BUSINESS PLAN

Karah VanceDecember 9, 2009

KaleidoArts Productions

Creative Kids CAN!

TM

TM

TM

TM

KaleidoArts ProductionsCreative Kids CAN!

TM

Location

TM

Location

Burning Need

30-second video (editing in progress)featuring interviews of Cleveland high school

students about the state of the education system and the lack of fine-arts education

“The country has

got to experiment with ways to provide a better education experience

for its children”

The Problem

TM

TM

Unique

TM

Target Market

5.8 miles, 54,000

Demographics (3)

Psychographics MyBestSegments. Claritas.com. Retrieved February 20, 2009, City-Data.com. Retrieved October 29, 2009, 2007 U.S. Census

TM

Direct Competition

0375,000750,000

1,125,0001,500,000

A P B AC J R

Net Revenue Expenses Gross Receipts

TM

Indirect Competition2 education programs:

STEP, Brick City

Drama intensive

School expense

TM

Competitive Advantage

After school & weekend personalized tutoring

Arts integration in 4 core areas

Open-door policy

Adults can learn too

Eclectic management

Global perspective & bilingual

International artist exchange

Future Business Leaders of America

Doesn’t take much to teach! (labor)

TM

Risks & Barriers to Entry

Market saturation, strategic partnerships

Licensing

Breaking into the fundraising “inner-circle”

Highly-qualified staff, high turnover

Forming a Board

Facilities

TM

Marketing Strategies

Grassroots & Guerilla Marketing:

Membership CardsDigital PortfoliosPublic Performances

Internet Video Podcasts

Internet Video

Website Development

Mobile Friendly

TM

Management Team

Karah Vance, Managing Director & Head of Personnel •Oversees management staff & operations•Theatre, political science, legal research background•Corporate management background & EBMS•Education outreach background

Jaime Neligan, Public Relations & Marketing Manager•Spanish and Theatre background•Digital design & film

TM

Growth Projections & Milestones

Year 1 (2011)Social Venture Capitalists & Board of DirectorsFederal Tax ExemptionOhio grant eligibilityDonated space3 students per workshop

Year 26 students per workshopLicensed after-school organizationLaunch adult group workshopsStrategic partnerships

Year 310 students per workshopLocal grant eligibility

http://endicottstudio.typepad.com/endicott_redux/events/

3-Year Growth in Sales

Revenue Assumptions %Drama & Dance 116.7Visual Art & Music 116.7Ticket Sales 103.8DVDs 116.7TOTAL NET SALES 114.3

Projected Profits %Total Net Sales 100.0Cost of Goods Sold 54.4Gross Profit 45.6Total Expenses 95.8Profit Before Taxes -50.2

Start-up Costs

Facilities $7,000

Equipment 17,400

Office Supplies 1,726

Fees & Other Expenses

Expenses

8,005

TOTAL $34,131

Operating Expenses

Cost of Goods

Year-One Assumptions (2011)

Revenue Assumptions $Drama & Dance 10,620Visual Art & Music 11,160Ticket Sales 7,800DVDs 12,600TOTAL NET SALES 42,180

Projected Profits $Total Net Sales 42,180Cost of Goods Sold 35,009Gross Profit 7,171Total Expenses 117,048Profit Before Taxes 109,877

Year-Two Assumptions (2012)

Revenue Assumptions $Drama & Dance 21,240Visual Art & Music 22,320Ticket Sales 14,400DVDs 25,200TOTAL NET SALES 83,160

Projected Profits $Total Net Sales 83,160Cost of Goods Sold 49,064Gross Profit 34,096Total Expenses 87,656Profit Before Taxes 53,560

Year-Three Assumptions (2013)

Revenue Assumptions $Drama & Dance 35,400Visual Art & Music 37,200Ticket Sales 24,000DVDs 42,000TOTAL NET SALES 138,600

Projected Profits $Total Net Sales 138,600Cost of Goods Sold 59,598Gross Profit 79,002Total Expenses 48,148Profit Before Taxes 30,854

TM

Sources & Uses of Funds

Drama&Dance 10.620Art & Music 11,160

TOTAL $21,780

SCHOLARSHIP FUND: LABOR & MATERIALS

AMOUNT BEING SOUGHT:(Equity Investment) $229,464

Start-Up Costs 34,1311st Year Initial Losses

Labor, Insurance, Marketing 109,8772nd Year Initial Losses 53,5603rd Year Initial Losses 31,896

TOTAL $195,333

MAJOR USES OF FUNDS

TM

Nonprofit ROIBoard of Directors position,

Electing future Board members and employees,

Voting power on major company events,

Cross-promotion with investor’s business,

Liability protection

Tax write-offs

http://www.silvermusic.org/demonstrationclasses.htm

TM

Exit Strategy & Next Steps

EXPAND! MERGE!

STRATEGIC PARTNERSHIPS!

MORE WORKSHOPS!

http://www.acewebsitehosting.com/otv/

KaleidoArts Productions

Creative Kids CAN!

TM

TM

TM

Thank you!Questions?