Table of Contents
Executive Summary 1
1.1 Objectives 1
1.2 Mission 2
1.3 Keys To Success 2
Company Summary 2
2.1 Company Ownership 2
2.2 Company History 2
Services 4
3.1 New Consciousness Radio Network 4
Market Analysis Summary 4
4.1 Market Segmentation 5
4.2 Target Market Segment Strategy 5
4.2.1 Spiritual Groups 5
4.2.2 Radio Listenership 5
4.2.3 Alternative Medicine 6
4.2.4 Authors and Speakers 7
4.2.5 Alternative Media 7
4.2.6 World Population for Positive Change 7
4.3 Service Business Analysis 7
4.3.1 Competition and Buying Patterns 7
Strategy and Implementation Summary 8
5.1 Competitive Edge 8
5.2 Marketing Strategy 8
5.3 Sales Strategy 9
5.3.1 Revenue Streams 9
5.3.1.1 Commercial Advertising 9
5.3.1.2 Program Sponsorships 10
5.3.1.3 Talk and Music Show Hosting 10
5.3.1.4 Web Banners 10
5.3.1.5 CD/Music Sales 10
5.3.1.6 News/Wx Sponsorships 10
5.3.1.7 Syndicate Membership Ad Sales 11
5.3.1 Sales Forecast 10
Management Summary 12
6.1 Personnel Plan 12
Financial Plan 13
7.1 Important Assumptions 13
7.2 Break Even Analysis 13
7.3 Projected Profit and Loss 13
7.4 Projected Cash Flow 14
Appendix:
Religion Spreadsheet 16
Sales Forecast Monthly Spreadsheet 17
Personnel Monthly Spreadsheet 18
Profit and Loss Monthly 18
Cash Flow 19
1. 0 Executive Summary
New Consciousness Radio Network began in the late 80’s in the mind of Disc
Jockey Tom Averna. While sitting in Rush hour traffic in Denver, he was trying
to find a station that would both stimulate him after a hard day’s work
and keep him calm amidst the chaos around him. There was nothing on the radio
dial, but a tape of his daughter’s Beauty and the Beast happened to be in
the player so he turned it on. He began to feel good about everything around him
and he wondered why an adult radio station couldn’t play music from these
so called Children’s movies. From there the idea expanded to include all
genres with upbeat, life-affirming, consciousness raising lyrics and sound. In
2001 Radiopositive began broadcasting on the Internet featuring just such a format.
This format centered around a newly discovered group of emerging Independent artists
specifically performing “positive” music.
The station continued to suffer from underfunding and went off the air in 2003.
In 2004 the station resumed broadcasting under the name Positive Music Radio after
Averna was asked to co-found a group called Positive Music Association as a way
to promote this emerging industry. Unfortunately the major financial backer of
this new association died before providing any funding, but Scott Johnson and
Tom Averna decided to continue to develop the Association. Again due to underfunding
and a personal family crisis Averna had to end broadcasting in 2005, but Scott
Johnson continued to operate the Positive Music Association and it continues to
exist at www.positivemusicassociation.com. In 2007 a third attempt to resurrect
the vision emerged as New Consciousness Radio was formed. This station had a totally
unique format using state of the art software to provide a “live”
sound and allows for the inclusion of advertising and the addition of other live
shows throughout the day.
1.1 Objectives
1. To increase unique monthly visitor traffic to our music and talk streams to
20,000 unique visitors, one hundred thousand hits and 25, 000 ATH (Aggregate Tuning
Hours) in the first year and growing by half again each year thereafter in 2009
and 2010
2. To increase our name recognition to authors, speakers and teachers in the New
Age and New Thought movements.
3. To appear on the first page of all major search engines using the phrase “Positive
Music,” “Talk Shows,” “New Age Music,” “New
Consciousness Music,” or “NC Music.” And to appear in the top
ten pages for the search, “Internet Radio Stations.”
4. To increase revenue to $100,000 in 2008, to $200,000 in 2009 and
$400,000 in 2010
5. To develop or be a part of a state of the art multi media website.
6. To acquire a marketing person who finds joy in promoting and developing this
vision.
7. To develop Conscious Music Tours to promote both NC Radio and Positive Music.
1.2 Mission
NC Radio Network provides a unique ever expanding web-based community incorporating
cutting edge web and broadcast technology providing a portal for individuals and
businesses from all around the world to teach, promote, and learn the importance
of spirituality, higher consciousness, healthy living, positive thinking, compassion
and environmental awareness in a fun, satisfying and professional environment
through the use of entertainment and information. In the process we support and
promote the quality and talent of new positive artists and communicators performing
and presenting this message.
1.3 Keys to Success
NC Radio Network’s keys to success will include:
1. Constantly finding new and innovative ways to present a positive message on
our website
in music and talk.
2. Cross promotion and marketing with New Thought and New Age and Positive media
using the uniqueness of having a radio station to encourage major authors, speakers,
publishers, filmmakers, media personalities and others to advertise and promote
both NC Radio and other media.
3. All advertisers and readers of the above media will be encouraged to link to
and promote NC Radio in exchange for reduced fees and cross promotion providing
an ever increasing audience potential for NC Radio.
4. Aggressive print, internet, audio and video advertising and promotion to draw
a constantly
increasing number of people to our streams that will keep them coming back again
and again.
5. Significant investments in research and development, software and programming
to keep our website on
the cutting edge of what's happening on the Internet.
6. Constant attention to detail and staying one step ahead of our competition.
2.0 Company Summary
NC Radio is a unique medium to teach, inspire and promote the emerging consciousness
on this planet and is on target to become one of the most important communities
of like-minded free thinkers on the planet.
2.1 Company Ownership
New Consciousness Radio Network was founded by Tom Averna who is currently Manager
of the station.
