Do you want to start a concert promotion and need to write a plan? If YES, here is a sample concert promoter business plan template & FREE feasibility report.
If you are a good event organizer and you have what it takes to organize and promote events that people will be willing to pay for, then you should consider starting a business that is involved in the promotion of concerts and related events. This is one business that is thriving in the united states of America and of course in most countries of the world.
As a concert promoter, you are expected to work on behalf of concert organizers in order to help them promote their concerts so as to get all available seats booked. They also have to spend a lot of money in marketing to boost ticket sales. At the end of the day, the most important thing is for them to achieve their primary objective and that is to make profit.
If you decided to start a concert promotion business, you are expected to map out strategies on how to a raise startup capital, how to run the business, how to promote the business as well as how to make profits. Here is a sample concert promoter business plan template that can give you the needed direction to start yours.
A Sample Concert Promoter Business Plan Template
1. Industry Overview
Players in the Concert and Event Promotion industry create, manage and promote live performances and events, ranging from concerts and theater performances to state fairs and air shows. Some promoters lease space from stadium-, arena- and theater-owners, while others own and operate venues.
A 2019 Deloitte survey of millennials finds that most value experiences: 57 percent of respondents said they prioritized travel and seeing the world over owning a home. For artists, appearing at music concerts is an easier way to make money than depending on record sales or long tours.
A recent report published by IBISWorld shows that the concert and event promotion industry’s success has been the result of continued demand for live entertainment and its value to US consumers. Over the five years to 2019, industry revenue is expected to grow at an annualized rate of 4.6 percent to $33.3 billion, including an increase of 2.3 percent in 2019 alone.
The current period is marked by the growing success of music concerts and rising ticket sales. Billboard Magazine estimates that over 32.0 million Americans attended at least one concert or related event in 2015. These trends, in conjunction with growing per capita disposable income, have fueled industry growth.
The concert and event promotion industry is thriving and viable. Statistics has it that in the United States of America alone, the concert and event promotion industry generate over $35 billion annually from more than 81,535 registered and licensed concert and event promotion companies.
The industry is responsible for the employment of over 277,749 people. Experts project the music groups and artist industry to grow at a 4.0 percent annual rate between 2015 and 2022. Please note that the companies holding the largest market share in the Concert & Event Promotion in the US industry are Live Nation Entertainment Inc. and The Anschutz Corporation.
No doubt the concert and event promotion industry cannot be said to be oversaturated despite the fact that the entry bar is dependent on sponsors. As a concert promotion company, if you are creative and hardworking, you can successfully create your own market. It is safe to say the industry is still growing especially with the advent of new social media platforms.
Some of the factors that encourage entrepreneurs to start their own concert promotion business could be that the business is easy to set up, the startup capital is indeed affordable and the running cost can be put at the minimum level; you can actually start your own concert promotion business from the comfort of your home.
All you need to do is to create an office somewhere in your house but you must ensure that you have robust relationship with sponsors.
One good thing about starting a concert promotion business is that even if you decided to start it in the United States of America, your market will not be restricted to entertainers or musical artists in the U.S.; the world will be your target market, many thanks to the internet that has made the world a global village.
All you need to do is to strategically position your concert promotion business on the internet and you will be amazed that international musical artists would want to perform in your concert.
2. Executive Summary
Eric Moore® Concert Promoters, Inc. is an all – round concert and event promotion company with the capacity of organizing and promoting world – class music concerts within the United States and all across the globe. The company will be based in East Rutherford – New Jersey.
We are aware that to run an all – round concert promoter outfit can be demanding which is why we are well trained and equipped to perform excellently well and to attract top – class music artistes from within the United States and other countries of the world.
Eric Moore® Concert Promoters, Inc. is a client-focused and result driven concert and event promotion company that creates, manages and promotes live performances and events, ranging from concerts and theater performances to state fairs and air shows. We will also lease space from stadium-, arena- and theater-owners, and in the nearest future we hope to own and operate our own venues.
At Eric Moore® Concert Promoters, Inc., our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in a wide variety of concert and event promotions.
