Third Coast Sound

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Third Coast Sound is a recording studio in Tennessee. We record bands and solo artists, mix and master their songs, and produce podcasts and voiceovers in a treated room with professional equipment. Our clients are musicians, podcasters and small businesses who want a clear, polished sound without owning a studio.

The problem is simple. Home recordings often sound thin, and many artists do not have a good room, good microphones or someone to help them get the best performance. We provide the room, the gear and an engineer who listens.

Here is what our numbers show. We expect sales of $124,500 in Year 1, growing to $225,720 by Year 5 as we add engineers, repeat artists and podcast clients. We expect a loss of about $6,700 in Year 1 while we build our client base, then a profit from Year 2 (about $2,100), growing to about $24,400 by Year 5.

We need $115,000 in total. That covers $89,500 in startup costs (microphones and recording equipment, monitors, a treated room, computers, the lease deposit, insurance and branding) and a cash cushion for the first months. I am putting in $25,000 of my own money, and I am asking for a $85,000 SBA loan plus $5,000 from an investor or partner.

I am Marcus Reed, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Third Coast Sound will be a limited liability company (LLC) in Tennessee, owned by Marcus Reed. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. A recording should capture the artist, not the engineer's taste. We listen first, we are honest about what will help and we protect every client's work.

What we offer:
- Studio time. Hourly recording for tracking and overdubs with an engineer.
- Mixing and mastering. Mixing and mastering per song, from our own sessions or from files recorded elsewhere.
- Podcast production and voiceover. Recording, editing and delivery for podcasts and voice work.
- Later, as we grow: live session videos and music lessons. The numbers in this plan do not include these.

The space. In Year 1 we will lease about 1,200 square feet with a control room, a live room and a small lounge. We budget $24,000 a year ($2,000 a month) for rent and utilities, and the plan assumes this grows about 6% a year.

Licenses, rights and insurance. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and check zoning and the lease for sound rules. We will carry general liability insurance, equipment insurance and workers' compensation once we hire. Clients own their recordings, and we do not claim any rights to their music. Clients are responsible for clearing any cover songs or samples they use, and we do not record or release material we know infringes someone's rights.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will ask at least 20 local artists and podcasters what they pay and want, visit at least 5 studios, check the zoning and lease rules and line up at least 10 clients. If the numbers do not match this plan, I will change the plan before I spend money.

Problem & Opportunity

Making a good recording is harder than it looks.

1. Poor rooms. Home recordings often have echo and noise.
2. Equipment costs. Good microphones and monitors are expensive.
3. Lack of guidance. Artists want an engineer who helps them perform and shapes the sound.
4. Unclear prices. Some studios do not explain what is included.
5. Finishing the work. Mixing and mastering take skill and good ears.

How we will find out if people want this before we spend money. I will ask at least 20 artists and podcasters what they pay and want, and ask at least 10 to commit to a session. Our Year 1 plan needs about 1,060 studio hours, 155 songs mixed and 190 podcast hours.

Products & Services

What we sell. We have three services, each priced simply.

1. Studio time. The plan assumes an average of about $75 per hour in Year 1, rising to about $87 by Year 5. Supplies, wear and utilities cost about $6 per hour. We expect about 1,060 hours in Year 1, growing to about 1,510 a year by Year 5.
2. Mixing and mastering. The plan assumes about $180 per song in Year 1, rising to about $204, with about $15 per song in direct costs. We expect about 155 songs in Year 1, growing to about 260.
3. Podcast production and voiceover. The plan assumes about $90 per hour in Year 1, rising to about $102, with about $8 per hour in direct costs. We expect about 190 hours in Year 1, growing to about 405.

Our prices. A posted hourly rate, a package price for a day of tracking, and a price per song for mixing and mastering, with a deposit to book.

How it works for a client:
1. The client books a pre-session call to plan songs, instruments and time.
2. We set up the room and record with the client.
3. We deliver rough mixes within a day and finished files after revisions agreed in writing.
4. The client keeps all rights to their music and receives the session files.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for supplies, wear and utilities. Our plan shows about 92% in Year 1. That money pays the engineers, rent, software and other bills. Pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Bands and solo artists making demos, singles and albums.
- Podcasters and small businesses with audio content.
- Voice actors and churches.

Where we will work. Clients within about 45 minutes of the studio, and remote mixing and mastering clients anywhere.

How we sized the plan. Our Year 1 plan needs about 1,060 studio hours, a handful a day on most days. I will check the real numbers by talking to artists before spending money.

Season. Fall and winter are busy for recording. The numbers show a yearly average.

Competitive Landscape

Other choices clients have:
1. Other recording studios, some of which are well known, so price and fit matter.
2. Home studios and bedroom producers.
3. Large commercial studios.
4. Doing it themselves with free software.

How we will win clients: a well-treated room, an engineer who listens, clear prices, fast delivery and respect for the client's rights. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How clients will find us.
- A website with samples, rates and online booking.
- A free Google business listing and music community groups.
- Local venues, open mics, music stores and teachers who send artists.
- Podcast communities, with an intro package for new shows.
- A referral thank-you: a client who refers an artist gets free studio time.

Marketing budget. About $4,800 a year in Year 1 (about $400 a month), growing about 8% a year. The sign, website and portfolio are paid for from startup costs ($4,000).

Operations Plan

How the business runs day to day.