2.2 Company History
In April of 2001, Tom Averna began broadcasting Radiopositive on Live 365 creating
the world’s first truly Positive Music station. Tom has 15 years in radio
broadcasting, 10 years in teaching and 3 years experience in running a newspaper
and Internet Radio station focusing on Holistic and Positive subjects. Radiopositive
was the only station of its kind on the Internet or anywhere featuring over 200
independent artists performing music with a holistic, positive theme. The newly
emerged NC Radio Network continues to encourage, inspire, and teach everyone the
power that resides within to create a happier, healthier, more compassionate,
more joyful and more peaceful self and therefore world through the power of positive
thinking, speaking and living. What we take into our consciousness through our
senses, especially sight and sound, program our attitudes and responses to our
surroundings and situations. The computer term garbage in and garbage out became
very apropos to help us understand what is going on in the world today. It is
the goal of NC Radio Network to allow all who want to an avenue to change that
programming by inputting positive, consciousness raising sensory input.
Our history as well as our future involves developing an internet based media
network and website dedicated to promoting positive thinking and communication
through the use of audio and video information dedicated to teaching and enabling
its audience to focus on the positive and thereby bring positive manifestations
into their lives.
The network will ultimately consist of shows produced all over the country offering
a national flavor. These shows will present musicians and speakers offering holistic
and positive entertainment and teachings. The network will also gather and present
positive events, news, interviews and information from all over the nation and
the world. The length of the shows will vary.
The initial focus is the Radio Network with Positive and Holistic music and talk.
The goal is to include Positive Music and artists from any and all religious tradition
or musical genres that presents a message that is positive and inclusive. The
music played on the station should be equally appealing to a Moslem, Christian,
Jew or Buddhist, at least to those open-minded in each faith. NC Radio recognizes
that it cannot be all things to all people, but it can retain the value of only
playing music that is positive and inclusive. This would include music that would
be professionally produced, fresh, upbeat and contemporary as well as the more
traditional meditative and new age format.
The audience is targeted based on a desire to hear music that is contemporary
and up-tempo, but containing lyrics or a feeling of a positive and uplifting nature.
One of our listeners described it as "music that can make you feel better
after listening to it than you did before."
3.0 Services
To maintain dominance in our field, NC Radio Network intends to implement the
following additions in 2008, 2009 and 2010 to increase revenue to the site as
well as the enjoyment and interactivity of our visitors:
An online radio network, not only offering national, positive call-in talk shows
featuring interviews with today's leading Holistic teachers, but the most comprehensive
contemporary positive music from hundreds of independent and main stream artists
that will help change lives through focusing on the positive lyrics.
Easy to use music player embedded in our home page as well as a now playing screen
displaying the current and previously played song as well as upcoming artist.
A playlist showing all the songs in our music library with links to artist’s
websites and to purchase CD in or individual songs from our online store.
An artist and song info link ultimately including lyrics and contact info for
booking artists
On the Talk show side we will also have host link info and host pages that allow
each host to provide additional material and resources for their shows including
chat rooms to meet with listeners and students. Guests will also be given links.
Complete schedule information for both music and talk shows.
The ability to purchase and download individual songs and/or compile a custom
CD.
A Conscious Concerts Tours promotional arm to set up and facilitate concerts across
the country.
By 2009, we will implement a news organization to gather and report positive and
interesting news related to health, human experiences, spirituality, events, and
other news as fits our format. This news will be reported on NC Radio, our website
and offered in syndication to newspapers and magazines across the country.
By 2010 we will add an entertainment focus producing on-air dramatic performances
of original and positive productions of plays, books, and other writing. This
will have the feel of the old radio shows.
At some point we will also feature a studio where artists can come in for interviews
and perform their music. We will also be offering live concerts from time to time
either in studio or on location.
This is only the beginning.
4.0 Market Analysis Summary
The market for NC Radio Network would fall into six broad categories with definite
overlaps between them. They are:
• Religious Market (Consisting of New Thought churches like Unity, Unitarian
and Religious Science and
Metaphysical or otherwise non-traditional churches and groups as well as Eastern
philosophies like Buddhism. This would also include mainstream Christian and Jewish
members who are interested in maintaining positive health and lives using yoga,
meditation, prayer, etc.)
? Internet radio listeners looking for a mix of genres with a positive message.
• Alternative Medicine (Consisting of practitioners, and patients of disciplines
like Yoga, Acupuncture,
Chiropractic Care, Massage Therapy, etc.)
• Self-Help Industry (Consisting of authors, speakers, TV and Radio personalities
like Dr. Wayne Dyer, Dr. Deepak Chopra, Dr. Phil, Oprah, Chicken Soup For The
Soul series, etc.)
• Holistic Media (Consisting of subscribers to Holistic Health and New Age
Magazines, Holisitic TV Networks, Coast to Coast AM Radio Network, etc.)
• Holistic and Positive People (Consisting of anyone who has ever said or
thought to themselves, "I wish there were more positive things to see and
hear in the Media." or "Why can't we all just get along?")
4.1 Market Segmentation
Using the five categories listed above the following is a segmentation chart.
The overlap of these categories makes it a little tough to fit into a chart, but
this is what it might look like:
4.2 Target Market Segment Strategy
4.2.1 Spiritual Groups
The first natural fit market for NC Radio is the “Holistic”, "New
Thought" and "New Age" communities. The largest formal groups in
this genre would include Unity, Unitarian and Religious Science organizations.
These three groups alone comprise more than 2 million people in the USA according
to 1998 statistics (www.adherents.com). And that number is most likely higher
now. A most interesting statistic also from Adherents.com is the fact that from
1990 to 2001, New Age membership increased 240%.
There is clearly a trend moving towards the ideas of unity, community, and holistic
health in this country. We'll look at that trend in more detail later, but suffice
to say these numbers are only going to increase. If we add to the two million,
other religious groups who are inherently interested in Holistic concepts like
Eastern Religious groups, Neo-Pagans, Spiritists, Humanists, Scientologists, some
Christian denominations like Seventh Day Adventists, etc, (See Appendix for list
details) the number in the US alone grows to over 4 Million.
Additionally, there is an enormous category that has also increased 170% since
1990 who would also be a good fit for NC Radio Network. This is the category labeled
Non-Religious or Secular. This category includes the largest portion as those
people who consider themselves spiritual but not religious. This number is set
at 27 million. So even if we are conservative and can only draw from 50% of this
market that gives us over 15 million people in the USA.
