Park, FL: They are focused on multi-media as well as music. Their strength is that they embrace technology and provide an education that would prepare a student for a job in current music and multi-media fields. Lately, they have been pushing 4 and 6 year degree programs and hiring faculty with an emphasis on academic achievement not professional credentials. This drives up cost and creates crushing debt loads for the student and extends their completion time beyond what is needed for the industry. Art Institute/ Educational Management Corp: Their strength is that they are located in 48 markets in North America, they have a robust distance-learning system, and they embrace new technologies which are music related. They have a strong culinary department as a primary focus, so they are weaker in the depth of music courses they offer. They offer only music production courses, without the foundation of music theory, performance, and marketing. Academy of Art University: Their focus is mainly on music for visual media. Mostly technical with very little actual music theory and performance, they are also focused on a degree program. Point Blank On-line School:
Validated by Middlesex University and equivalent to one or two years of a BA (hons) degree course, here is your opportunity to benefit from the practical music industry expertise and cutting edge teaching methods that Point Blank is known for, whilst also gaining an internationally recognized Higher Education qualification. This school, although located in London, England, features the most amount of matching criteria. It has a heavy focus on brand based software training (which is really step 2‌you need the basics first) but it is matching in price, time footprint, teaches industry current material and is a feeder school to a larger, well known college. Point Blank is partnered with Middlesex University and offers a Dip HE in Music Production and Business with the University (subject to validation, Spring 2012). This qualification is delivered entirely online and consists of twelve modules, two taken concurrently in each term of the year. The total credit value at HE level is 240 credits at level 4/5. This is a unique opportunity in online learning to combine music industry production and business expertise with an academic HE qualification validated by a UK university. Very low price point for individual training certifications. It has great interfacing with the industry in the areas of record labels, software and hardware, retailers. Because it does offer advanced courses in DJ mixing and producing, most of the testimonials come from students active in the Rave / Ambient / Dance mix industry. Their delivery systems are similar to what we Page 2 of 6
Tab 1 / Pages 32-33
Center For Contemporary Music Studies 2013 will be but we will have a stronger emphasis on the basics of theory, performance, technology and marketing and provide a more complete music education. But there is a lot here to learn.
7. Milestones (Months are relevant to Academic Year which starts in September) Month 1 Month 1-8 Month 6-7 Month 5-12 Month 10 Month 13
LMS systems integration, acquisition of phase 1 physical plant R & D curriculum vitae completed. Complete preliminary application for conditional institutional accreditation Beta testing- Technology and Marketing modules. Continuing education path (preferably August). Start of AY2. Four path offerings: College Entrance Path & Career Prep Path, ACMT Pro Certification and Associate Degree in Applied Contemporary Music and Technology
Month 25 Month 34 Month 48 Month 61
AY3: 100% Curriculum Vitae offered. Graduate first Associate Degree class
Tab 1 / Pages 35-36
Quad 4: ShowTime camp. Expansion into permanent facility Market expansion / Franchise / Round 2 Investment
8. Institutional Accreditation CCMS is an accredited institution so every course of study is fully recognized as following the standards set forth by the US Department of Education. Our accrediting body is NWCCU / The Northwest Commission of Colleges and Universities. We offer an Associate Degree in Applied Contemporary Music & Technology which is our professional certification with added academics, giving any student receiving that degree more portability of credits if they do decide to pursue a more advanced degree at a later date.
9. Management Team The CCMS Core Team is the heart of how CCMS structures its full time faculty, administrators and developers. Unique to this concept is the fact that each member has a primary focus, but also is actively involved from an ad hoc standpoint in all core responsibilities and logistics. A Core Team Member has been selected for many reasons: professional experience, high level of talent, degrees or certifications, a passion for teaching, specific skills in the industry, the desire to participate in all areas of CCMS development, and a drive to create their own lasting legacy.
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Tab 2 / Pages 5-7
Tab 2 / Pages 15-25
Cash In-Yearly (Based on a 40 week Academic Year / 4 Quads) Year 1
Year 2
Year 3
Year 4
Year 5
Grants
$302,160 $158,910 $110,000 $29,700 $13,275 $27,000
$1,290,575 $3,623,620 $300,035 $399,055 $290,000 $290,000 $33,660 $46,575 $88,825 $188,110 $27,000 $27,000
$5,042,990 $543,415 $362,500 $55,350 $289,875 $27,000
Total
$641,045
$2,030,095 $4,574,360
$6,321,130
Tuition Fees CODA Sponorship & Scholarship CODA Community Retail (Server & Downloads)
Total $7,742,420 $18,001,765
Tab 4 / Pages 3-9
$794,950 $2,196,365 Tab 4 / Pages 10-16 $362,500 $1,415,000 Tab 4 / Pages 23 & 24 $57,825 $223,110 Tab 4 / Pages 23 & 24 $388,625 $968,710 Tab 4 / 17-22 $27,000 $135,000 Tab 4 / Pages 23 & 24 $9,373,320 $22,939,950
Note: AY 1 only teaches three courses in the 4th Quad. AY 2 teaches 85% of our offerings in all 4 Quads
Start Up Expenses / Depreciation Faculty, Adjunct, G and A, PSR / Call Center Year 1 Equipment Relocation
Year 2
Year 3
Year 4
Year 5
$40,000
$0
$0
$0
$0
$0
Office Multimedia
$8,300
$1,660
$1,660
$1,660
$1,660
$1,660
Office Furnishings
$18,000
$3,600
$3,600
$3,600
$3,600
$3,600
$1,000
$0
$0
$0
$0
$0
Software / Content Design
$25,989
$8,663
$8,663
$8,663
$0
$0
Software / LMS
$13,996
$4,665
$4,665
$4,665
$0
$0
Software / Associate Degree
$20,000
$6,667
$6,667
$6,667
$0
$0
MBTI & SII Certification
$2,445
$0
$0
$0
$0
$0
Classroom Technology
$23,478
$4,696
$4,696
$4,696
$4,696
$4,696
Classroom Furnishings
$19,384
$3,877
$3,877
$3,877
$3,877
$3,877
$8,000
$1,600
$1,600
$1,600
$1,600
$1,600
Distance Learning Video Rig
$32,411
$6,482
$6,482
$6,482
$6,482
$6,482
Marketing Ramp Up
$60,500
$0
$0
$0
$0
$0
Total Start Up Fees
$273,503
$41,910
$41,910
$41,910
$21,915
$21,915
Office Supplies
Phone System
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Studio A & B move from LV Office and conference multi-media 12 Offices, 2 conference rooms Start up general consumables Adobe eLearn Suite (12 seats) JoomlaLMS / SCORM Compliant Academic Curriculum Admissions Certifications Educational multi-media/ 4 rooms Classroom seating for 125 6 line Panasonic phone system 4 Cam / 6 Data video streaming
Operational Expenses Year 1 IT Maintenance Bank Service Charges Cleaning Miscellaneous / Physical Plant NWCCU Acreditation Dues / Fees Accountant Legal Insurance / General Liability Insurance / D&O Life Insurance / Founders Travel Rent Studio A & B leasing Utilities Taxes (Real Estate, etc.) Telephone / DSL (50 meg) General Liability Reserve Fund Total
Year 2
Year 3 Year 4 Year 5 Total $3,450 $3,450 $3,450 $17,250 $4,800 $7,250 $7,280 $28,930 $1,800 $1,800 $1,800 $9,000 $3,600 $3,600 $3,600 $18,000 $18,500 $19,200 $22,060 $90,960 $3,423 $4,156 $5,626 $16,138 $1,200 $1,200 $1,200 $6,000 $15,000 $20,000 $25,000 $114,000 $4,500 $4,500 $4,500 $22,500 $2,200 $2,200 $2,200 $11,000 $2,500 $2,500 $2,500 $12,500 $31,392 $34,531 $26,160 $193,843 $288,000 $288,000 $288,000 $1,084,000
$3,450 $4,800 $1,800 $3,600 $15,600 $0 $1,200 $30,000 $4,500 $2,200 $2,500 $75,600 $110,000
$3,450 $4,800 $1,800 $3,600 $15,600 $2,933 $1,200 $24,000 $4,500 $2,200 $2,500 $26,160 $110,000
$0
$14,340
$15,057
$15,810
$16,600
$61,807
$7,000 $0 $3,120 $1,200 $20,000
$7,000 $0 $3,120 $1,200 $20,000
$8,000 $0 $3,120 $1,200 $20,000
$18,000 $0 $6,340 $1,800 $20,000
$18,000 $0 $11,300 $1,800 $20,000
$58,000 $0 $27,000 $7,200 $100,000
$286,570
$248,403
$427,742
$454,337
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$461,076 $1,878,128
CMS / managed by Core Members General Maintenance not in lease Chase Business Banking Account Cleaning Service Cost over-run account Dues and Fees to NWCUU Audit & Tax Service Copyrights, Endorsement, Liability Business Liability Directors and Operators Insurance Founders life insurance on Tom Flight, Hotel, Per Diem, Ent / 4 Days Location 1: AY 1-2, Location 2: AY 3-5 5 Year lease agreement of Studio facility TBD by lease LLC Passes tax liability to Class B 8 Voice Lines, 2 / 50 meg DSL legs General Business Liability Controlled by CFO
INCOME
Year 1 Income Cash In / Tuition Cash In / Fees CODA Project Grants Retail Total Income
$302,160 $1,290,575 $158,910 $300,035 $139,700 $323,660 $27,000 $27,000 $13,275 $88,825 $641,045 $2,030,095
EXPENSES
P&L SUB-TOTALS
EXPENSES
Year 1 Start Up & Operating Expenses Start Up Operating Expenses Sales and Marketing Expenses Traditional Web Direct Materials / Printing & CODA STAFF Total Sales & Marketing Expenses Payroll Expenses Salary Admin Salary Faculty Adjunct / Hourly General Office / Hourly PSR / Call Center Total Payroll Expenses
Year 2
Year 2
Year 3
Year 4
$3,623,620 $399,055 $336,575 $27,000 $188,110 $4,574,360 Year 3
$5,042,990 $543,415 $417,850 $27,000 $289,875 $6,321,130 Year 4
Year 5 $7,742,420 $794,950 $420,325 $27,000 $388,625 $9,373,320 Year 5
Total $18,001,765 $2,196,365 $1,638,110 $135,000 $968,710 $22,939,950 Total
$273,503 $286,570
$0 $248,403
$0 $427,742
$0 $454,337
$0 $461,076
$25,000 $64,000 $10,000 $10,000 $109,000
$25,000 $64,000 $10,000 $10,000 $109,000
$15,250 $84,000 $7,000 $5,000 $111,250
$10,513 $64,000 $4,000 $5,000 $83,513
$8,788 $54,000 $4,000 $5,000 $71,788
$84,551 $330,000 $35,000 $35,000 $484,551
$396,800 $416,640 $396,800 $416,640 $29,822 $196,681 $128,144 $173,339 $58,071 $139,213 $1,009,637 $1,342,513
$437,472 $437,472 $206,515 $187,097 $292,347 $1,560,903
$459,346 $459,346 $381,672 $228,524 $269,504 $1,798,391
$482,313 $482,313 $569,347 $307,303 $383,224 $2,224,500
$2,192,570 $2,192,570 $1,384,037 $1,024,408 $1,142,359 $7,935,945
$0 $0 $0 $427,742 $454,337 $461,076 $111,250 $83,513 $71,788 $1,560,903 $1,798,391 $2,224,500 $400,000 $800,000 $1,200,000 $2,499,895 $3,136,241 $3,957,365 $2,074,465 $3,184,889 $5,415,955 $41,910 $21,915 $21,915
$273,503 $1,878,128 $484,551 $7,935,945 $2,600,000 $13,172,126 $9,767,824 $169,558
Start Up Operating Expenses Sales and Marketing Expenses Payroll Expenses Investor ROI Total Expenses EBITDA Depreciation
$273,503 $0 $286,570 $248,403 $109,000 $109,000 $1,009,637 $1,342,513 $0 $200,000 $1,678,710 $1,899,916 ($1,037,665) $130,179 $41,910 $41,910
P&L
($995,756) $172,089
$2,116,375 $3,206,804 $5,437,870 Page 6 of 6
Tab 4 / Pages 3-9 Tab 4 / Pages 10-16 Tab 4 / Pages 23-24 Tab 4 / Pages 23-24 Tab 4 / Pages 17-22
$273,503 One Time Start up Costs $1,878,128 Monthly Operational
$9,937,382
Print, Mailers Google AdWords w/YouTube Special recruiting seminars Support materials for STAFF
Tab 4 / Pages 25-39 Tab 4 / Pages 25-39 Tab 4 / Pages 25-39 Tab 4 / Pages 25-39 Tab 4 / Pages 25-39
Total of Start Up Total of Operating Expenses Total S & M Total Payroll