Eric Moore® Concert Promoters, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Our plan is to position the business to become the leading brand in the concert and event promotion line of business in the whole of New Jersey, and also to be amongst the top 20 concert and event promotion companies in the United States of America within the first 10 years of operation.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are confident that East Rutherford, New Jersey is the right place to launch our business before spreading to other parts of the United States.
Eric Moore® Concert Promoters, Inc. is owned by Mr. Eric Moore. Mr. Moore who is the Chief Executive Officer of the organization is a notable figure in the concert and event promotion industry in the United States and he graduated from both University of California – Berkley (First Degree), and University of Harvard (MSc.).
3. Our Products and Services
Eric Moore® Concert Promoters, Inc. is going to offer varieties of services within the scope of the concert and event promotion industry in the United States of America. Our intention of starting our concert and event promotion company is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.
Our business offerings are listed below;
- Organizing and promoting music concerts and related events at community, city, state and international stages
- Managing venues (e.g. arenas, amphitheaters, clubs and stadiums)
- Booking talent, including musicians and performers, for concert events
- Organizing logistics for events (e.g. concerts, tours, shows, festivals and pageants)
4. Our Mission and Vision Statement
- Our vision is to build a concert and event promotion company brand that will attract the highest number of attendees in any music concert not just in East Rutherford – New Jersey, but throughout the United States of America.
- Our mission is to work with artistes to bring their creativity to life on stages around the world and to produce more concerts, sells more tickets, and connect more brands to music than any of our competitors in the United States of America.
Our Business Structure
Eric Moore® Concert Promoters, Inc. will build a solid business structure that can support the growth of our business. The fact that we want to become one of the leading concert and event promotion companies in the United States makes it necessary to deliberately build a well – structured business from the onset.
We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.
One of our guiding principles is to take care of our own. That applies to our artists, fans, partners, and of course, our employees. Below is the business structure that we will build Eric Moore® Concert Promoters, Inc.;
- Chief Executive Officer
- Concert and Event Promotion Manager
- Admin and HR Manager
- Marketing Executive
- Accountant
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Concert and Event Promotion Manager
- Responsible for drawing up contracts and other legal documents for the company
- Advise artists and the organization accordingly before promoting concerts and related events
- Responsible for booking talent, including musicians and performers, for events
- Responsible for interviewing and hiring vendors, selecting and ordering materials, negotiating rates, coordinating the sequence of events, following up with guests and vendors and producing full-scale events.
- Plan, design and produce music concert events while managing all project delivery elements within time limits
- Liaise with artists and sponsors to identify their needs and to ensure customer satisfaction
- Conduct market research, gather information and negotiate contracts prior to closing any deals
- Provide feedback and periodic reports to stakeholders
- Propose ideas to improve provided services and event quality
- Organize facilities and manage all events’ details such as decor, catering, entertainment, transportation, location, invitee list, special guests, equipment, promotional material etc.
- Ensure compliance with insurance, legal, health and safety obligations
- Specify staff requirements and coordinate their activities
- Cooperate with marketing and PR to promote and publicize events
- Proactively handle any arising issues and troubleshoot any emerging problems on the event day
- Conduct pre- and post – event evaluations and report on outcomes
- Proactively handle any arising issues and troubleshoot any emerging problems on the event day
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Marketing Executive
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on sponsor leads and contacts; participates in the structuring and financing of projects; assures the completion of concerts and related events.
- Writing winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Accountant
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Client Service Executive
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
Eric Moore® Concert Promoters, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured concert and event promotion company that can favorably compete in the industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Eric Moore® Concert Promoters, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Eric Moore® Concert Promoters, Inc.;
- Strength:
Our core strength lies in the power of our team and the location of our business. We have a team that can organize and effectively promote top-notch musical concerts, attract first – class music artists from any part of the world. We are well positioned and we know we will attract loads of sponsors and attendees in any location we choose to organize and promote our music concerts and related events.
- Weakness:
As a new concert promotion company, it might take some time for our organization to break into the market and attract some of the high paying sponsors and well – established music artists to perform in our music concerts; that is perhaps our major weakness.