Of course NC Radio is a world-wide operation. Again using Adherents’ figures
the world number for all of these organization exceed half a billion. And Geo
Hive with Global Statistics at http://www.xist.org/global/religion_top.php shows
over 20 Million adherents to new age and metaphysical religious groups alone worldwide.
4.2.2 Radio Listenership
According to a 2006 study done by Arbitron and Edison Media Research, weekly Internet
radio audience increased by fifty percent from 2005 growing to an estimated 52
million listeners. This study also made it clear that the Internet was a good
place to advertise according to Bill Rose, senior vice president, marketing, Arbitron,
who said "... this new research reveals that these advertising vehicles are
becoming increasingly viable." In the intro to the survey several key points
regarding the Internet market were made, which are very significant to the viability
of the Internet to advertisers. First in the overview Rose had this to say: “The
audience for radio and video broadcasting over the Internet has grown substantially
in a very
brief period of time. The phenomenon is akin to the rise of FM radio in the 1970s
and cable TV
in the 1980s. In this study, we will focus on the characteristics and advertising
value of this important audience. Internet broadcast consumers (known as “Streamies”)
are the true “ultra-core” of the Internet: They spend more, are more
eager to try new products and services, and are a compelling advertising target.Monthly
users of Internet broadcasts represent a quarter of those online, yet they account
for 43% ofall time spent online and 42% of estimated online expenditures.”
The highlights of the report include:
“The estimated number of Americans who have used Internet broadcasts in
the past month
was 51 million people as of January 2004. Twenty-one percent of Americans say
they have
watched Internet audio or video in the past month. Overall, 44% of Americans (108
million) age
12 and older say they have tried Internet broadcasting at least once.
The estimated weekly Internet broadcast audience is 30 million, or 13% of all
Americans.
The Internet broadcast audience continues to grow, becoming more of a regular
habit among
online Americans.
Consumers are increasingly using spam-, pop-up- and banner-blocking programs on
their
home and work computers. Forty-two percent of all Internet users have ad-blocking
software on
their home and work computers. Sixty-three percent of the weekly Internet radio
and video
audience use such technology.
Internet radio is the “soundtrack” for online shopping. Forty-two
percent of the Internet
audio audience say they have listened to Internet radio while shopping or researching
a
product/service online.”
Again this is from the 2006 Arbitron and Edison Media Research survey on the Internet
and Multimedia.
NC Radio’s unique blend of Indie as well as mainstream music was also praised
in another survey. Radio Row.com is a major source for Internet listenership statistics
and they followed up Arbitron’s study with more detailed figures for specific
formats. Especially pertinent to NC Radio is that they found that stations strictly
playing Indie music were down but those that offered listeners a variety of genres
increased. Radio Row’s survey made this comment regarding Indie play, “Maybe
these new artists need a different presentation from independent radio stations?”
NC Radio offers just such a format. Radio Row also pointed out that New Age formats
also increased listenership by 32%. All of this is great news and only the beginning
of this trend. Advertising on the Internet will become increasingly more powerful
and more sought after by all businesses.
Armed with this kind of support and statistics, selling NC Radio will be much
easier and therefore more successful.
4.2.3 Alternative Medicine
The next obvious market for NC Radio is the Alternative Medicine/Natural Healing
phenomenon, which is rapidly expanding in the United States and around the world.
Three recent cover pages on the nations leading newsmagazines confirm this.
Newsweek featured a story entitled Faith & Healing: Can religion improve health?
While the debate rages in journals and med schools, more Americans ask for doctors’
prayers in their November 14, 2003 issue. The article clearly showed that while
the medical community is divided, the majority (74%) of the American people want
to be treated holistically.
Two Time Magazine covers in 2003 had very similar findings. In January of 2003
Time's cover story headlined: Your Mind, Your Body: Doctors and scientists are
learning how emotions are connected to our physical health. And in August Time
again featured this subject as a cover story with the following headline: The
Science of Meditation: New Age mumbo jumbo? Not for millions of Americans who
meditate for health and well being. Here's how meditation works.
The Journal of the American Medical Association also supports the facts showing
increased numbers flocking to the Alternative Medicine modalities.
So all indications are that we have only scratched the surface on Alternative
Medicine popularity and NC Radio Network can tap into this lucrative market with
our ongoing development of interesting and informative talk programming.
4.2.4 Book Authors and Publishers
We would also appeal to the market for the Self-Help, Alternative Medical and
Spirituality genre of book publishing. Considering the work of Dr. Phil, Carolyn
Myss, Chicken Soup for the Soul series, Deepak Chopra, Wayne Dyer, Marianne Williamson,
Louise Hay and the like, sales numbers are over 300 million books in the last
ten years sold in more than 38 countries around the world, this market is also
easily targeted as listeners to NC Radio.
4.2.5 Alternative Media
Similar to the publishing results are the alternative media that are growing in
popularity. These include New Age and Holistic magazines that will be a part of
NC Reviews syndication membership; TV shows as well as cable networks offering
advice and information that is positive and holistic; and radio networks like
Coast to Coast AM. These boast listenership and readership in the tens of millions
and they continue to grow. Here again is a market that is perfect for the products
and services of NC Radio Network.
4.2.6 World Population asking for more Positive Input
But the broader market is made up of anyone, regardless of belief system or lack
thereof who has ever made the comment, "I wish there were more positive things
to see or hear in the media." Given the alternative medicine statistics at
74%, it is entirely conceivable that this same number would fall into the above
categories. But even reducing the number to a conservative 50% that would give
us a target market of almost 130 million people in the United States and possibly
three billion people worldwide.
4.3 Service Business Analysis
NC Radio Network's service industry is anyone who wants to listen to great music
and wants to increase the amount of joy and positive energy in their life. Currently
there are only two other radio stations on the Internet offering a consistent
stream of this music and no one has established this music in conjunction with
a national magazine or talk show programming. NC Radio is the only source for
non-Indy positive music as well because we believe that it is also a part of our
mission to continue to encourage all artists to perform music with a positive
message and that there is a substantial listener base who will purchase those
songs and CD’s. NC Radio is the only Internet station of its kind and as
such is poised to be the Industry leader in the growing and emerging trend towards
consciousness in our world. This trend will only continue to grow.
