Business Plan Development Month 12

(Pictured above is the logo for my business plan)

From doing research there are many qualified and recognized “experts” as for as investors are concern. Investors are the people that usually know a lot about business plans although there are exceptions to every rule. Shark Tank is a television show aired on ABC and it features five renowned business people that have made millions of dollars from their own companies who are now trying to help out possible future entrepreneurs. Two of these investors stand out to me as I watched several episodes on hulu.com. The names of the investors are Daymond John and Kevin O’ Leary.

Something I did not know but from further research I found that Shark Tank is the United States version of Japan’s Dragon’s Den that airs on CBC and Kevin O’ Leary is an investor on both shows (http://www.cbc.ca/dragonsden). Mr. O’ Leary is from Canada and started off like many of business owners; he had no cash but a huge idea. His idea was to create software that helps children learn how to read. He came into the market in the early 1990’s and from 1995 to 1999 he acquired almost all of his software competitors. He sold his company to Mattel Toy Company for $3.2 Billion. He is now an investor for other entrepreneurs and like to invest in environmentally friendly businesses. He also has an investment company called O’ Leary Funds. His style on the show is ruthless and straight to the point (http://abc.go.com/shows/shark-tank).

There are several key factors that Mr. O’ Leary looks for in a business plan. The most important factor that he looks for is the financials section. After watching several shows I noticed that he wanted to know what the return on investment would be from a candidate. He seems to be the character on the show that is willing to take less risk when it comes to money but rightfully so. The next factor that he always asks up front if there is an existing business are how many sales has the owner achieved. If the sales are marginal, then it is highly unlikely that he would want to invest unless the business has an exclusive patent. The last thing he kept asking the potential business partner is what did they thing the company was worth. If someone numbers are off, then he is quick to tell them so plus that they are wasting his time. These factors are key because Mr. O’ Leary is concerned about the bottom line and that is recouping his investment plus whatever equity is owed to him. The pitfall with dealing with an investor like Mr. O’ Leary is the numbers not making sense.

Daymond John is another investor on the Shark Tank show. He is from Queens, New York and made his fortune in the fashion industry. The “Golden Era” of Hip Hop was in the 1980’s and during this time this genre produced superstars such as Run-DMC and LL Cool J. Both of these acts begin to wear apparel that would become their trademark. Run-DMC wore Adidas sneakers and LL Cool J wore a Kangol hat. These artists wearing the items lead to increased sales for both companies and Mr. John took notice of this. He began by starting a company with three close friends called FUBU (For Us By Us) and their first sales came from 800 t-shirts that they sold on the streets with their logo on the shirts. It was asking fellow Queens native and Hip Hop superstar LL Cool J to wear a FUBU shirt at photo shoot for ad campaigns and music videos for promotion that led to the company getting national exposure. This led to other celebrities such as Mariah Carey, Mary J. Blige, Boys II Men and Sean “Diddy” Combs to promote FUBU as well. Mr. John’s company took over a huge percentage in the urban apparel market. As of today FUBU has grossed over $6 Billion internationally (Lucas, Sloane 1999).

There are several key factors that Mr. John looks for in a business plan. The most important factor like Mr. O’ Leary previously is the financial section. Mr. John’s questions during the show are usually about how much sales have the company achieved and how much money has the owner put into the company. Having a record of sales helps a company get investors according to Mr. John but also making profit from the investment is imperative. The example that he back off immediately was about a lady that wanted more capital to help her business but it was not making any money. She invested $100,000 of her personal money but only had made about $20,000. This was a red flag so he did not make an offer to help her continue. His advice actually was to cut her losses and discontinue the business. What is critical here is her business is worthless because of these numbers and that will not attract investors so the pitfall here once again is the numbers not making sense. Lastly, Mr. John made it known that he is interested in growth.

There was not much of a difference between these two investors except one small thing in particular. They both were very concerned with the numbers and if they made sense. Unlike Mr. O’ Leary, Mr. John wants to like the business he invests in and Mr. O’ Leary wants the business to make profit. Mr. O’ Leary stated that he never lets his emotions get involved with a deal. The most important thing that I learned from this research is to have my numbers make sense and to show an estimated profit at some time. Even though I will be a start up business unlike some of the people that are participants of the Shark Tank I would still have to show that I could possibly generate sales. Mr. John was interested in growth so I could possibly put in my business plan more details about expanding and obtaining new personnel if the profits allowed such a thing.

Executive Leadership Activity 6

On the weekend of July 9th-11th I attended CLEO (Council on Legal Education Opportunity) seminar in Atlanta, Georgia. In order to participate in this event I had to write a one page letter stating why I would like to become an attorney and submit my undergrad gpa. I was accepted and everything was paid for including hotel, food and transportation. CLEO was founded in 1968 and focuses on diversifying the legal profession by helping minorities, low income and disadvantaged groups. This seminar was very helpful because I got to meet one on one with deans of admissions more in depth than the law school forum I attended in Miami in leadership activity 1. I even had one on one assessment of my personal statement. Everyone entering law school must have a personal statement written telling the school a little something about themselves and what makes the student different than the other average of 3000 people applying. Out of the 3000 usually about 150-300 students are chosen depending on the size of the school so one could see how imperative it is to stand out through the personal statement. I was given tips about how to prepare for the LSAT and I will take the test on October 9, 2010. I plan to be enrolled in law school by the fall of 2011. I feel through these leadership activities I have displayed the necessary skills needed to be a future great leader in the entertainment business.

Mobile Marketing and Commerce Month 11

I administered a survey to five of my friends with different backgrounds for this assignment. All of them are in my target audience for my business plan. Most of the thirteen questions were general questions about their mobile device use and a couple of questions were directly pertaining to my business plan. My goal was to see who would be open to pull advertising through the use of their mobile device. This assignment is something that I will continue to use because it will be better help me with understanding what my target audience wants and needs are.

Survey subject one is a 28 year old, African-American, male corporate attorney residing in New York City. He has been using a cell phone for nine years and is tech savvy. As the primary user of the cell phone he considers several different things when purchasing a cell phone. In the survey he stated that the mobile device has to have the following capabilities: GPS; ability to store music and other media; email and user-friendly functions. He upgrades his cell phone every two to three years because of advanced technology and wanting to have the latest upgrade. One of the things he would like for his cell phone to do that it currently does not is for the GPS to speak directly to him. His overall opinion about mobile advertising was that is does not sway him one way or another because he is extremely loyal to certain brands like for example the brand Apple. If Apple would to send him advertisements to his cell phone, then he would be receptive to it. He preferred style compared to function when it came to purchasing a cell phone. His exact answer was “fancy looking phones catch my eye more than plain phones with excellent functionality.”

Survey subject one primarily uses his mobile device for text messaging, listening to music, email, calls and GPS. There are features on his cell phone that require him to log on the Internet but in general he is not comfortable about giving out personal information in exchange for convenience or for exclusive content. His primary reason for choosing the provider was made by his mother. She purchased a cell phone for him when he was a sophomore in college so he could make long distance calls back home. The reason he has elected to stay with the provider is customer loyalty and Apple’s exclusive contract with AT&T since he has an iPhone. What he liked the most about his cell phone is it is a one-stop shop for the activities he spends a lot of time doing daily since he is an attorney. What he disliked the most is the data plan pricing, reception issues and dropped calls. He is not willing to receive advertisements via text messages from his favorite restaurant or artist because he is apprehensive about what the businesses would do with his personal information.

Survey subject two is a 26 year old, bi-racial (African-American/South American), female full-time student living in Germany. She has been using a cell phone for eight years and is tech savvy. As the primary user of the cell phone she considers style and price when purchasing a cell phone. She has not upgraded her phone in over three years but plans to do so when she comes back to the United States. One of the things she would like for her cell phone to do that it currently does not is better Internet access. Her overall opinion about mobile advertising is she is willing to be receptive to it. She preferred function compared to style when it came to purchasing a cell phone.

Survey subject two primarily uses her mobile device for talking and text messaging. She is not comfortable with exchanging personal information for convenience or exclusive content. The only feature that requires her to log on the Internet is instant messenger. Her choice of provider was the only choice for her because it was the only English provider in Germany. What she likes the most about her cell phone is text features. What she disliked the most are international plans. Although she would not be receptive to receiving advertisement via text messages from a restaurant for exclusive deals, she would be receptive to receiving advertisement about her favorite artist next performance in the local area.

Survey subject three is a 30 year old, African-American, female non-profit owner residing in South Carolina. She has been using a cell phone for thirteen years and is tech savvy. As the primary user of the cell phone she considers the following: great phone accessories, affordable calling plans and unlimited minutes and text. She upgrades every two years to get the contract price of the cell phone. She feels that her cell phone does everything for her personal and business needs. Her overall opinion about mobile advertising is that she embraces it and uses it for her own brand purposes. She preferred style compared to function when it came to purchasing a cell phone.

Survey subject three primarily uses her mobile device for calls, text messaging, email and social networking sites (Twitter, Facebook, YouTube, WordPress and TV.com). She is extremely comfortable with exchanging personal information in exchange for convenience and exclusive content. The features that require her to log onto the Internet are Gmail, Facebook, AIM, Skype, MSN messenger, Yahoo messenger and Twitter. Her answer about choosing a provider was a unique one because she said was forced into the provider through a merger. Her exact answer was “I did not choose Verizon, Alltel merged with them.” What she liked most about her cell phone is the option to either use the touch screen or slide up keyboard. What she disliked the most is that the touch screen sometimes freezes. She is willing to receive advertisements via text messages from her favorite restaurant or artist for exclusive deals and local performances.