- Opportunities:
Household disposable income, which is affected by changes in interest rates, wages, taxes and employment, can influence demand for and expenditure on sporting and performing arts events held by Concert and Event Promotion industry operators.
Since industry events are discretionary, lower per capita disposable income results in weaker demand. Per capita disposable income is expected to increase in 2023, representing a potential opportunity for the industry.
- Threat:
Corporate profit is a useful indicator of industry success, as large companies often purchase corporate or premium seating at events to entertain clients. Moreover, companies with higher advertising budgets are likely to sponsor and advertise at events. As corporate profit rises, so does corporate spending on industry services. Corporate profit is expected to decrease in 2023, representing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
The concert and event promotion and entertainment industry is in a continuous state of evolution and as such, ground breaking strategies and ideas that are once highly successful are no longer as productive as they were in time past.
Close observation of the trend in the industry reveals that the past few years have seen the rise and proliferation of social media and new tech tools. The trend also extends to increased attention paid to engagement and new market segments, adopting eco-friendly measures and sustainability when planning events, and of course increase in demands from event sponsors.
As a matter of fact, social media has now become one of the most important tools music concert promoters/organizers leverage on to disseminate information about their events, interact with attendees, solicit feedback, and create year-round engagement with their target audience.
Furthermore, new software apps and emerging technology have made it easier for concert promoters to gather all the needed data and information that will help them plan and project for the future.
When we talk about the business side, music concerts have become more streamlined and shaped by the advent of big music promoters over the last decade. Organizing and promoting music concerts can somehow be challenging, between having to pay artistes enough to secure their performances, needing to sell a certain number of tickets in order to be successful, the additional costs of insurance and the risks of bad weather.
Large corporate live music concert promoters, such as Live Nation or AEG Live, have in recent years, acquired hefty controlling stakes in some of the country’s biggest festivals. Their organizational capacity helps to manage ticketing and other factors that come into play in organizing a festival.
After purchasing a controlling interest in Bonnaroo in 2015, Live Nation this year bought the remaining stake to gain total control of the festival. Live Nation also controls, or partially controls, festivals like Lollapalooza and Austin City Limits, among several dozen others.
Lastly, music itself has changed, as well, making festivals a bigger attraction for listeners. As streaming becomes one of the most popular ways to listen to music, sales of tickets and merchandise make up the bulk of fans’ expenditures on music. Because listening to music has become practically free (or subscription-based), the access is unprecedented—and makes live music that much more special.
8. Our Target Market
As an all – round concert and event promotion outfit, Eric Moore® Concert Promoters, Inc. organized a wide range of music concerts and related events hence we are well trained and equipped to service a wide range of clientele.
Our target market cuts across people of different class and people from all walks of life, local and international organizations (for sponsorship) as well a wide range of attendees. Below is a list of the people and organizations that we have specifically design our products and services for;
- Blue Chips Companies (Sponsorship)
- Corporate Organizations (Sponsorship)
- Religious Organizations (Sponsorship)
- Music Artists (Performers)
- Households/Families (Attendees)
- Residents in the locations where we will host our music concerts (Attendees
- Tourists (Attendees)
Our Competitive Advantage
We are quite aware that to be highly competitive in the concert and event promotion and entertainment industry means that you should be able to attract first – class music artists and you should be able to meet the expectations of both participants and sponsors of the concert.
Eric Moore® Concert Promoters, Inc. might be a new entrant into the industry in the United States of America, but the management of the business are highly qualified concert and event promotion professionals in the United States. These are part of what will count as a competitive advantage for us.
Eric Moore® Concert Promoters, Inc. does not believe in bureaucracy and we don’t mandate synergy. We keep our corporate teams small, because we trust that our decentralized divisions know how to make the best decisions for their businesses.
While we give a tremendous amount of independence to our employees, we are also precise and exacting about performance. There is no hiding behind process here. Employees are evaluated on their results and concrete contributions to our business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Eric Moore® Concert Promoters, Inc. is established with the aim of maximizing profits in the concert and event promotion and entertainment industry and we are going to go ensure that we do all it takes to attract clients on a regular basis and sign retainer-ships with them.
Eric Moore® Concert Promoters, Inc. will generate income by offering the following services;
- Organizing and promoting music concerts and related events at community, city, state and international stages
- Managing venues (e.g. arenas, amphitheaters, clubs and stadiums)
- Booking talent, including musicians and performers, for concert events
- Organizing logistics for events (e.g. concerts, tours, shows, festivals and pageants)
10. Sales Forecast
We are well positioned to take on the available market in the United States and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of organizing music concerts and grow the business and our clientele base beyond East Rutherford to other cities in New Jersey and other states in the United States.
We have been able to examine the concert and event promotion and entertainment market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Eric Moore® Concert Promoters, Inc., it is based on the location of our business and the wide range of concert and related events promotion services that we will be offering;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $650,000
- Third Fiscal Year (FY3): $1.1 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions amongst concert and event promotion companies in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing (sourcing for sponsorship).
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place.
Our goal is to grow our concert and event promotion company to become one of the top 20 in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the East Rutherford but also in other cities in the United States of America.
Eric Moore® Concert Promoters, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to corporate organizations, music artiste’s managers and key stake holders in East Rutherford and other cities in New Jersey.
- Promptness in bidding for concert and event promotion/event management contracts
- Advertise our business in relevant business magazines, newspapers, TV and radio stations
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of sponsors in order to work with their budgets and still deliver quality concert and event promotion events
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market (sponsors, music artistes and attendees).
We are set to take the concert and event promotion and entertainment industry by storm which is why we have made provisions for effective publicity and advertisement of our concert and event promotion company. Below are the platforms we intend to leverage on to promote and advertise Eric Moore® Concert Promoters, Inc.;
- Place adverts on both print (community – based newspapers and entertainment and lifestyle magazines) and electronic media platforms
- Sponsor relevant community – based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our Billboards in strategic locations all around East Rutherford – New Jersey.
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
12. Our Pricing Strategy
When it comes to pricing for such a business as concert and event promotion, the pricing package is in two – folds. Firstly, pricing packages for sponsors and secondly prices for attendees (music concert access fee/ticket).
At Eric Moore® Concert Promoters, Inc. we will keep our fees below the average market rate for all of our sponsors and attendees by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special sponsorship discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who want to sponsor our music concerts and related events.
- Payment Options
The payment policy adopted by Eric Moore® Concert Promoters, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Eric Moore® Concert Promoters, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for sponsorship deals and purchase of tickets without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.
13. Startup Expenditure (Budget)
Starting a concert and event promotion business can be cost effective because on the average, you are not expected to acquire expensive machines and equipment.
Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to equip the office, purchase the required software applications, pay bills, promote the business and obtain the appropriate business license and certifications.
These are the key areas where we will spend our startup capital on;
- The total fee for incorporating the Business in the United States of America – $750.
- The budget for basic insurance policy covers, permits and business license – $2,500
- The amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
- The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $ 5,000
- The cost for organizing and promoting our first music concerts (most venues are paid up front, and they get paid whether the concert is successful or not. The average cost to rent an arena is around $20,000 / night while the average cost to rent an amphitheater is around $10,000 / night. Smaller clubs cost less, but their capacity is also less.) – $50,000
- The cost of launching our official Website – $600
- Budget for paying at least one employee for 3 months plus utility bills – $10,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous: $1,000
Going by the report from the market research and feasibility studies conducted, we will need over two hundred and fifty thousand (250,000) U.S. dollars to successfully setup a medium scale but standard concert and event promotion business in the United States of America.
Generating Funds/Startup Capital for Eric Moore® Concert Promoters, Inc.
Eric Moore® Concert Promoters, Inc. will be owned by Mr. Eric Moore. He decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Eric Moore® Concert Promoters, Inc. is to ensure that we continue to make available a wide range of sponsorship packages, tickets types, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills businesses is financial leakages. In order to plug financial leakages, the management of Eric Moore® Concert Promoters, Inc. adopted the use of payment machine and accounting software to run the business especially as it relates to the sale of tickets.
We are quite aware that our customers are a key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services.
Eric Moore® Concert Promoters, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re-training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Packaging Marketing/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with sponsors, venue managers, music artists, vendors and key players in the industry: In Progress