4.3.1 Competition and Buying Patterns
Looking at our only two competitors, here is what we can determine.
Media Positive Radio: This station was actually begun by NC Radio’s manager
Tom Averna when he was in the employ of Michael Brickell then owner of Holistic
Junction. This website has since sold and Michael continues to run Media Positive
Radio, but there has been no change in the very basic music portion of the website
for over two years. Media Positive’s format seems to be very inconsistent
and poorly structured. He does offer a mix of Indie as well as popular music,
but the mix is not comfortable to listen to. It just lacks the spark and life
that NC Radio has been able to develop after five years of practice. Additionally,
Michael seems to be developing other ventures with a higher priority to Media
Positive Radio, therefore we should be able to take and keep the lead when we
begin our focus on a state of the art music stream and ultimately web presence.
Quantum Quest Radio: This is a new venture and specifically focuses on New Thought
musicians. They are well connected in this arena, but there is certainly room
for more. They currently only broadcast with about 60 artists compared with over
200 on NC Radio’s Indie list. They broadcast on Live 365, so they are limited
as to their production and scheduling abilities and they have no talk formats
associated with their station. They also currently offer no “live”
music programming which NC Radio will have.
The bottom line is that we can quickly and easily assume a position of dominance
in this market and once there easily retain it with constant attention to quality
development and production.
5.0 Strategy and Implementation Summary
So in recapping and looking at each Market Segment, here's how our marketing strategy
would target them.
•Religious: Once NC Radio Network is in place, we will conduct a telephone
campaign to reach major denominational leaders to offer programming in exchange
for promotion.
•Alternative Medicine: Telemarketing will be the big push here as we target
at first major disciplines like Chiropractic Care or Acupuncture while simultaneously
advertising on Search Engines and Trade Journals to reach them. Alternative Health
Expos would also be used as well as exchanging web-links with those larger practitioners
with well established websites.
•Self-Help: This group will be targeted as well with telemarketing and e-mail
campaigns offering exposure through our radio network of talk and music shows
as both advertisers and hosts.
•Alternative Media: This plan will include paid advertising as well as a
plentiful supply of mail and e-mail press releases to these groups and personal
contact follow-up to let them know we are here. We will also utilize the resources
of our sister company NC Review’s syndicate membership to promote NC Radio
•Other: This group will be targeted by all of the campaigns above as well
as the money spent on search engine optimization and word of mouth campaigns by
our already established membership. In the future as finances allow, we will also,
on a target market basis, invest in Billboard and traditional media advertising
to reach those who may not know they are looking for us.
5.1 Competitive Edge
The competitive edge of NC Radio Network is its already demonstrated out of the
box thinking. As mentioned before, we are using the Internet to create not only
a global community, but a national and local community atmosphere as well. As
we continue to add those features our members want and those they will want after
they see it offered, we will raise the bar to our competition and be looked to
as the leader in this industry. There is currently NO ONE else on the Internet
offering the extensive Media Network we are proposing and no one that is packaging
all of the features we will have online by the end of 2007.
5.2 Marketing Strategy
NC Radio Network will use a variety of strategies to reach our five target markets.
Some of these strategies will work for several of the markets and some will be
unique. These include extensive cross promotion with other positive media resources,
telemarketing, mail and e-mail campaigns, advertising, and speaker and booth opportunities
at various large Expos.
The key to both our marketing and sales strategy will be the use of the resources
of NC Review and their unique feature of syndicate members. This will give NC
Radio and ever expanding reach into thousands of communities and households at
a fraction of the cost of advertising in each of those markets. This will provide
us with promotion and marketing resources that will insure growth and success.
Our sales team will also use telemarketing efforts to reach our target markets.
These employees will, in a legal, friendly and unpressured way introduce our various
offers to each of these markets. Specifically to the Spiritual/Religious market
will be calls to large group leaders who fall into our Religious categories to
let them know of our existence and offer them the possibility of doing an audio
and ultimately a video program.
Also targeting most of our markets will be our e-mailing campaigns. As with telemarketing
above, this will be done in a legal, friendly and unpressured way.
A more expensive method of marketing and promotion will be print, video, audio
and web advertising. This will be done on a very selective basis, but we will
certainly target larger coverage media exclusive to our markets. Media like Oasis
and Wisdom TV Networks.
Expos are another way to reach the Holistic audience. Most major cities sponsor
Holistic or Metaphysical fairs. We will start out slowly in this arena to see
if it proves profitable, but it could conceivably be a very good way to introduce
our site to thousands of people at a time.
5.3 Sales Strategy
There are three key areas we’ll focus on in sales strategies versus marketing
strategies. Cross promotion with positive media, telemarketing, and word of mouth.
Through the use of one or more marketing partners, we will contact and followup
every major positive newspaper, magazine, website and other media across the nation
and world to let them know about us for story reporting as well as cross advertising.
Telemarketing at NC Radio Network will focus on the quality of personal contact.
We will introduce ourselves to various Holistic and Metaphysical businesses and
let them know we're here and that we have a lot to offer. Should they be interested,
we will set up a second appointment that will include more information to persuade
them including a web tour and a detailed list of benefits to their business. This
personal touch is a powerful and effective sales tool.
Finally, the most powerful tool of sales and marketing is word of mouth. NC Radio
features over 200 Indie artists and that number is constantly growing. Many of
these artists have never gotten airplay until now and they are all over the country
and the world promoting, not only their music but NC Radio as well. These artists
will also provide links from their website to ours. Additionally the uniqueness
mentioned above will generate great excitement that will also lend itself to equally
great word of mouth campaigns.
Combining these sales strategies of cross promotion, telemarketing and word of
mouth, as well as traditional marketing advertising and promotion will allow us
to quickly become the sales leader in our industry and to hold that position.
5.3.1 Revenue Sources
The Sales Forecast below is based on seven different revenue streams. Each one
targets our hosts and listeners in different ways.
5.3.1.1 Commercial Advertising
This is a traditional form of revenue for traditional radio stations and the appeal
is now growing for Internet stations according to a 2006 Arbitron study quoted
above. The Internet is especially appealing to those wanting to reach a global
audience such as authors, speakers and teachers and those who do business with
them, which happens to be a major part of NC Radio and NC Reviews business base.
We have based our costs on a traditional model and in brief, here’s how
it works and how it will increase over time. Advertisers are used to buying advertising
based on a cost per thousand impressions. In radio, those impressions are based
on the highest number of consistent listeners in a quarter hour. Radio has to
pay a fairly high price to get those numbers from Arbitron, but on the Internet,
we can easily tell who is listening and when. So a pretty standard cost in radio
would be about $10 per thousand. Using that as a base, I have calculated our initial
charge at $1 per ad. This assumes that at the beginning, we should have 100 listeners
as our high quarter hour figure. All the sales figures are using this base amount,
but clearly as our listenership grows, so too can our advertising rates. I don’t
think it will take us very long to get to the thousand listener mark and then
grow beyond that. Additionally Internet listeners tend to listen longer, which
makes them more valuable than traditional radio listeners. Additionally to begin
with we may primarily be able to sell only national and global reaching ads, but
we can also show from our statistics how many listeners we get from each area.
So when we can show for instance a consistent listener base from, say Portland,
OR then we can start selling local ads there or we may choose to start a separate
stream for the Portland area, maybe a four hour show to begin with and see how
it grows.
5.3.1.2 Program Sponsorships
This would be similar to the idea of public radio where we have :10 to :15 second
spots simply giving the name of a business and brief information saying that they
are sponsors of this hour or portion of Positive Music on NC Radio. These can
be sold initially for $100 per month giving them about 150 mentions a month. As
above these prices can increase as our numbers grow. This category will also include
sponsorship of short one to three minute programs like a calendar of events or
positive thoughts or positive stories or book reviews, etc. Those costs for sponsorship
would be higher and would probably include a :30 commercial.
5.3.1.3 Talk and Music Show Hosting
This is a mainstay for Internet streaming and there are a lot of places out there
for talk show hosts, but no one that is offering the complete package that New
Consciousness Radio Network and New Consciousness Review offer combined. Out Talk
show hosts will be part of a state of the art website that will offer podcasting
as well as interactive use of webpages with materials that will complement their
talk shows. Also talk show hosts may opt to pay a little more to be a part of
our live talk show streams or produce less expensive shows one to four times a
month as on demand feeds. Either way, NC Radio will provide a great deal of incentives
that most other websites simply can’t offer allowing us to pull the very
best to our site. Additionally, because we are already paying music royalties,
talk show hosts will be able to play music within their shows without having to
pay royalties as long as they present their shows exclusively on our network and
they can provide us with a monthly transcript of the music used. In that regard,
we will also be able to allow hosts to put together their own music shows to broadcast
on our network exclusively. Our initial charges of $25 per show will also increase
as our listener numbers grow.
5.3.1.4 Web Banners
This is another traditional source for web advertising and can be set up as a
pay per click thru rate or a cost per thousand impressions as explained in the
commercial advertising section above. Again, as our listener numbers increase,
so can our banner ad costs.
5.3.1.5 CD/Music Sales
Given that NC Review already has a store/shopping cart setup, this should be a
relatively easy and low cost source of revenue for NC Radio Network. At least
initially, it will be setup with no costs for storage or shipping as the artists
will agree to take care of that. We will take care of billing and processing each
sale and take 40% of sale as our rate. At some point, we will invest in a slightly
more complicated system allowing us to sell .99 downloads of individual songs.
This will involve a web setup cost, but after that it should take care of itself
and the percentage of sale will be slightly higher, 50% as we will have to store
the music on our site. There will be an initial setup charge depending on the
number of CD, song and artist pages that will have to be generated. This can range
from $75 to $400 depending on the number of songs and CD’s. A similar system
can also be setup to sell CD’s of talk shows.
5.3.1.6 News/Wx Sponsorships
In late 2008 we will begin the process of adding positive news shows to NC Radio.
These 5 minute shows will run live from 5am to 10 am and again from 2 pm to 7
pm with repeated shows filling out the day. There will be :90 of commercial time
available that can be sold at a higher rate including an open and close listing
the sponsor(s) for each newscast. The goal is to assemble a hard news team that
will be scouring the world for positive stories in both hard news and soft news.
Ultimately this team will work with news tips from our listeners and create a
unique set of stories carried nowhere else. At that point we may also syndicate
this news to both print and audio media and eventually video media as well providing
yet another revenue stream.
5.3.1.7 Syndicate Member Ad Sales
Given the unique structure of NC Review in putting together a syndicate of holistic
magazines and publishers, NC Radio can utilize this powerful coalition of new
age magazines to not only promote our listenership dramatically, but to provide
another revenue stream for both the radio station and the magazine. We will offer
these magazines an opportunity to sell their own businesses radio advertising
and keep 60% of the sale or up to 75% of the sale if they agree to run a quarter
page to a full page ad in each issue promoting NC Radio. This is a win-win for
both businesses. The more they promote us the more money they make and the more
listeners we have and the more ads they can sell. We agree to produce and schedule
the commercials unless there are unusual production requirements. If so they can
pay a production fee based on the amount of time or provide a broadcast ready
copy of the ad. As mentioned above, they will primarily sell to their businesses
wanting to reach a national audience, but as listener numbers grow for each area,
we may provide regional broadcasts as well that can be sold for local advertising.
5.3.2 Sales Forecast
Sales Forecast data is presented in the chart and table below. The monthly forecast
for 2007 can be found in the Appendix.
Table: Sales Forecast for fiscal years beginning in September
Sales Forecast
2008
2009
2010
Commercial Advertising
$88,920.00
$144,000.00
$172,800.00
Program Sponsorships*
$21,800.00
$40,000.00
$50,000.00
Talk Show Hosting
$30,800.00
$50,000.00
$62,500.00
Web Banners
$18,000.00
$30,000.00
$37,500.00
CD/Music/Other Sales**
$13,230.00
$27,000.00
$40,000.00
News Sponsorships
$0.00
$50,000.00
$62,500.00
Syndicate Member Sales
$14,700.00
$21,000.00
$30,000.00
Total Income
$187,450.00
$362,000.00
$455,300.00
Units of Sales
Commercial Advertising ($120 per month)
741
1200
1200
Program Sponsorships ($100 per month for 100 liners)
218
400
480
Talk Show Hosting ($100 per month for 1 hour show)
308
500
600
Web Banners ($100 per month per banner)
180
300
360
CD/Music/Other Sales
News Sponsorships ($100 per show)
500
600
Syndicate Member Sales
490
700
1000
Total Units per year***
1937
3600
4240
Increase of 50% rounded to next highest hundred +
Increase of 20% rounded to next highest hundred ++
* Program sponsorships are one liners saying so and so is proud to support positive
and then a brief spoken ad.
**By 2007 I hope to have in place the ability to purchase per song downloads,
which should dramatically increase this income
*** Divide this number by 12 and then divide by number of sales people to determine
how many units of sales will be required of each sales person.
+ The reason I justify such a high increase is that the previous year was a start
up year therefore we were not at our full earning potential till at least half
way through it.
++ These increases also reflect higher advertising rates based on greater popularity
and listenership numbers.
6.0 Management Summary
NC Radio Network was founded by Tom Averna as Radiopositive.
6.1 Personnel Plan
The following table outlines our planned salary projections for 2008. The figures
for 2009 and 2010 may be increased as our need for additional sales and marketing
personnel increases. The 2007 Monthly Personnel Chart can be found in the Appendix.
3 Year Personnel
2008
2009
2010
Tom Averna (Manager)
$29,800.00
$36,000.00
$42,000.00
Production Director
$13,500.00
$24,000.00
$30,000.00
Music Director
$1,500.00
$24,000.00
$30,000.00
News Director
$0.00
$24,000.00
$30,000.00
Admin Assistant
$0.00
$24,000.00
$28,800.00
Computer-Sound Tech P/T
$4,500.00
$12,000.00
$12,000.00
Accountant-Bookkeeper P/T
$5,400.00
$12,000.00
$12,000.00
Reporters
$14,400.00
Reporters
$14,400.00
Total Annual Payroll
$54,700.00
$156,000.00
$213,600.00
7.0 Financial Plan
Our financial plan is based on conservative estimates and assumptions. We will
need to plan on an initial investment to make the financials work.
7.1 Important Assumptions
NC Radio Network assumes in this Business Plan that we will have enough money
to purchase software, equipment, first month’s salary, sales personnel,
and technical support to implement the new features of our website. All other
projections of sales and increases should easily follow the implementation of
these features.
7.2 Break-even Analysis
This is inferred from figures in P&L and Cash Flow sheets below
7.3 Projected Profit and Loss
As the Profit and Loss table shows, the company expects to continue a steady growth
in profitability over the next three years of operations. See the monthly P&L
and Personnel statements in the Appendix. Notes to this sheet are below.
Pro Forma Profit and Loss
2008
2009
2010
Total Income
$187,450.00
$362,000.00
$455,300.00
Expenses:
$0.00
Payroll
$54,700.00
$156,000.00
$213,600.00
Depreciation
$900.00
$1,000.00
$1,000.00
Rent/Lease Studio
$6,000.00
$6,000.00
$6,000.00
Utilities
$1,200.00
$1,500.00
$1,500.00
Payroll Insurance (7%) WorkComp, Unemp, Liab, Prop
$3,829.00
$10,920.00
$14,952.00
Payroll Taxes (10%)
$5,470.00
$15,600.00
$21,360.00
Commissions (10%)
$28,117.50
$54,300.00
$68,295.00
Office Supplies
$3,600.00
$4,000.00
$4,000.00
Phone
$1,800.00
$2,000.00
$2,200.00
Business Cable
$1,800.00
$2,000.00
$2,200.00
Royalties* (6% of Revenue)
$11,235.20
$21,720.00
$27,318.00
Subscriptions**
$900.00
$1,200.00
$1,200.00
Promo Trips***
$900.00
$1,200.00
$1,200.00
Software Support
$675.00
$1,200.00
$1,200.00
Music and Software Budget +
$450.00
$500.00
$500.00
$0.00
$121,576.70
Total Expenses
$121,576.70
$279,140.00
$366,525.00
Gross Profit
$65,873.30
$82,860.00
$88,775.00
Other Income
$0.00
Net Profit
$69,373.30
$82,860.00
$88,775.00
Notes: * Royalties includes ASCAP, BMI and SESAC and Sound Exchange payments.
As we grow, the amount of the payment and reporting obligations also grow. It
is based on a percentage of music income versus total site income. For the first
quarter, we can definitely use their minimum figure, which would cost $100 per
month, but after that it will increase; however it should not exceed the top figures
I have used in 2008 and 2009 and only reach that if we are making the income figures
I have projected.
** Subscriptions include magazine and trade journals related to our industry such
as New Age Reporter, Billboard. this is also somewhat of a slush fund for other
expenses as well.
***Promo Trips include attending seminars and trade shows to specifically promote
NC Radio. One that immediately comes to mind is the Agape sponsored New Thought
Music Serminar in LA usually in September, We can plan on attendance next year
with this budget.
+ This budget is for unexpected as well as expected purchases of music and software.
Until we have enough statistics to begin reporting a chart, we may choose to purchase
CD’s or song downloads of Pop music until we can get the labels to send
us freebies.
7.4 Projected Cash Flow
Cash flow data is presented in the chart and table below. Notes to the chart are
below. 2007 details are in the Appendix.
Table: Cash Flow
Pro Forma Cash Flow
2008
2009
2010
Cash Sales
$187,450.00
$362,000.00
$455,300.00
Cash from Receivables
$0.00
Total Operations Cash
$187,450.00
$362,000.00
$455,300.00
Additional Cash Received
$4,000.00
New Current Borrowing
$8,300.00
New Other Liabilities (Interest Free)
$0.00
New Long Term Liabilities (Int. Loans)
$0.00
Total Additonal Cash Received
$12,300.00
$0.00
$0.00
Total Cash Received
$199,750.00
$362,000.00
$455,300.00
Expenditures:
From Operations
$121,576.70
$279,140.00
$366,525.00
Cash Spending
$0.00
Payment of Accounts Payable
$0.00
Total Expenditures from Operations
$121,576.70
$279,140.00
$366,525.00
Capital Expenditures:
Software (DRS 2006 Broadcast Studio, Music 1 Scheduling, Traffic Software, Adobe
Audition, MS Office)
$2,000.00
Broadcast Computer w/extra soundcrd
$800.00
Production Computer
$1,700.00
Production Library
$600.00
Broadcast Microphones
$200.00
CD Read-Write Player
$0.00
Web Development
$3,000.00
$3,000.00
$3,000.00
Total Capital Expenditures
$8,300.00
$3,000.00
$3,000.00
Other Expenditures:
Loan Repayment
$12,300.00
Net Cash Flow
$57,573.30
$79,860.00
$85,775.00
Notes to Capital Expenditures:
(1) Software: This is the list of major items. Since I will be spending most of
my time at the office, I will load my copies of other software we will both be
using to fill in this gap. Software like music ripping and file organizing software
that I currently own. I can most likely also install my copies of MS Office and
Adobe Audition, but they may have newer versions that will be at least worth the
upgrade cost.
(2) Broadcast computer with extra Soundcard: This can be an inexpensive computer,
but the extra soundcard will be necessary for the live shows so I can cue up songs
and commercials if needed.
(3) Production Computer. This also reflects an additional or replacement sound
card enabling studio quality sound to be mixed in. About $500 is the additional
cost.
(4) Production Library This runs about $600 for a starter set of CD’s to
enable us to produce radio quality commercials with music bed and stinger backgrounds.
This is all royalty free music.
(5) Microphone: This is a studio quality mic. We only need one for now and that
one can be moved from Broadcast ot Production Computer as needed.
(6) Web Development: I am guesstimating here, but I should be fairly accurate.
I may have to upgrade this amount but we won’t need it right away. This
is for the development of the additional radio pages we discussed. Now Playing,
Request, Playlist, Song Info, Artist or Host or Guest Card pages, and schedule
of programming. I figured 6 pages at $500 per page cost to develop. Since I already
have software with much of the necessary code provided, this should be enough.
(7) Finally the amount under additional cash and new current borrowing totaling
$12,300.00 represents the amount that will be needed to cover the initial Capital
Expenditures as well as the first month’s salary while we are selling the
progrram.
Appendix
Monthly Breakdown Projections
Religion Figures:
Name
US Numbers
World Numbers
Buddhism
1,000,000
360,000,000
Spiritism
116,000
14,000,000
Unitarian
600,000
800,000
Unity
1,000,000
1,200,000
Religious Science
400,000
500,000
Bahai
84,000
6,000,000
Scientology
55,000
600,000
Neo Pagan
768,000
1,000,000
Humanist
49,000
100,000
Deist
49,000
75,000
Taoists
40,000
1,000,000
Eckankar
26,000
75,000
Native American
47,000
Non Religious Secular
27,000,000
Seventh Day Adventists
724,000
11,000,000
Christian (10% of Total)
15,900,000
Sales Forecast:
Sales Forecast 2007-2008
Sep
Oct
Nov
Dec
Jan
Feb
Commercial Advertising
$1,560.00
$2,040.00
$6,600.00
$4,080.00
$4,560.00
Program Sponsorships
$300.00
$500.00
$700.00
$800.00
$1,000.00
Talk Show Hosting
$700.00
$900.00
$2,200.00
$2,000.00
$2,500.00
Web Banners
$500.00
$900.00
$1,800.00
$1,200.00
$1,600.00
Syndicate Member Ad Sales
$360.00
$420.00
$600.00
$720.00
$900.00
CD/Music/Other Sales
$110.00
$220.00
$1,100.00
$500.00
$800.00
News Sponsorships
$0.00
$0.00
$0.00
$0.00
$0.00
Total Income
$3,530.00
$4,980.00
$13,000.00
$9,300.00
$11,360.00
Units of Sales
Commercial Advertising ($120 per month)
13.0
17.0
55.0
34.0
38.0
Program Sponsorships ($100 per month for 100 liners)
3.0
5.0
7.0
8.0
10.0
Talk Show Hosting ($100 per month for 1 hour show)
7.0
9.0
22.0
20.0
25.0
Syndicate Membership Ad Sales ($30 per month)(25% of $120)
12.0
14.0
20.0
24.0
30.0
Web Banners ($100 per month per banner)
5.0
9.0
18.0
12.0
16.0
CD/Music/Other Sales
0.0
0.0
0.0
0.0
0.0
Sales Forecast 2008
Mar
Apr
May
Jun
Jul
Aug
Total Year
Commercial Advertising
$5,040.00
$8,040.00
$10,080.00
$14,040.00
$16,080.00
$16,800.00
$88,920.00
Program Sponsorships
$1,500.00
$2,500.00
$3,000.00
$3,500.00
$4,000.00
$4,000.00
$21,800.00
Talk Show Hosting
$3,000.00
$3,500.00
$4,000.00
$4,000.00
$4,000.00
$4,000.00
$30,800.00
Web Banners
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$18,000.00
Syndicate Member Ad Sales
$1,200.00
$1,500.00
$1,800.00
$2,100.00
$2,400.00
$2,700.00
$14,700.00
CD/Music/Other Sales
$1,500.00
$1,500.00
$1,500.00
$2,000.00
$2,000.00
$2,000.00
$13,230.00
News Sponsorships
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Income
$14,240.00
$19,040.00
$22,380.00
$27,640.00
$30,480.00
$31,500.00
$187,450.00
Units of Sales
Commercial Advertising ($120 per month)
42.0
67.0
84.0
117.0
134.0
140.0
741.0
Program Sponsorships ($100 per month for 100 liners)
15.0
25.0
30.0
35.0
40.0
40.0
218.0
Talk Show Hosting ($100 per month for 1 hour show)
30.0
35.0
40.0
40.0
40.0
40.0
308.0
Syndicate Membership Ad Sales ($30 per month)(25% of $120)
40
50
60
70
80
90
490
Web Banners ($100 per month per banner)
20
20
20
20
20
20
180
CD/Music/Other Sales
0
0
0
0
0
0
0
Personnel:
Personnel 2007-2008
Sep
Oct
Nov
Dec
Jan
Feb
Tom Averna (Manager)
$1,600.00
$1,600.00
$1,600.00
$2,000.00
$2,500.00
$2,500.00
Production Director
$0.00
$0.00
$0.00
$1,500.00
$1,500.00
$1,500.00
Music Director
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
News Director
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Admin Assistant
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Computer-Sound Tech P/T
$0.00
$0.00
$0.00
$500.00
$500.00
$500.00
Accountant-Bookkeeper P/T
$0.00
$0.00
$0.00
$600.00
$600.00
$600.00
Total Monthly Payroll
$1,600.00
$1,600.00
$1,600.00
$4,600.00
$5,100.00
$5,100.00
Total Annual Payroll
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Personnel 2008
Mar
Apr
May
Jun
Jul
Aug
Total Year
Tom Averna (Manager)
$3,000.00
$3,000.00
$3,000.00
$3,000.00
$3,000.00
$3,000.00
$29,800.00
Production Director
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$1,500.00
$13,500.00
Music Director
$0.00
$0.00
$0.00
$0.00
$0.00
$1,500.00
$1,500.00
News Director
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Admin Assistant
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Computer-Sound Tech P/T
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$4,500.00
Accountant-Bookkeeper P/T
$600.00
$600.00
$600.00
$600.00
$600.00
$600.00
$5,400.00
Total Monthly Payroll
$5,600.00
$5,600.00
$5,600.00
$5,600.00
$5,600.00
$7,100.00
$54,700.00
Total Annual Payroll
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$54,700.00
Profit and Loss Spreadsheet:
Profit and Loss 2007-2008
Sep
Oct
Nov
Dec
Jan
Feb
Total Income
0
$0.00
$3,530.00
$4,980.00
$13,000.00
$9,300.00
$11,360.00
Expenses:
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Payroll
$1,600.00
$1,600.00
$1,600.00
$4,600.00
$5,100.00
$5,100.00
Depreciation
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
Rent/Lease Studio
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
Utilities
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
Payroll Insurance (7%) WorkComp, Unemp, Liab, Prop
$112.00
$112.00
$112.00
$322.00
$357.00
$357.00
Payroll Taxes (10%)
$160.00
$160.00
$160.00
$460.00
$510.00
$510.00
Commissions (15%)
$0.00
$529.50
$747.00
$1,950.00
$1,395.00
$1,704.00
Office Supplies
$300.00
$300.00
$300.00
$300.00
$300.00
$300.00
Phone
$150.00
$150.00
$150.00
$150.00
$150.00
$150.00
Business Cable
$150.00
$150.00
$150.00
$150.00
$150.00
$150.00
Royalties (6% of Revenue)
$100.00
$100.00
$298.80
$780.00
$558.00
$681.60
Subscriptions
$0.00
$0.00
$0.00
$100.00
$100.00
$100.00
Promo Trips
$0.00
$0.00
$0.00
$100.00
$100.00
$100.00
Software Support
$0.00
$0.00
$0.00
$75.00
$75.00
$75.00
Music and Software Budget
$0.00
$0.00
$0.00
$50.00
$50.00
$50.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Expenses
$3,247.00
$3,776.50
$4,192.80
$9,712.00
$9,520.00
$9,952.60
Gross Profit
0.00
3247.00
246.50
787.20
3288.00
220.00
1407.40
Other Income
0
$3,500.00
$0.00
$0.00
$0.00
$0.00
$0.00
Net Profit
0.00
253.00
6.50
793.70
4081.70
3861.70
5269.10
Profit and Loss 2008
Mar
Apr
May
Jun
Jul
Aug
Total Year
Total Income
$14,240.00
$19,040.00
$22,380.00
$27,640.00
$30,480.00
$31,500.00
$187,450.00
Expenses:
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Payroll
$5,600.00
$5,600.00
$5,600.00
$5,600.00
$5,600.00
$7,100.00
$54,700.00
Depreciation
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$900.00
Rent/Lease Studio
$500.00
$500.00
$500.00
$500.00
$500.00
$500.00
$6,000.00
Utilities
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$1,200.00
Payroll Insurance (7%) WorkComp, Unemp, Liab, Prop
$392.00
$392.00
$392.00
$392.00
$392.00
$497.00
$3,829.00
Payroll Taxes (10%)
$560.00
$560.00
$560.00
$560.00
$560.00
$710.00
$5,470.00
Commissions (15%)
$2,136.00
$2,856.00
$3,357.00
$4,146.00
$4,572.00
$4,725.00
$28,117.50
Office Supplies
$300.00
$300.00
$300.00
$300.00
$300.00
$300.00
$3,600.00
Phone
$150.00
$150.00
$150.00
$150.00
$150.00
$150.00
$1,800.00
Business Cable
$150.00
$150.00
$150.00
$150.00
$150.00
$150.00
$1,800.00
Royalties (6% of Revenue)
$854.40
$1,142.40
$1,342.80
$1,658.40
$1,828.80
$1,890.00
$11,235.20
Subscriptions
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$900.00
Promo Trips
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$900.00
Software Support
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$675.00
Music and Software Budget
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$450.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$121,576.70
Total Expenses
$11,142.40
$12,150.40
$12,851.80
$13,956.40
$14,552.80
$16,522.00
$121,576.70
Gross Profit
3097.60
6889.60
9528.20
13683.60
15927.20
14978.00
65873.30
Other Income
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Net Profit
8366.70
15256.30
24784.50
38468.10
54395.30
69373.30
69373.30