The studio. A treated control room and live room with microphones, preamps, monitors, instruments and a computer system.

A normal session:
1. Set up the room, check the gear and meet the client.
2. Record, play back and give feedback, saving the session often.
3. Back up the files at the end of every session.
4. Edit, mix or master on separate days and deliver files by a shared link.

Safety and hearing. We keep monitor levels safe, offer hearing protection, keep cables tidy and have clear exits. We keep client files private, back them up in two places and delete them only with the client's written agreement.

Equipment. About $55,000 to start: microphones, preamps and an interface, monitors and a control room desk, instruments and stands and computers with storage. We set aside about $3,000 a year after that to replace and add gear.

Running costs in Year 1: rent and utilities about $24,000, software and plug-in subscriptions about $4,800, marketing about $4,800, business and equipment insurance about $3,000, equipment maintenance about $3,600, and accounting, licenses and legal about $3,000. That is $43,200 in all.

Payment. Clients pay a deposit to book and the balance at the end of the session, so what is owed to us is small, mostly from mixing clients and podcasters billed after delivery.

Management & Organization

Who runs the business. Marcus Reed, owner and lead engineer. As owner I will record and mix, book clients and handle the money. I plan to pay myself $36,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Assistant engineer (part-time): one in Years 1 and 2 and two from Year 3, at about $20,000 a year each.
- Studio manager (part-time): one starting in Year 3, at about $22,000 a year.

We hire people who are patient, have good ears and are good with artists, and train everyone on our workflow and file handling.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands studios, a business attorney for a one-time review of the lease and client contract, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (3 to 5 months ahead): ask at least 20 artists and podcasters what they pay, line up at least 10 clients, check zoning and lease sound rules, register the LLC and get an EIN, open a business bank account, get insurance quotes, find a space, have an attorney review the lease and client contract, buy and test equipment and build the room treatment. Sign the lease only after the clients are lined up.
- Year 1: open with the owner and one part-time engineer, with about 1,060 studio hours, $124,500 in sales and a loss of about $6,700.
- Year 2: grow repeat artists, with about 1,090 studio hours, $138,030 in sales and a profit of about $2,100.
- Year 3: add a studio manager and a second engineer, with about 1,480 studio hours, $201,000 in sales and a profit of about $12,100.
- Year 4: grow podcast clients, with about 1,490 studio hours, $214,755 in sales and a profit of about $19,300.
- Year 5: grow to about 1,510 studio hours a year with a team of four, $225,720 in sales and a profit of about $24,400.
Growth depends on booking repeat artists, earning referrals and keeping the room and gear in good shape, so treat the later years as goals, not promises.

What we check every week: studio hours booked, songs mixed, podcast clients, repeat rate, turnaround time, reviews and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $115,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $89,500, listed item by item in the Startup Costs section: $24,000 for microphones, preamps and audio interface, $14,000 for monitors, headphones and a control room desk, $9,000 for instruments, amps and stands for the live room, $8,000 for computers, storage and backup drives, $22,000 for acoustic treatment, soundproofing and electrical work, $4,000 for lease deposit and first month of rent, $500 for business license and local permits, $2,500 for legal, contract and accounting setup, $4,000 for sign, website and portfolio, and $1,500 for first insurance payment.
- A cash cushion of about $24,800: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $114,300, rounded up to the nearest $500: $114,500.
We are raising $500 more than that, $115,000 in all, to leave extra room for loan payments in the first years and for new gear.

Where the money comes from:
- My own money: $25,000.
- Amount requested as a loan: $85,000.
- From an investor or partner: $5,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a loss of about $6,700 in Year 1 while we build our client base, then a profit from Year 2 (about $2,100), growing to about $24,400 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $52,500, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $1,257 a month (about $15,080 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with a small treated room at home or in a shared space (check the rules), taking a few sessions a week while keeping your current job. Startup can be roughly $8,000 to $15,000 for microphones, an interface, monitors and treatment. Get your own quotes.
- Phase 2: once you are booked most days, lease a studio space and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your rate sheet, client contract and sample portfolio.
- A letter or quote for the space, and the lease once you have it.
- Quotes for the microphones, monitors and room treatment.
- Letters from artists who would book you.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Studio Time (Tracking and Overdubs): about $75 per hour in Year 1, rising to $87; about $6 per hour in direct costs, rising to $6.80; about 1,060 hours in Year 1, growing to 1,510.
- Mixing and Mastering: about $180 per song in Year 1, rising to $204; about $15 per song in direct costs, rising to $17; about 155 songs in Year 1, growing to 260.
- Podcast Production and Voiceover: about $90 per session hour in Year 1, rising to $102; about $8 per session hour in direct costs, rising to $8.80; about 190 hours in Year 1, growing to 405.
- Pay: Owner / Lead Engineer $36,000 (1/1/1/1/1); Assistant Engineer (part-time) $20,000 (1/1/2/2/2); Studio Manager (part-time) $22,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: studio rent & utilities $24,000, software and plug-In subscriptions $4,800, marketing $4,800, business and equipment insurance $3,000, equipment maintenance and cables $3,600, and accounting, licenses & legal $3,000. These grow between 5% and 10% a year as the business grows.
- Clients pay a deposit and the balance at the session, but mixing and podcast clients are billed after delivery. At the end of Year 1 about $7,470 (6% of Year 1 sales) is owed to us by those clients.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs