admin
Fri, 10/14/2022 - 16:10
Edited Text
Executive Summary
The Orcas living in the waters of the Pacific North West are an incredible species. They are
truly the dominant predators namely because of their incredible intelligence, skill and team
effort within the Pod. Each Orca within a Pod works together for the greater good and success
of the Pod. Zpod Entertainment Company draws inspiration from the Orca where that each
service provided will aim to work harmoniously together for the success of each client within
the Zpod.
Zpod is an Entertainment Services Company primarily focusing on the needs of artists and
content creators within the niche market of Whistler, British Columbia, Canada. Whistler is a
premiere destination resort with millions of visitors each year. It sustains numerous
events/conferences, musical concerts and entertainment related initiatives and is one of the
biggest economic centers of British Columbia. It is also in close proximity to Canada’s second
largest entertainment center which is the City of Vancouver.
Zpod is eager to grow its already existing network of cliental and provide creativity,
professionalism and dedication to its new and existing clients.
The business plan for Zpod Entertainment Company Limited will outlay the direction it is
heading, market information, ideas for growth as well as financial projections.
Company Overview
Zpod Entertainment Company Ltd will utilize a two-sided business model focusing on four
areas of business including Zpod Audio Visual Services (mixing, mastering, post-production),
Artist Management and Consultation, Live Event Creative Services (audio visual) and Music
Synchronization.
Zpod entertainment company’s mission is to provide a professional “one stop shop” for
entertainers looking to develop their talents into careers. Zpod will focus on content creators
in the digital media industries including music, video, gaming and new technologies. It will
also sign and develop and manage artists utilizing Zpod’s extensive depth of experience.
Zpod has over twenty years of experience in both back and front ends of the industry which is
a main competitive advantage. Zpods location is also one of the top three Film and TV
production centers in North America as well as a hub for the gaming and future entertainment
technologies.
Business Environment/Customer
The analysis proceeds by assessing the market in which the company functions, the products
it currently offers or plans to offer in the future, and the characteristics of current or potential
customers.
Zpod will operate in the digital media industry in Canada. It will be located in the sea to sky
corridor in British Columbia. This is the third largest music hub in Canada. It has a growing and
booming gaming industry and is considered “Hollywood North” due to the high volume of
United Stated film industry clients.
The market is also beneficially supported by the government and various fiscally useful
organizations such as Creative BC, Music BC, Factor and many others.
Zpod also plans to expand its services into augmented reality technologies in the near future.
It is with no doubt that these new technologies provide incredible opportunity for the
entertainment industry. These will be artist focused AR technologies as well as AR for live event
implementations.
Marketing Strategy
Our marketing strategy will focus on cultivating a clientele in the music mixing and mastering
industries but offer bundled services to add value. For example, Artist who use our mixing
mastering services can also become part of our music synchronization catalogue. Artist who
want mixing services can also get the mastering at no extra cost. Artist signed under
management can also utilize our live event creative services department.
Zpod plans to enter the augmented reality market within the first two years of business. The
growth rate of this industry is projected to be massive over the next few years in BC.
1. About: ZPOD ENTERTAINMENT COMPANY
1.1
Name/Brands
ZPOD ENTERTAINMENT COMPANY focuses on four major areas including Audio/Visual
Services (mixing/mastering/recording/post-production), Live Entertainment and Event
Design Production, Artist Management/Consulting and Music Publishing.
All of these services areas will work harmoniously together and will include a variety of
brands including:
Zpod Audio/Visual Services:
• Zpod Studio (recording, mixing, mastering, sound design and post-production)
• Zpod Blog (music and film industry informative blog)
• Zpodcast and Social Media Content Production
Zpod Live Entertainment/Event Design:
• Valley Crow –Valley Crow is a live entertainer in Whistler, British Columbia
inspired by Whistler and the Sea to Sky Corridor.
•
Orca – an immersive audio/visual experience designed to create awareness
for the need to protect the Orca’s in the Pacific North West. Orca is
designed to travel with music festivals as an added value for the festival
experience.
Zpod Artist Management:
Administering and managing musical artists within Whistler Ski Resort and the Sea to
Sky Corridor. Focusing on obtaining 360 deals with Artists that include everything
from the mixing phase all the way to publishing.
• Valley Crow
• Terrifier/Jenna Mae/Marble Canyon
• Orca
Zpod Publishing:
• Establish a catalogue of music to distribute and acquire “sync” contracts
focusing directly on the extreme sports entertainment industry.
Existing Catalogue:
1. Rapido (Pistols at Dawn) – Alternative Rock band from Vancouver B.C.
o https://rapido.bandcamp.com/
2. Valley Crow – presently working on an EP for release summer 2019
3. Orca – Music for the Orca immersive audio/visual experience
Sector:
Arts and Entertainment - 711 – Performing Arts, Spectator Sports and Related
Industries.
1.2
Legal form
Limited Company (as described on the British Columbia Government Website)
Incorporated Companies
In B.C., incorporation creates a legal entity known as a corporation, commonly referred to as a
company. Three types of companies may be created through incorporation:
•
•
•
Limited company (most common)
Unlimited liability company
Community contribution company
What Incorporation Means
Companies are incorporated in B.C. under the Business Corporations Act. The Act gives incorporated
companies:
•
•
All the powers of an individual
An independent existence – separate and distinct from its shareholders
•
An unlimited life expectancy
A company can acquire assets, go into debt, enter into contracts, sue or be sued.
1.3
State of registration
Zpod will be registered in British Columbia, Canada because BC is home to Zpod’s main
target demographic and clientele which is Whistler, British Columbia. BC is also Canada’s
second largest entertainment hub next to Toronto. This is largely due to Vancouver being
“Hollywood North” and it’s close proximity to major entertainment hubs of the USA such as
Seattle, Portland and Los Angeles. Many US entertainment sector companies look to Canada
for creative services mainly due to the Tax incentives, the Value of the US dollar and the
professionalism found in Canadas entertainment sector. These ingredients add excellent
value.
1.4
Core Activity/Competitive Advantage
Zpod’s will focus on all activities from the mixing phase of music production continuing to
the distribution and musical asset management. All of these services will work harmoniously
in a linear fashion. Each brand of the business will add value to each other. For example, a
client who requires service for mixing could also receive mastering at no added cost. An
artist signed to a Management Agreement would also benefit from Zpod’s expertise in Event
design/production, publishing and distribution. A client needing sound design for a film or
commercial could also receive the mixing and mastering as an added value.
Value Chain:
Mixing – Mastering/Post-Production - Artist Management – Live Event Production/Design Publishing – Distribution
Zpod’s competitive advantage is that it will be located in Whistler B.C, one the most soughtafter ski/mountain bike resort destinations in the world. This is an advantage as similar larger
companies exist outside of Whistler and do not have the direct connection to the local
community. CEO of Zpod, Edward Hugill has lived and worked within the Entertainment
industry of Whistler for over ten years working alongside the major stakeholders of the resort
such as Tourism Whistler, Canadian Wilderness Adventures, The Whistler Arts Council and
the Resort Municipality of Whistler.
2. Corporate Identity
2.1
Main Stakeholders
Tourism Whistler
Vail Resorts (Whistler Blackcomb)
Origin Media
Sherpas Cinema
Whistler Arts Council
Gibbon’s Entertainment
The Resort Municipality of Whistler
Canadian Wilderness Adventures
The Adventure Group
Blackcomb Snowmobile
Sunwolf
Coast Mountain Photography
The Whistler Film Festival
Cornucopia Whistler
The Point Artist Centre
Sqaumish Lil’wat Nation
Sharai Rewels Films
2.2
Mission Statement
Zpod provides entertainment services to the niche demographic of Whistler, British
Columbia. Zpod’s mission is to provide professional entertainment services to all
stakeholders of the Resort Municipality of Whistler and beyond.
Unlike other Entertainment Service Companies, Zpod is located directly in Whistler, British
Columbia and already has a network of stakeholder connections. Zpod founder Edward
Hugill has worked and lived in Whistler for over ten years developing relationships and
working within the entertainment industry of Whistler. Zpod understands there is a need for
an entertainment service company and is eager to become a leader in the community.
2.3
Values/Mantra
Zpod’s mantra is best described by the following quote.
“Find creative ways to live your life and love everything and everyone around you” –
unknown author
Zpod’s core values are first and foremost creativity, professionalism and dedication. Zpod
will strive to be the most creative, professional and dedicated to our clients and their needs.
2.4
Visual Identity
Slogan:
Join the Pod!
Logo:
2.5
Communication
Printed:
Digital:
o
o
o
Pique Newsmagazine is Whistlers go to printed news publication. It
reaches thousands of locals as well as thousands or tourists every year.
o
Mountain Life Magazine – Whistler’s most circulated Magazine
Publication. MLM has articles and advertisements dedicated to the
mountain couture of Whistler.
Social Media: Facebook/Youtube/Spotify/Instagram
Website:
o
zpodmusic.com (domain has been registered and website is currently being
built.
Audio/Video:
§ Ramshackle Blues - Film (Viewers Choice Award Winner, B-Grade
Horror Film Fest 2018 - https://vimeo.com/297865706
(password = buckshot) please do not distribute.
•
Sound Design/Mixing/Mastering
§
Hope - The Documentary 2018 - Mastering
https://www.kickstarter.com/projects/hopethedocumentary/hopethe-documentary-0
§
Words of Wisdom – Documentary Film – Mixing and Mastering
§
Valley Crow Promo https://www.youtube.com/watch?v=tZFOt_wQHRo
§
https://soundcloud.com/user-555976464
§
https://rapido.bandcamp.com/
3. ZPOD Entertainment Offering
3.1 Value Proposition
ZPOD ENTERTAINMENT COMPANY has a solid understanding of its unique primary market
of the Resort Municipality of Whistler, British Columbia, Canada, the secondary market of
Vancouver, B.C and extending to the global entertainment market. Zpod realizes the need
for a two-sided entertainment company specializing in the development and management of
musical content creators and performers as well as audio visual support for the live
entertainment sector in these markets. Zpod is a conduit connecting the content creators to
the live event support industry. This connection is valuable to all clients as services can be
combined into bundles creating a competitive attractive offering. Zpod will focus on these
two-sides with four business entities which include:
Figure 1: Business Model
Musical Content
Production Development
and Management
Two Sided
Audio Visual Services
for Live Entertainment
Artist
Management
Publishing
and
Distributio
n
Audio Visual
Production
Services
Live
Entertainmen
t and Event
Support
Value to Musical Content Creators and Live Entertainment and Event Sector:
Zpod’s value lye in its extensive experience and knowledge in the audio-visual production
industry. Zpod’s founder, Edward Hugill, has over twenty years of experience in the
recording and performing arts and ten years in the audio-visual events industry at a
management level. His wealth of experience offers professional high-caliber services at
competitive pricing. Zpod also provides a magnitude of experience working professionally in
both the primary and secondary markets as content creator and audio-visual design and
event support and which in turn flows into the global arena.
Artists, content creators, entertainers and event producers can all benefit from Zpods value
offering in the primary market due to Zpods deep understanding of the entertainment micro
climate within Whistler.
Value to the Live Entertainment and Event Sector:
Event producers can take advantage of Zpod ‘s Live Entertainment Event Support and
Design Services. Although the resort is built for outdoor enthusiasts this creates a need for
entertainment services. Whistler is one of North Americas premiere destination resorts which
hosts a plethora of recurring annual events throughout the year including The World Ski and
Snowboard Festival, Wanderlust, Cornucopia, The Whistler Beer Festival and Whistler Film
Festival. As an indication of entertainment infrastructure, the resort was host to the 2010
Winter Olympics. Whistler also hosts high end corporate events throughout the year and has
been host to such companies as Mozilla, TedX and Electronic Arts FIFA tournament. There is
certainly a pain felt for event producers whom must pay outrageous commissions and high
fees to Zpod event support competitors. Zpod clients gain from our low overhead and
benefit from our vast event production experience and knowledge of the areas event
industry.
Not only will Zpod service the event sector in Whistlers tourism industry but also utilize years
of event production knowledge to design and implement Zpod Social Responsibility Events.
These events will serve social movements and organizations. This will alleviate some of the
stress felt by the local community due to the over saturation of corporate events in the area
and instead focus on the importance and value that socially responsible events can add. For
example, Zpod will produce an Earthdance event for the Fall of 2020. Earthdance events
take place globally on the same day and involve a synchronized collective global meditation.
These events raise money for social movements and charities of the event producer’s choice.
Zpod is also designing an immersive audio-visual experience called Orca. A large half
spherical structure complete with internal LED walls and immersive sound that will travel with
festivals and large events promoting and educating event attendees about the importance
of these wonderful creatures while also raising money for their protection. This structure and
accompanied audio visual elements can also be reused for other immersive experiences in
the future.
The live entertainment and event sector will also find Zpods Artists Management services
advantageous. Founder, Edward Hugill has already been playing within Whistler and
surrounding areas for over ten years in various acts. Under the moniker Valley Crow he has
played around thirty plus shows a year as a resident act for a local outdoor tour company
called Canadian Wilderness Adventures. Valley Crow also frequents the Roundhouse at the
top of Whistler Mountain and has been hired as an entertainer for corporate events such as
Mozilla Firefox. Due to this experience Zpod has the knowledge and network of connections
that most musical artist do not in the area. Especially the newer musical residents whom
“come for a season”. The pain felt from not having the instant network in place can be
alleviated by using Zpod Artist Management. Zpod intends to sign musical artists and
entertainers under contracts and exploit their talents to the Whistler market and beyond.
These artists will have a niche combination of talents. Firstly, they will be artists, bands,
entertainers whom either write or perform songs to be exploited. Secondly, they exemplify
the Pacific Northwest lifestyle (combined with their own if applicable) which can be illustrated
by the “Whistler” brand itself. Lastly (not necessary), they will have multiple talents for
exploitation such as mountain biking or snowboarding and music. These will help sell the
lifestyle component of their brand as well as Zpod’s.
Not only will Zpods Artist Management component organize the career of local musicians
but it will also alleviate the task of finding talent for corporate events, local festivals and
venues. It will help build and foster a healthy musical artist pool of talent to exploit in the
Whistler market and beyond.
Value to Music Production and Content Creators:
Zpods Audio Visual and Production Services will alleviate the need to look to external more
expensive markets for quality services. Whistler is home to many content creators which can
utilize Zpods services. Some examples of these companies are Whistler Blackcomb Ski
Resort, Origin Media Group, Sherpas Cinema and the Whistler Arts Council. Zpod has an
existing network of key players whom it has worked with in the past on short films and
advertising content providing professional post-production. Zpod was involved in the sound
design for “Ramshackle Blues” which won the Viewer’s Choice Award in the 2018 B-Grade
Horror Film Festival. Content creators can take advantage of Zpods professional recording,
mixing and mastering facility as well as artists signed to Zpod Artist Management and
distribution contracts in regards to supplying licensed music for creative content. This will act
as a gain for the local artist community promoting local talent and building a solid
professional artistic community instead of looking elsewhere for similar services.
3.2 Pricing Policy
Zpod Artist Management:
Pricing for Artist Management services will vary between contracts but will to start
the negotiation process it will be based on a percentage basis of 15% of gross
earnings for a 360-degree agreement with a minimum term of one year with option
to renew. Should the option not be renewed after one year the commission
structure will fall to 3-5% of gross earnings on a 360-degree deal and will continue
for three to five years. The idea is to help professionally develop artists careers but
also create a volume business that continues beyond contractual obligations.
Zpod Audio/Visual Services:
These services will be based mainly on a per hour billable basis that are outlined below.
•
Recording, Mixing and Post Production services will be charged at a rate of $60 per
hour.
•
Mastering Services will be charged at a rate of $85 per song
Zpod Live Entertainment/Event Design:
These services will be broken down as follows:
•
•
•
•
Event Consultation Fee $200
Event Design $60 per hour
Event Technical Labour $30 per hour (in line with local rates)
Live Entertainment rates will range from $250 for singer songwriters as much
as $10,000 for larger musical acts.
Zpod Publishing, Music Synchronization and Distribution:
•
•
These agreements will be dependent on whether artists are signed to Zpod
Management Agreements and will be based on a commission structure
between 15%-25% earnings.
Zpod will have the ability to distribute musical content through online
aggregators such as Distrokid.
3.3 Market Positioning
Zpod Entertainment Company offers a unique value offering that is not offered by
any other company in Whistler despite a demand for these offerings. There are
similar companies such as small home recording facilities and small to large
corporate event firms and no Artist Management Companies. None offer the mix of
services that Zpod offers. Please see the three Market Positioning Maps below that
outline key players and similar businesses in the primary, secondary and global
markets.
Figure 2:
Primary Market Positoning
High Similar
Value Offering
Freeman Audio
Visual
WMN Studios
Heat Rock Studios
Giibbons Whistler
XL Audio
Sherpa Cinema
Sharai Rewels Films
Squamish lil'Wat
nation
Whistler Media
Origin Media
Group
Pemberton Arts
Coast Mountain
Tourism Whistler Whistler Arts Council
Whistler Blackcomb
Council
Photography
Low Similar
Value Offering
PSAV
High Price
Low Price
Zpod Entertainment
Company
Figure 3:
Secondary Market Position
High Similar
Value Offering
Zpod Entertainment
Company
Warner Music
Canada
Network Music
Group
Low Price
Bardel
Siegal
Freeman
Entwrtainment
Entertainment
Audio
Group
Visual
Universal Artists Deluxe Vancouver
MonarchThe
Studios
Feldman
PSAV Agency
Management
Ltd.
TheWarehouse
Omni Film
Blue Light Studio
Entertainment
Studio
Fader Mountain
Soundhouse
Hyvetown
Railtown
Studios
CPS Mastering
Mastering
Music Inc
Sound
Jeff Turner
Post Modrn Sound
Entertainment Group
Low Similar
Value Offering
High Price
Network
Entertainment Group
Figure 4:
Global Market Position High Similar
Value Offering
Pure Audio
Earwig Studio
Electro Kitty
Lightheared
Recording Studio
Entertainment
Atrium
Entertainment
Agency
Low Similar
Value Offering
3.4 Customer Segmentation
Zpods main buyer groups fall into three categories which are musicians, audio visual content
creators and live events/entertainment. Zpod clients are those looking for professional audiovisual services including recording, mixing, mastering and post production as well as
established artists looking to further a career in the music business and need professional artist
management. Zpods ideal clients would be those who want one or more of these services and
could take advantage of bundled services. Zpod will target all content creators for music, film,
television, social media advertising, live event producers and live music venues.
The geographic areas Zpod will target are in the Sea to Sky corridor which includes Whistler
(primary market), Squamish and Vancouver (secondary markets) extending internationally.
Zpod wants to add financial value to the global market who mostly can take advantage of the
favorable exchange rates. The United States market specifically the Pacific North West can
take advantage of the favorable exchange rate which adds incredible value for high caliber
services.
High Price
Warner Music
Canada
Low Price
Zpod Entertainment
Company
Customer Data
Testimonials:
“Hey team,
So happy with this, Eddy. Really good on all the fixes.
One little thing I noticed:
Something a bit odd happened on the line "Just telling fucking Carla here how you and me shot our..."
when Pearl speaks? Volume dips down briefly mid dialogue.
Otherwise, sounds amazing! Really stoked. Thanks for being diligent with all my notes.
When you are ready, please do send it over to Erica and she'll finalize the credits.
Yeeehaw, this movie is looking and sounding amazing. Super proud of you guys and all your hardwork.
Luv,
Sharai Rewels Films”
4. Business Environment
4.1 Major Trends Canada:
“Propelled along by a steady growth in audio streaming, Canada’s music industry is
enjoying a strong second half to the decade... though it has one eye on improving its
standing in the YouTube-dominated VOD sector” - Music Ally
Canada still has some catching up to do in the streaming world as far as volume but this is an
opportunity to capitalize as the streaming industry grows. Due to Canadian fiscal
governmental support to aide in increasing Canadian music revenues there is great
opportunity especially in British Columbia where Zpods is located. Music BC, Creative BC,
Factor and Canadian Music Fund are all valuable resources Zpod can utilize to help not only
Zpod itself but Zpod clients as well as the industry continues to catch up.
Some interesting trends from 2016 to 2017 include a 25% growth in Vinyl sales and a 22%
decrease in CD sales. Digital sales dominate the market with just under $370 million in sales
and the total combined sales rose 14% indicating a healthier industry on a whole.
Some trends to focus on are the gaming industry augmented reality/virtual reality industry.
27% of Canadians employed in the gaming industry are located in BC and there are 1300
digital media companies within BC. The growth rate of the AR/VR industry is expected to grow
13X from 2017 to 2020. This is definitely an area that Zpod will focus on. Zpod has already
begun to research and develop ideas for Augmented Reality media.
4.2 Market Size:
Canada’s market size is 7th among the top ten music markets in the world. British
Columbia is the third largest music market in Canada and faces tough competition
from Toronto and Montreal. Despite this Vancouver, BC is the 3rd largest film and TV
production center in North America. This is largely due to its proximity to California
as well as tax incentives and advantageous currency exchange rate. Zpod hopes to
capitalize of these benefits by targeting its secondary market which is Washington
and Oregon in the US.
4.3 Business Competition
The key dimension of Zpods competitors are that they are mostly not twosided businesses and do not offer the services Zpod provides. This is Zpods
advantage as we can provide bundled services that spread across many
client’s needs. For example, our main competitor for live entertainment in
Whistler is XL Audio. They only supply audio visual rental solutions for events.
Zpod would offer the talent and audio-visual elements for the event. Zpod
would also receive income from the Artist Management commissions agreed
upon with the Artist under contract.
4.4 SWOT Analysis
Strengths:
•
•
•
•
•
•
•
Over 20 years experience
Educated in Audio Engineering, Mastering and Post Production, Film Studies and
Global Entertainment and Music Business
Low Overhead compared to competitors
Professional quality audio equipment
Seasoned knowledge in Live events Management
Solid Knowledge of primary and Secondary Markets.
Unique needed services under one roof.
Weaknesses:
•
•
•
Not a large inventory of Live event equipment and audio-visual re-enforcement
Only one employee at the moment
Not a large recording facility compared to competitors
Opportunities:
•
Growing streaming industry in Canada
•
•
•
•
•
•
Growing VOD industry in Canada
Fiscal Support from Provincial and Federal Government
Favorable Exchange Rates of foreign Currencies.
Tax incentives for Canadian Businesses as well as foreign businesses
Growing Primary Market
Resort Municipality budget is large for entertainment
Threats:
•
•
•
•
•
Global business target Zpod markets
Vasil Resorts (USA) owns Whistler Blackcomb now
Canadian dollar could potentially improve making a non-favorable exchange rates
Foreign Government Tax
Piracy
4. Financial Projections
4.1 Required Capital
The required capital in regards to operating expenses needed for Zpod’s first year of business
is based on the knowledge of ten years of living in the Whistler area. The rent is based on an
11% allotment in accordance with British Columbia business regulations for home-based
businesses , which Zpod will remain for the foreseeable future.
Zpod plans to utilize $100 dollars per month for the first year. Zpod plans to use social based
marketing strategies in the primary and secondary markets for the first year.
The salary to be paid was based on a minimum amount of what is needed to sustain the
mortgage of the and livelihood of the owner. There will only be one employee for the first
year.
The subscription software needed will be Adobe Photoshop, After Effects and Pro Tools.
Zpod already owns many assets needed for operation but would make some key additions in
the first year. The goal is to finance these items through Long and Mcquade which offers 0%
- 2.5% financing on gear. That is how most of Zpods assets were initially acquired. Zpod will
add a Universal Audio Accelerator package to improve it’s “in the box” processing power for
mixing, mastering and post-production. It will also augment and improve its monitoring by
purchasing Genelec 4” 8030 studio monitors and an Adam Audio 10” sub-woofer. It will also
improve Zpods studio by adding a Primacoustic ceiling cloud. Zpod also plan plans to update
it’s studio desk to a Zaor Yesk Studio Desk which will improve the use of space in the studio.
Zpod will not incur any banking fees as the business account will be with Royal Bank of Canada
who offers an online “e-account” to its current clients. Zpod knows from experience that most
payments will be made by check or cash.
All taxes are based on British Columbia Payroll Tax deductions which include Canada Pension
Plan and Employment Insurance (6.72% total).
The initial capital needed for launch is feasible and is based on years of experience living in
the area. The goal for the first year is to buy key but minimal gear to update an existing
professional inventory of gear needed for operation. During this year Zpod will work hard to
expand on it’s Audio Visual, Event and Performer offerings building key networks and
relationships to implement these additions in the second year.
Fig 1.1
Amount Per Month
For 12 Months
Monthly Fixed Expenses:
Operating
Expenses
(OPEX)
Accounting and Banking
$9.80
Marketing and Advertising
$100.00
Rent
$200.00
Supplies/Stationary/Business Cards/Flyers
$10.00
Telephone & Utilities
$60.00
Internet & Web-Hosting
$50.00
Electricity
$30.00
Subscription for software
$100
Salaries (include owner) Payroll Taxes at 5.10% (CPP)/1.62%(EI)
$1,500.00
Monthly Fixed Expenses Sub-total (I)
$2,059.80
$117.60
$1,200.00
$2,400.00
$120.00
$720.00
$600.00
$360.00
$1,200.00
$18,000.00
$24,717.60
Asset Purchases:
Capital
Expenses
(CAPEX)
Software/Hardware/Apps
$0.00
Furniture etc.
$0.00
$3,500.00
$1,863.00
Asset Purchase Sub-Total (II)
Startup Expenses You Pay Once:
$384.00
Business Registration
$384.00
Startup Expenses You Pay Once Sub-total (III)
$384.00
$5,747.00
TOTAL EXPENSES (I+II+III)
$2,443.80
$2,688.18
$30,464.60
$33,511.06
Contingency (10%)
Total Estimated Cash Needed to Start For 12 Months (TOTAL EXPENSES +10%)
$33,511.06
4.2 Pro-Forma Balance Sheet
Year one of the balance sheet is based on the income earned from the earnings of Valley Crow
over the past few years. Valley Crow is an entertainer but also the owner Eddy Hugill. Valley
Crow will finance the initial capital for the business and Zpod will invoice on behalf of Valley
Crow. These numbers are based on actual financial data and based on a part-time basis
because at the time Eddy was also working Full-Time as an audio-visual manager. Zpod feels
it could increase this value by the second year by 15%. Valley Crow would be the main “cash
cow” for Zpod in its first year while expanding its other offerings for implementation in the
second and third years of business.
The cash on hand will be due to personal investment. Zpod plans to invest in “new tech stocks”
such as Tencent Music and Augmented Reality to help grow its capital with other scalable
offerings.
There are no inventories in stock no accounts receivable or prepaid expenses.
Fixed Assets are based on the 11% allotment for home-based businesses workspace. $33500
is for an 8 x 10 ft workspace. Zpod has estimated it owns about $6000 of professional audio
equipment and will depreciate for a useful life of ten years with a salvage of half the total value.
In year two, Zpod plans to grow its Valley Crow and Studio services income by 20%. It also
plans to sign its first artist for management portion of the business. Zpod estimates using the
Valley Crow numbers that it could generate the same amount of income in it’s first year of
management for the artist. Zpod would take 15% of the total earnings brining in approximately
$3144.00 of new revenue. Zpod will also add another artist by year three and the estimated
increase will be the same for each artist.
During year two Zpod plans to crowd fund its Orca Audio Visual experience with a goal of
$15,000 and look for investors for the project. Zpod estimates it will need about $80,000 for
the project.
You will notice that a 3% COLA increase to salary has been applied across the years.
By year three Zpod plans to increase the revenue by another 20% as well as add another
artist to its roster increasing the same amount as the first artist in year two.
Fig 1.2
Balance Sheet
Year 1
1
Year 2
Year 3
ASSETS
Current Assets
Cash
Investments
Accounts receivable
Inventories
2
Prepaid expenses
Fixed Assets
3
4
Building
Equipment
Accumulated depreciation
Intangibles
TOTAL ASSETS
50,000.00
1,000.00
45,942.00
2,000.00
48,210.00
3,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
33,500.00
6,000.00
(300.00)
384.00
90,884.00
33,500.00
11,363.00
(568.00)
0.00
92,237.00
33,500.00
11,363.00
(568.00)
0.00
95,505.00
LIABILITIES and OWNER'S EQUITY
Current Liabilities
Accounts payable
5
6
7
Long-term Liabilities
Bank loans
Owner's Equity
8
Invested Capital
Accumulated retained earnings
Total Owner's Equity
TOTAL LIABILITIES and EQUITY
(18,000.00)
(18,540.00)
(19,096.00)
0.00
0.00
0.00
50,000.00
(10057)
39,943
57943
45,942.00
(4,951.30)
40,990.70
59530.70
48,210.00
2,417.97
43,408.67
62504.67
4.3 Pro-Forma Income Statement
Zpod plans to price the offer on a per contract basis but can utilize values from past experience
to estimate.
Artist Management:
Valley Crows revenues are based on a $250 per gig fee which is the going rate for venues in
and around Whistler for solo artist. Corporate events offer anywhere from $500 to $1000 plus
expenses for a solo artist. Under Zpod Management the commission rate will be 15% of gross
earnings.
Fig 1.3
Income Stament (As of DECEMBER 2019)
Year 1
1
2
28,296.00
37,151.00
- Cost of Sales / COGS
(6,563.00)
(7,219.30)
(7,941.23)
GROSS PROFIT
20,960.00
28,296.00
37,151.00
(24,717.60)
(25,460.00)
(26,223.80)
- Depreciation Expenses
4
(300.00)
(568.00)
(568.00)
(4,057.60)
2,268.00
10,359.20
-/+ Dividends and Interest Income
0.00
0.00
0.00
- Interest Expense
0.00
0.00
0.00
(4,057.60)
2,268.00
10,359.20
2%
2%
2%
(10,057.00)
(4,951.30)
2,417.97
OPERATING PROFIT (EBIT)
PROFIT BEFORE TAXES
Taxes
5
Year 3
20,960.00
- Administrative Expense / SG&A
3
Year 2
Revenue
NET PROFIT
Audio Visual Services:
AV consultations @ $50.00
$40 per hour of work in studio for mixing and $85 per song for mastering.
Event Services:
-
$30 and hour for technician rate.
Orca AV Experience estimated at about $15000 per event which includes all
equipment. This will not be implemented until year 4.
4.4 Pro-Forma Cash Flow Statement
Fig 1.4
Revenue Streams:
Mixing/Mastering
CWA GIG (Valley Crow)
MUSO
ENTERTAINMENT
PEMBERTON Farmers
Market
Management
Freelance AV
Cash-Flow Statement (For the first 6-month)
Month
Month
Month
Month
Pre-Startup
1
2
3
4
150
180
216
259.2
1800
1800
1800
1800
Total Income
Expenses:
One time fee
Monthly Fixed Expenses
Personal Investment
$50,000.00
Total
$49,616.00
Month
5
311.04
1800
Month
6
373.248
1800
250
250
250
250
250
250
180
0
300
180
0
300
180
0
300
180
0
300
180
0
300
180
500
300
2680
2710
2746
2789.2
2841.04
3403.25
-2059.8
-2059.8
-2059.8
-2059.8
-2059.8
-2059.8
620.2
650.2
686.2
729.4
781.24
1343.45
-$384.00
Fig 1.5
Cash-Flow Statement (as of DECEMBER 2016)
Year 1
Year 2
Year 3
INFLOW AND OUTFLOW
1
Funds provided by:
Receipts #1
$ 20,960.00
$ 28,296.00
Crowdfunding
$ 15,000.00
Personal Investment
2
$ 37,151.00
Investment
TOTAL FUNDS IN
Funds used for:
Cost of goods acquired
Payroll
SG&A
Interest expense
Rent
Building and equipemnt
Depreciation
Long-term debt reduction
TOTAL FUNDS OUT
$ 50,000.00
$ 45,942.00
$ 40,990.70
$ 70,960.00
$ 74,238.00
$66 000
$ 93,141.70
$ 6,563.00
$ 24,717.60
$ 24,717.60
$
-
$ 7,219.20
$ 18,540.00
$ 25,460.00
$
-
$ 7,891.23
$ 19,096.00
$ 26,223.60
$
-
$ 2,400.00
$
300.00
$
$ 58,698.20
$
$
$
$
$ 54,187.20
$ 56,178.83
$ 12,261.80
$ 20,050.80
$ 36,962.87
$ 50,000.00
$ 1,000.00
$ 12,261.80
$ 45,942.00
$ 2,000.00
$ 20,050.80
$ 40,990.70
$ 3,000.00
$ 36,962.87
2,400.00
568.00
2,400.00
568.00
3
4
5
NET CHANGE IN CASH POSITION (Total
Funds In - Total Funds Out)
CHANGES BY ACCOUNT
Changes in Liquid Assets
Cash
Investment Portfolios
TOTAL CHANGES
Period
`Net Present Value
NPV Rate
10%
NPV Total
$149,465.29
1
$55,488.75
2
$57,013.67
3
$36,962.87
4.5 Cash Burn Rate
Zpod has a manageable daily cash burn rate of about $92 and approximately $2800
monthly.
Daily cash burn rate
Monthly cash burn rate
$91.81
$2,792.59
5. Risks
Some of the risks that Zpod could face is losing any of its revenue streams especially Valley
Crows. But this is unlikely due to a solid relationship with clients whom VC is a resident
musician for. Zpod could also face a slow growth rate in its AV services as there is heavy
competition in secondary market. Finding Artists to manage and willing to put the time and
effort in could pose a risk to the management portion of the business. Another risk that seems
to be increasing is the risk of forest fires in the area which could potentially disrupt business
operation.
Appendix
Figure 6:
Figure 7:
Figure 8:
Figure 9:
Figure 10:
Figure 11:
Figure 12:
Figure 13:
Figure 14:
The Orcas living in the waters of the Pacific North West are an incredible species. They are
truly the dominant predators namely because of their incredible intelligence, skill and team
effort within the Pod. Each Orca within a Pod works together for the greater good and success
of the Pod. Zpod Entertainment Company draws inspiration from the Orca where that each
service provided will aim to work harmoniously together for the success of each client within
the Zpod.
Zpod is an Entertainment Services Company primarily focusing on the needs of artists and
content creators within the niche market of Whistler, British Columbia, Canada. Whistler is a
premiere destination resort with millions of visitors each year. It sustains numerous
events/conferences, musical concerts and entertainment related initiatives and is one of the
biggest economic centers of British Columbia. It is also in close proximity to Canada’s second
largest entertainment center which is the City of Vancouver.
Zpod is eager to grow its already existing network of cliental and provide creativity,
professionalism and dedication to its new and existing clients.
The business plan for Zpod Entertainment Company Limited will outlay the direction it is
heading, market information, ideas for growth as well as financial projections.
Company Overview
Zpod Entertainment Company Ltd will utilize a two-sided business model focusing on four
areas of business including Zpod Audio Visual Services (mixing, mastering, post-production),
Artist Management and Consultation, Live Event Creative Services (audio visual) and Music
Synchronization.
Zpod entertainment company’s mission is to provide a professional “one stop shop” for
entertainers looking to develop their talents into careers. Zpod will focus on content creators
in the digital media industries including music, video, gaming and new technologies. It will
also sign and develop and manage artists utilizing Zpod’s extensive depth of experience.
Zpod has over twenty years of experience in both back and front ends of the industry which is
a main competitive advantage. Zpods location is also one of the top three Film and TV
production centers in North America as well as a hub for the gaming and future entertainment
technologies.
Business Environment/Customer
The analysis proceeds by assessing the market in which the company functions, the products
it currently offers or plans to offer in the future, and the characteristics of current or potential
customers.
Zpod will operate in the digital media industry in Canada. It will be located in the sea to sky
corridor in British Columbia. This is the third largest music hub in Canada. It has a growing and
booming gaming industry and is considered “Hollywood North” due to the high volume of
United Stated film industry clients.
The market is also beneficially supported by the government and various fiscally useful
organizations such as Creative BC, Music BC, Factor and many others.
Zpod also plans to expand its services into augmented reality technologies in the near future.
It is with no doubt that these new technologies provide incredible opportunity for the
entertainment industry. These will be artist focused AR technologies as well as AR for live event
implementations.
Marketing Strategy
Our marketing strategy will focus on cultivating a clientele in the music mixing and mastering
industries but offer bundled services to add value. For example, Artist who use our mixing
mastering services can also become part of our music synchronization catalogue. Artist who
want mixing services can also get the mastering at no extra cost. Artist signed under
management can also utilize our live event creative services department.
Zpod plans to enter the augmented reality market within the first two years of business. The
growth rate of this industry is projected to be massive over the next few years in BC.
1. About: ZPOD ENTERTAINMENT COMPANY
1.1
Name/Brands
ZPOD ENTERTAINMENT COMPANY focuses on four major areas including Audio/Visual
Services (mixing/mastering/recording/post-production), Live Entertainment and Event
Design Production, Artist Management/Consulting and Music Publishing.
All of these services areas will work harmoniously together and will include a variety of
brands including:
Zpod Audio/Visual Services:
• Zpod Studio (recording, mixing, mastering, sound design and post-production)
• Zpod Blog (music and film industry informative blog)
• Zpodcast and Social Media Content Production
Zpod Live Entertainment/Event Design:
• Valley Crow –Valley Crow is a live entertainer in Whistler, British Columbia
inspired by Whistler and the Sea to Sky Corridor.
•
Orca – an immersive audio/visual experience designed to create awareness
for the need to protect the Orca’s in the Pacific North West. Orca is
designed to travel with music festivals as an added value for the festival
experience.
Zpod Artist Management:
Administering and managing musical artists within Whistler Ski Resort and the Sea to
Sky Corridor. Focusing on obtaining 360 deals with Artists that include everything
from the mixing phase all the way to publishing.
• Valley Crow
• Terrifier/Jenna Mae/Marble Canyon
• Orca
Zpod Publishing:
• Establish a catalogue of music to distribute and acquire “sync” contracts
focusing directly on the extreme sports entertainment industry.
Existing Catalogue:
1. Rapido (Pistols at Dawn) – Alternative Rock band from Vancouver B.C.
o https://rapido.bandcamp.com/
2. Valley Crow – presently working on an EP for release summer 2019
3. Orca – Music for the Orca immersive audio/visual experience
Sector:
Arts and Entertainment - 711 – Performing Arts, Spectator Sports and Related
Industries.
1.2
Legal form
Limited Company (as described on the British Columbia Government Website)
Incorporated Companies
In B.C., incorporation creates a legal entity known as a corporation, commonly referred to as a
company. Three types of companies may be created through incorporation:
•
•
•
Limited company (most common)
Unlimited liability company
Community contribution company
What Incorporation Means
Companies are incorporated in B.C. under the Business Corporations Act. The Act gives incorporated
companies:
•
•
All the powers of an individual
An independent existence – separate and distinct from its shareholders
•
An unlimited life expectancy
A company can acquire assets, go into debt, enter into contracts, sue or be sued.
1.3
State of registration
Zpod will be registered in British Columbia, Canada because BC is home to Zpod’s main
target demographic and clientele which is Whistler, British Columbia. BC is also Canada’s
second largest entertainment hub next to Toronto. This is largely due to Vancouver being
“Hollywood North” and it’s close proximity to major entertainment hubs of the USA such as
Seattle, Portland and Los Angeles. Many US entertainment sector companies look to Canada
for creative services mainly due to the Tax incentives, the Value of the US dollar and the
professionalism found in Canadas entertainment sector. These ingredients add excellent
value.
1.4
Core Activity/Competitive Advantage
Zpod’s will focus on all activities from the mixing phase of music production continuing to
the distribution and musical asset management. All of these services will work harmoniously
in a linear fashion. Each brand of the business will add value to each other. For example, a
client who requires service for mixing could also receive mastering at no added cost. An
artist signed to a Management Agreement would also benefit from Zpod’s expertise in Event
design/production, publishing and distribution. A client needing sound design for a film or
commercial could also receive the mixing and mastering as an added value.
Value Chain:
Mixing – Mastering/Post-Production - Artist Management – Live Event Production/Design Publishing – Distribution
Zpod’s competitive advantage is that it will be located in Whistler B.C, one the most soughtafter ski/mountain bike resort destinations in the world. This is an advantage as similar larger
companies exist outside of Whistler and do not have the direct connection to the local
community. CEO of Zpod, Edward Hugill has lived and worked within the Entertainment
industry of Whistler for over ten years working alongside the major stakeholders of the resort
such as Tourism Whistler, Canadian Wilderness Adventures, The Whistler Arts Council and
the Resort Municipality of Whistler.
2. Corporate Identity
2.1
Main Stakeholders
Tourism Whistler
Vail Resorts (Whistler Blackcomb)
Origin Media
Sherpas Cinema
Whistler Arts Council
Gibbon’s Entertainment
The Resort Municipality of Whistler
Canadian Wilderness Adventures
The Adventure Group
Blackcomb Snowmobile
Sunwolf
Coast Mountain Photography
The Whistler Film Festival
Cornucopia Whistler
The Point Artist Centre
Sqaumish Lil’wat Nation
Sharai Rewels Films
2.2
Mission Statement
Zpod provides entertainment services to the niche demographic of Whistler, British
Columbia. Zpod’s mission is to provide professional entertainment services to all
stakeholders of the Resort Municipality of Whistler and beyond.
Unlike other Entertainment Service Companies, Zpod is located directly in Whistler, British
Columbia and already has a network of stakeholder connections. Zpod founder Edward
Hugill has worked and lived in Whistler for over ten years developing relationships and
working within the entertainment industry of Whistler. Zpod understands there is a need for
an entertainment service company and is eager to become a leader in the community.
2.3
Values/Mantra
Zpod’s mantra is best described by the following quote.
“Find creative ways to live your life and love everything and everyone around you” –
unknown author
Zpod’s core values are first and foremost creativity, professionalism and dedication. Zpod
will strive to be the most creative, professional and dedicated to our clients and their needs.
2.4
Visual Identity
Slogan:
Join the Pod!
Logo:
2.5
Communication
Printed:
Digital:
o
o
o
Pique Newsmagazine is Whistlers go to printed news publication. It
reaches thousands of locals as well as thousands or tourists every year.
o
Mountain Life Magazine – Whistler’s most circulated Magazine
Publication. MLM has articles and advertisements dedicated to the
mountain couture of Whistler.
Social Media: Facebook/Youtube/Spotify/Instagram
Website:
o
zpodmusic.com (domain has been registered and website is currently being
built.
Audio/Video:
§ Ramshackle Blues - Film (Viewers Choice Award Winner, B-Grade
Horror Film Fest 2018 - https://vimeo.com/297865706
(password = buckshot) please do not distribute.
•
Sound Design/Mixing/Mastering
§
Hope - The Documentary 2018 - Mastering
https://www.kickstarter.com/projects/hopethedocumentary/hopethe-documentary-0
§
Words of Wisdom – Documentary Film – Mixing and Mastering
§
Valley Crow Promo https://www.youtube.com/watch?v=tZFOt_wQHRo
§
https://soundcloud.com/user-555976464
§
https://rapido.bandcamp.com/
3. ZPOD Entertainment Offering
3.1 Value Proposition
ZPOD ENTERTAINMENT COMPANY has a solid understanding of its unique primary market
of the Resort Municipality of Whistler, British Columbia, Canada, the secondary market of
Vancouver, B.C and extending to the global entertainment market. Zpod realizes the need
for a two-sided entertainment company specializing in the development and management of
musical content creators and performers as well as audio visual support for the live
entertainment sector in these markets. Zpod is a conduit connecting the content creators to
the live event support industry. This connection is valuable to all clients as services can be
combined into bundles creating a competitive attractive offering. Zpod will focus on these
two-sides with four business entities which include:
Figure 1: Business Model
Musical Content
Production Development
and Management
Two Sided
Audio Visual Services
for Live Entertainment
Artist
Management
Publishing
and
Distributio
n
Audio Visual
Production
Services
Live
Entertainmen
t and Event
Support
Value to Musical Content Creators and Live Entertainment and Event Sector:
Zpod’s value lye in its extensive experience and knowledge in the audio-visual production
industry. Zpod’s founder, Edward Hugill, has over twenty years of experience in the
recording and performing arts and ten years in the audio-visual events industry at a
management level. His wealth of experience offers professional high-caliber services at
competitive pricing. Zpod also provides a magnitude of experience working professionally in
both the primary and secondary markets as content creator and audio-visual design and
event support and which in turn flows into the global arena.
Artists, content creators, entertainers and event producers can all benefit from Zpods value
offering in the primary market due to Zpods deep understanding of the entertainment micro
climate within Whistler.
Value to the Live Entertainment and Event Sector:
Event producers can take advantage of Zpod ‘s Live Entertainment Event Support and
Design Services. Although the resort is built for outdoor enthusiasts this creates a need for
entertainment services. Whistler is one of North Americas premiere destination resorts which
hosts a plethora of recurring annual events throughout the year including The World Ski and
Snowboard Festival, Wanderlust, Cornucopia, The Whistler Beer Festival and Whistler Film
Festival. As an indication of entertainment infrastructure, the resort was host to the 2010
Winter Olympics. Whistler also hosts high end corporate events throughout the year and has
been host to such companies as Mozilla, TedX and Electronic Arts FIFA tournament. There is
certainly a pain felt for event producers whom must pay outrageous commissions and high
fees to Zpod event support competitors. Zpod clients gain from our low overhead and
benefit from our vast event production experience and knowledge of the areas event
industry.
Not only will Zpod service the event sector in Whistlers tourism industry but also utilize years
of event production knowledge to design and implement Zpod Social Responsibility Events.
These events will serve social movements and organizations. This will alleviate some of the
stress felt by the local community due to the over saturation of corporate events in the area
and instead focus on the importance and value that socially responsible events can add. For
example, Zpod will produce an Earthdance event for the Fall of 2020. Earthdance events
take place globally on the same day and involve a synchronized collective global meditation.
These events raise money for social movements and charities of the event producer’s choice.
Zpod is also designing an immersive audio-visual experience called Orca. A large half
spherical structure complete with internal LED walls and immersive sound that will travel with
festivals and large events promoting and educating event attendees about the importance
of these wonderful creatures while also raising money for their protection. This structure and
accompanied audio visual elements can also be reused for other immersive experiences in
the future.
The live entertainment and event sector will also find Zpods Artists Management services
advantageous. Founder, Edward Hugill has already been playing within Whistler and
surrounding areas for over ten years in various acts. Under the moniker Valley Crow he has
played around thirty plus shows a year as a resident act for a local outdoor tour company
called Canadian Wilderness Adventures. Valley Crow also frequents the Roundhouse at the
top of Whistler Mountain and has been hired as an entertainer for corporate events such as
Mozilla Firefox. Due to this experience Zpod has the knowledge and network of connections
that most musical artist do not in the area. Especially the newer musical residents whom
“come for a season”. The pain felt from not having the instant network in place can be
alleviated by using Zpod Artist Management. Zpod intends to sign musical artists and
entertainers under contracts and exploit their talents to the Whistler market and beyond.
These artists will have a niche combination of talents. Firstly, they will be artists, bands,
entertainers whom either write or perform songs to be exploited. Secondly, they exemplify
the Pacific Northwest lifestyle (combined with their own if applicable) which can be illustrated
by the “Whistler” brand itself. Lastly (not necessary), they will have multiple talents for
exploitation such as mountain biking or snowboarding and music. These will help sell the
lifestyle component of their brand as well as Zpod’s.
Not only will Zpods Artist Management component organize the career of local musicians
but it will also alleviate the task of finding talent for corporate events, local festivals and
venues. It will help build and foster a healthy musical artist pool of talent to exploit in the
Whistler market and beyond.
Value to Music Production and Content Creators:
Zpods Audio Visual and Production Services will alleviate the need to look to external more
expensive markets for quality services. Whistler is home to many content creators which can
utilize Zpods services. Some examples of these companies are Whistler Blackcomb Ski
Resort, Origin Media Group, Sherpas Cinema and the Whistler Arts Council. Zpod has an
existing network of key players whom it has worked with in the past on short films and
advertising content providing professional post-production. Zpod was involved in the sound
design for “Ramshackle Blues” which won the Viewer’s Choice Award in the 2018 B-Grade
Horror Film Festival. Content creators can take advantage of Zpods professional recording,
mixing and mastering facility as well as artists signed to Zpod Artist Management and
distribution contracts in regards to supplying licensed music for creative content. This will act
as a gain for the local artist community promoting local talent and building a solid
professional artistic community instead of looking elsewhere for similar services.
3.2 Pricing Policy
Zpod Artist Management:
Pricing for Artist Management services will vary between contracts but will to start
the negotiation process it will be based on a percentage basis of 15% of gross
earnings for a 360-degree agreement with a minimum term of one year with option
to renew. Should the option not be renewed after one year the commission
structure will fall to 3-5% of gross earnings on a 360-degree deal and will continue
for three to five years. The idea is to help professionally develop artists careers but
also create a volume business that continues beyond contractual obligations.
Zpod Audio/Visual Services:
These services will be based mainly on a per hour billable basis that are outlined below.
•
Recording, Mixing and Post Production services will be charged at a rate of $60 per
hour.
•
Mastering Services will be charged at a rate of $85 per song
Zpod Live Entertainment/Event Design:
These services will be broken down as follows:
•
•
•
•
Event Consultation Fee $200
Event Design $60 per hour
Event Technical Labour $30 per hour (in line with local rates)
Live Entertainment rates will range from $250 for singer songwriters as much
as $10,000 for larger musical acts.
Zpod Publishing, Music Synchronization and Distribution:
•
•
These agreements will be dependent on whether artists are signed to Zpod
Management Agreements and will be based on a commission structure
between 15%-25% earnings.
Zpod will have the ability to distribute musical content through online
aggregators such as Distrokid.
3.3 Market Positioning
Zpod Entertainment Company offers a unique value offering that is not offered by
any other company in Whistler despite a demand for these offerings. There are
similar companies such as small home recording facilities and small to large
corporate event firms and no Artist Management Companies. None offer the mix of
services that Zpod offers. Please see the three Market Positioning Maps below that
outline key players and similar businesses in the primary, secondary and global
markets.
Figure 2:
Primary Market Positoning
High Similar
Value Offering
Freeman Audio
Visual
WMN Studios
Heat Rock Studios
Giibbons Whistler
XL Audio
Sherpa Cinema
Sharai Rewels Films
Squamish lil'Wat
nation
Whistler Media
Origin Media
Group
Pemberton Arts
Coast Mountain
Tourism Whistler Whistler Arts Council
Whistler Blackcomb
Council
Photography
Low Similar
Value Offering
PSAV
High Price
Low Price
Zpod Entertainment
Company
Figure 3:
Secondary Market Position
High Similar
Value Offering
Zpod Entertainment
Company
Warner Music
Canada
Network Music
Group
Low Price
Bardel
Siegal
Freeman
Entwrtainment
Entertainment
Audio
Group
Visual
Universal Artists Deluxe Vancouver
MonarchThe
Studios
Feldman
PSAV Agency
Management
Ltd.
TheWarehouse
Omni Film
Blue Light Studio
Entertainment
Studio
Fader Mountain
Soundhouse
Hyvetown
Railtown
Studios
CPS Mastering
Mastering
Music Inc
Sound
Jeff Turner
Post Modrn Sound
Entertainment Group
Low Similar
Value Offering
High Price
Network
Entertainment Group
Figure 4:
Global Market Position High Similar
Value Offering
Pure Audio
Earwig Studio
Electro Kitty
Lightheared
Recording Studio
Entertainment
Atrium
Entertainment
Agency
Low Similar
Value Offering
3.4 Customer Segmentation
Zpods main buyer groups fall into three categories which are musicians, audio visual content
creators and live events/entertainment. Zpod clients are those looking for professional audiovisual services including recording, mixing, mastering and post production as well as
established artists looking to further a career in the music business and need professional artist
management. Zpods ideal clients would be those who want one or more of these services and
could take advantage of bundled services. Zpod will target all content creators for music, film,
television, social media advertising, live event producers and live music venues.
The geographic areas Zpod will target are in the Sea to Sky corridor which includes Whistler
(primary market), Squamish and Vancouver (secondary markets) extending internationally.
Zpod wants to add financial value to the global market who mostly can take advantage of the
favorable exchange rates. The United States market specifically the Pacific North West can
take advantage of the favorable exchange rate which adds incredible value for high caliber
services.
High Price
Warner Music
Canada
Low Price
Zpod Entertainment
Company
Customer Data
Testimonials:
“Hey team,
So happy with this, Eddy. Really good on all the fixes.
One little thing I noticed:
Something a bit odd happened on the line "Just telling fucking Carla here how you and me shot our..."
when Pearl speaks? Volume dips down briefly mid dialogue.
Otherwise, sounds amazing! Really stoked. Thanks for being diligent with all my notes.
When you are ready, please do send it over to Erica and she'll finalize the credits.
Yeeehaw, this movie is looking and sounding amazing. Super proud of you guys and all your hardwork.
Luv,
Sharai Rewels Films”
4. Business Environment
4.1 Major Trends Canada:
“Propelled along by a steady growth in audio streaming, Canada’s music industry is
enjoying a strong second half to the decade... though it has one eye on improving its
standing in the YouTube-dominated VOD sector” - Music Ally
Canada still has some catching up to do in the streaming world as far as volume but this is an
opportunity to capitalize as the streaming industry grows. Due to Canadian fiscal
governmental support to aide in increasing Canadian music revenues there is great
opportunity especially in British Columbia where Zpods is located. Music BC, Creative BC,
Factor and Canadian Music Fund are all valuable resources Zpod can utilize to help not only
Zpod itself but Zpod clients as well as the industry continues to catch up.
Some interesting trends from 2016 to 2017 include a 25% growth in Vinyl sales and a 22%
decrease in CD sales. Digital sales dominate the market with just under $370 million in sales
and the total combined sales rose 14% indicating a healthier industry on a whole.
Some trends to focus on are the gaming industry augmented reality/virtual reality industry.
27% of Canadians employed in the gaming industry are located in BC and there are 1300
digital media companies within BC. The growth rate of the AR/VR industry is expected to grow
13X from 2017 to 2020. This is definitely an area that Zpod will focus on. Zpod has already
begun to research and develop ideas for Augmented Reality media.
4.2 Market Size:
Canada’s market size is 7th among the top ten music markets in the world. British
Columbia is the third largest music market in Canada and faces tough competition
from Toronto and Montreal. Despite this Vancouver, BC is the 3rd largest film and TV
production center in North America. This is largely due to its proximity to California
as well as tax incentives and advantageous currency exchange rate. Zpod hopes to
capitalize of these benefits by targeting its secondary market which is Washington
and Oregon in the US.
4.3 Business Competition
The key dimension of Zpods competitors are that they are mostly not twosided businesses and do not offer the services Zpod provides. This is Zpods
advantage as we can provide bundled services that spread across many
client’s needs. For example, our main competitor for live entertainment in
Whistler is XL Audio. They only supply audio visual rental solutions for events.
Zpod would offer the talent and audio-visual elements for the event. Zpod
would also receive income from the Artist Management commissions agreed
upon with the Artist under contract.
4.4 SWOT Analysis
Strengths:
•
•
•
•
•
•
•
Over 20 years experience
Educated in Audio Engineering, Mastering and Post Production, Film Studies and
Global Entertainment and Music Business
Low Overhead compared to competitors
Professional quality audio equipment
Seasoned knowledge in Live events Management
Solid Knowledge of primary and Secondary Markets.
Unique needed services under one roof.
Weaknesses:
•
•
•
Not a large inventory of Live event equipment and audio-visual re-enforcement
Only one employee at the moment
Not a large recording facility compared to competitors
Opportunities:
•
Growing streaming industry in Canada
•
•
•
•
•
•
Growing VOD industry in Canada
Fiscal Support from Provincial and Federal Government
Favorable Exchange Rates of foreign Currencies.
Tax incentives for Canadian Businesses as well as foreign businesses
Growing Primary Market
Resort Municipality budget is large for entertainment
Threats:
•
•
•
•
•
Global business target Zpod markets
Vasil Resorts (USA) owns Whistler Blackcomb now
Canadian dollar could potentially improve making a non-favorable exchange rates
Foreign Government Tax
Piracy
4. Financial Projections
4.1 Required Capital
The required capital in regards to operating expenses needed for Zpod’s first year of business
is based on the knowledge of ten years of living in the Whistler area. The rent is based on an
11% allotment in accordance with British Columbia business regulations for home-based
businesses , which Zpod will remain for the foreseeable future.
Zpod plans to utilize $100 dollars per month for the first year. Zpod plans to use social based
marketing strategies in the primary and secondary markets for the first year.
The salary to be paid was based on a minimum amount of what is needed to sustain the
mortgage of the and livelihood of the owner. There will only be one employee for the first
year.
The subscription software needed will be Adobe Photoshop, After Effects and Pro Tools.
Zpod already owns many assets needed for operation but would make some key additions in
the first year. The goal is to finance these items through Long and Mcquade which offers 0%
- 2.5% financing on gear. That is how most of Zpods assets were initially acquired. Zpod will
add a Universal Audio Accelerator package to improve it’s “in the box” processing power for
mixing, mastering and post-production. It will also augment and improve its monitoring by
purchasing Genelec 4” 8030 studio monitors and an Adam Audio 10” sub-woofer. It will also
improve Zpods studio by adding a Primacoustic ceiling cloud. Zpod also plan plans to update
it’s studio desk to a Zaor Yesk Studio Desk which will improve the use of space in the studio.
Zpod will not incur any banking fees as the business account will be with Royal Bank of Canada
who offers an online “e-account” to its current clients. Zpod knows from experience that most
payments will be made by check or cash.
All taxes are based on British Columbia Payroll Tax deductions which include Canada Pension
Plan and Employment Insurance (6.72% total).
The initial capital needed for launch is feasible and is based on years of experience living in
the area. The goal for the first year is to buy key but minimal gear to update an existing
professional inventory of gear needed for operation. During this year Zpod will work hard to
expand on it’s Audio Visual, Event and Performer offerings building key networks and
relationships to implement these additions in the second year.
Fig 1.1
Amount Per Month
For 12 Months
Monthly Fixed Expenses:
Operating
Expenses
(OPEX)
Accounting and Banking
$9.80
Marketing and Advertising
$100.00
Rent
$200.00
Supplies/Stationary/Business Cards/Flyers
$10.00
Telephone & Utilities
$60.00
Internet & Web-Hosting
$50.00
Electricity
$30.00
Subscription for software
$100
Salaries (include owner) Payroll Taxes at 5.10% (CPP)/1.62%(EI)
$1,500.00
Monthly Fixed Expenses Sub-total (I)
$2,059.80
$117.60
$1,200.00
$2,400.00
$120.00
$720.00
$600.00
$360.00
$1,200.00
$18,000.00
$24,717.60
Asset Purchases:
Capital
Expenses
(CAPEX)
Software/Hardware/Apps
$0.00
Furniture etc.
$0.00
$3,500.00
$1,863.00
Asset Purchase Sub-Total (II)
Startup Expenses You Pay Once:
$384.00
Business Registration
$384.00
Startup Expenses You Pay Once Sub-total (III)
$384.00
$5,747.00
TOTAL EXPENSES (I+II+III)
$2,443.80
$2,688.18
$30,464.60
$33,511.06
Contingency (10%)
Total Estimated Cash Needed to Start For 12 Months (TOTAL EXPENSES +10%)
$33,511.06
4.2 Pro-Forma Balance Sheet
Year one of the balance sheet is based on the income earned from the earnings of Valley Crow
over the past few years. Valley Crow is an entertainer but also the owner Eddy Hugill. Valley
Crow will finance the initial capital for the business and Zpod will invoice on behalf of Valley
Crow. These numbers are based on actual financial data and based on a part-time basis
because at the time Eddy was also working Full-Time as an audio-visual manager. Zpod feels
it could increase this value by the second year by 15%. Valley Crow would be the main “cash
cow” for Zpod in its first year while expanding its other offerings for implementation in the
second and third years of business.
The cash on hand will be due to personal investment. Zpod plans to invest in “new tech stocks”
such as Tencent Music and Augmented Reality to help grow its capital with other scalable
offerings.
There are no inventories in stock no accounts receivable or prepaid expenses.
Fixed Assets are based on the 11% allotment for home-based businesses workspace. $33500
is for an 8 x 10 ft workspace. Zpod has estimated it owns about $6000 of professional audio
equipment and will depreciate for a useful life of ten years with a salvage of half the total value.
In year two, Zpod plans to grow its Valley Crow and Studio services income by 20%. It also
plans to sign its first artist for management portion of the business. Zpod estimates using the
Valley Crow numbers that it could generate the same amount of income in it’s first year of
management for the artist. Zpod would take 15% of the total earnings brining in approximately
$3144.00 of new revenue. Zpod will also add another artist by year three and the estimated
increase will be the same for each artist.
During year two Zpod plans to crowd fund its Orca Audio Visual experience with a goal of
$15,000 and look for investors for the project. Zpod estimates it will need about $80,000 for
the project.
You will notice that a 3% COLA increase to salary has been applied across the years.
By year three Zpod plans to increase the revenue by another 20% as well as add another
artist to its roster increasing the same amount as the first artist in year two.
Fig 1.2
Balance Sheet
Year 1
1
Year 2
Year 3
ASSETS
Current Assets
Cash
Investments
Accounts receivable
Inventories
2
Prepaid expenses
Fixed Assets
3
4
Building
Equipment
Accumulated depreciation
Intangibles
TOTAL ASSETS
50,000.00
1,000.00
45,942.00
2,000.00
48,210.00
3,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
33,500.00
6,000.00
(300.00)
384.00
90,884.00
33,500.00
11,363.00
(568.00)
0.00
92,237.00
33,500.00
11,363.00
(568.00)
0.00
95,505.00
LIABILITIES and OWNER'S EQUITY
Current Liabilities
Accounts payable
5
6
7
Long-term Liabilities
Bank loans
Owner's Equity
8
Invested Capital
Accumulated retained earnings
Total Owner's Equity
TOTAL LIABILITIES and EQUITY
(18,000.00)
(18,540.00)
(19,096.00)
0.00
0.00
0.00
50,000.00
(10057)
39,943
57943
45,942.00
(4,951.30)
40,990.70
59530.70
48,210.00
2,417.97
43,408.67
62504.67
4.3 Pro-Forma Income Statement
Zpod plans to price the offer on a per contract basis but can utilize values from past experience
to estimate.
Artist Management:
Valley Crows revenues are based on a $250 per gig fee which is the going rate for venues in
and around Whistler for solo artist. Corporate events offer anywhere from $500 to $1000 plus
expenses for a solo artist. Under Zpod Management the commission rate will be 15% of gross
earnings.
Fig 1.3
Income Stament (As of DECEMBER 2019)
Year 1
1
2
28,296.00
37,151.00
- Cost of Sales / COGS
(6,563.00)
(7,219.30)
(7,941.23)
GROSS PROFIT
20,960.00
28,296.00
37,151.00
(24,717.60)
(25,460.00)
(26,223.80)
- Depreciation Expenses
4
(300.00)
(568.00)
(568.00)
(4,057.60)
2,268.00
10,359.20
-/+ Dividends and Interest Income
0.00
0.00
0.00
- Interest Expense
0.00
0.00
0.00
(4,057.60)
2,268.00
10,359.20
2%
2%
2%
(10,057.00)
(4,951.30)
2,417.97
OPERATING PROFIT (EBIT)
PROFIT BEFORE TAXES
Taxes
5
Year 3
20,960.00
- Administrative Expense / SG&A
3
Year 2
Revenue
NET PROFIT
Audio Visual Services:
AV consultations @ $50.00
$40 per hour of work in studio for mixing and $85 per song for mastering.
Event Services:
-
$30 and hour for technician rate.
Orca AV Experience estimated at about $15000 per event which includes all
equipment. This will not be implemented until year 4.
4.4 Pro-Forma Cash Flow Statement
Fig 1.4
Revenue Streams:
Mixing/Mastering
CWA GIG (Valley Crow)
MUSO
ENTERTAINMENT
PEMBERTON Farmers
Market
Management
Freelance AV
Cash-Flow Statement (For the first 6-month)
Month
Month
Month
Month
Pre-Startup
1
2
3
4
150
180
216
259.2
1800
1800
1800
1800
Total Income
Expenses:
One time fee
Monthly Fixed Expenses
Personal Investment
$50,000.00
Total
$49,616.00
Month
5
311.04
1800
Month
6
373.248
1800
250
250
250
250
250
250
180
0
300
180
0
300
180
0
300
180
0
300
180
0
300
180
500
300
2680
2710
2746
2789.2
2841.04
3403.25
-2059.8
-2059.8
-2059.8
-2059.8
-2059.8
-2059.8
620.2
650.2
686.2
729.4
781.24
1343.45
-$384.00
Fig 1.5
Cash-Flow Statement (as of DECEMBER 2016)
Year 1
Year 2
Year 3
INFLOW AND OUTFLOW
1
Funds provided by:
Receipts #1
$ 20,960.00
$ 28,296.00
Crowdfunding
$ 15,000.00
Personal Investment
2
$ 37,151.00
Investment
TOTAL FUNDS IN
Funds used for:
Cost of goods acquired
Payroll
SG&A
Interest expense
Rent
Building and equipemnt
Depreciation
Long-term debt reduction
TOTAL FUNDS OUT
$ 50,000.00
$ 45,942.00
$ 40,990.70
$ 70,960.00
$ 74,238.00
$66 000
$ 93,141.70
$ 6,563.00
$ 24,717.60
$ 24,717.60
$
-
$ 7,219.20
$ 18,540.00
$ 25,460.00
$
-
$ 7,891.23
$ 19,096.00
$ 26,223.60
$
-
$ 2,400.00
$
300.00
$
$ 58,698.20
$
$
$
$
$ 54,187.20
$ 56,178.83
$ 12,261.80
$ 20,050.80
$ 36,962.87
$ 50,000.00
$ 1,000.00
$ 12,261.80
$ 45,942.00
$ 2,000.00
$ 20,050.80
$ 40,990.70
$ 3,000.00
$ 36,962.87
2,400.00
568.00
2,400.00
568.00
3
4
5
NET CHANGE IN CASH POSITION (Total
Funds In - Total Funds Out)
CHANGES BY ACCOUNT
Changes in Liquid Assets
Cash
Investment Portfolios
TOTAL CHANGES
Period
`Net Present Value
NPV Rate
10%
NPV Total
$149,465.29
1
$55,488.75
2
$57,013.67
3
$36,962.87
4.5 Cash Burn Rate
Zpod has a manageable daily cash burn rate of about $92 and approximately $2800
monthly.
Daily cash burn rate
Monthly cash burn rate
$91.81
$2,792.59
5. Risks
Some of the risks that Zpod could face is losing any of its revenue streams especially Valley
Crows. But this is unlikely due to a solid relationship with clients whom VC is a resident
musician for. Zpod could also face a slow growth rate in its AV services as there is heavy
competition in secondary market. Finding Artists to manage and willing to put the time and
effort in could pose a risk to the management portion of the business. Another risk that seems
to be increasing is the risk of forest fires in the area which could potentially disrupt business
operation.
Appendix
Figure 6:
Figure 7:
Figure 8:
Figure 9:
Figure 10:
Figure 11:
Figure 12:
Figure 13:
Figure 14:
Media of