Survey subject four is a 30 year old, African-American, female project manager residing in Washington state. She has been using a cell phone for twelve years and is tech savvy. As the primary user of the cell phone she considers the following when purchasing a cell phone: calendar management, user friendly and the ability to maneuver around various applications very swiftly. She upgrades once a year because of becoming bored with the cell phone she currently uses. One of the things she would like for her cell phone to have that it currently does not is a touch screen. The answer about how she felt about mobile advertising was so positive that I had to share it. Her reply was “I am satisfied with it overall. I am currently enrolled to receive promotional texts and emails (that are delivered directly to my phone in real time) from merchants such as Ikea, Borders and PF Changs, and I am comfortable receiving communication from them on current and/or upcoming deals and discounts. I think the idea/concept is genius as long as the consumer can control from who, and how often they receive the mobile advertising.” She preferred function compared to style when it came to purchasing a cell phone.

Survey subject four primarily uses her mobile device for managing her calendar, calls and email. She is comfortable with sharing personal information in exchange for convenience and exclusive content. The features that require her to log onto the Internet are instant messaging, Pandora and Sprint TV. She chose her provider because it received the best reception when she moved to Washington and chose to stay because of the follow up calls and emails from customer service. What she liked most about her cell phone is she gets emails real time and is able to manage her calendar. What she disliked the most is it has too many standard applications and functionalities that she does not use and it does not have a touch screen. She is willing to receive advertisements via text messages from her favorite restaurant or artist for exclusive deals and local performances.

Survey subject five is a 27 year old, Hispanic, female graduate student residing in New Mexico. She has been using a cell phone for nine years and is tech savvy. As the primary user of the cell phone it must have email capabilities when purchasing a cell phone. She typically upgrades her cell phone once a year because of constant changes with technology. One of the things she would like for her cell phone to do that it currently does not is the ability to edit pictures. Her overall opinion about mobile advertisement is that she is indifferent. She could not choose between style and function when it came to purchasing a cell phone because she likes both equally.

Survey subject five primarily uses her mobile device for email. She is not comfortable with sharing personal information in exchange for convenience and exclusive content. The features that she uses to log on the Internet are email, instant messenger and Facebook. She chose her provider because she used to work for them and continued service because of the price. What she liked the most about her cell phone is that is it user friendly and has an LCD screen. What she disliked about it is she cannot edit pictures. Although she would not be receptive to receiving advertisement from a restaurant for exclusive deals via text messages, she would be receptive to receiving advertisement about her favorite artist next performance in the local area.

This survey was very helpful and insightful with what I would like to do as for as advertisement for my business plan. Four out of five were willing to receive advertisements via text for an upcoming concert so that falls in line with my business plan since I have a venue/restaurant. Two out of five were willing to receive advertisements via text for an upcoming deal or discount for a restaurant. So to me this illustrates that I can get most of them to the concerts and possibly some of them will purchased food while they are attending a live show.

Survey Questions use in research:
1) Who is the primary user of your cell phone? What do you look for in a cell phone?

2) How often do you change or upgrade your cell phone? And why?

3) What would you like your cell phone or mobile device to do that it does not currently do?

4) How you do feel about mobile advertising overall?

5) In regards to your cell phone, is functionality or styling more important to you? How would you rate each on a scale of 1 to 10?

6) What do you primarily use your mobile device for? Ex: calls, text messages, check emails etc.

7) Are you comfortable with your personal information being broadcast over short distances in exchange for the added convenience or for exclusive content?

8) Are there features on your phone that require that you log onto the Internet? If so, which ones?

9) Why did you choose your provider? What are your reasons for staying with them?

10) What do you like the most about your cell phone?

11) What do you dislike about your cell phone?

12) Would you be willing to receive advertisements via text from your favorite restaurant that would offer you an exclusive deal or gift?

13) Would you be willing to receive advertisements via text from your favorite artist giving you details about their next performance in your town?

Internet Marketing and Web Search Month 10

In this assignment I had to create a wiki-style web page using Google Sites. Below is the set up I use for the wiki page.

By: Keith Harrison
https://sites.google.com/site/digitalimo/digital-media-artist-discoveries
Digital Media Artist Discoveries

Introduction
The days of walking up to an A&R and begging them to listen to your demo are rare in this new technology era. There are artist that still get discovered this old fashion way but now artists find it much easier to draw attention to themselves. The technology boom has afforded the unknown artist with free tools that can reach a wide audience that only record labels were use to providing. This is proven to be a real thorn into the sides of the record companies. If use properly, then digital media sites including Myspace, YouTube and SoundClick are extremely powerful for an unknown artist to reach their target audience.

Success Stories
After viewing Justin Bieber’s YouTube clips in 2007, Scooter Braun signed the young artist to a management agreement. Braun guided the young talent to a bidding war between two of the pop world’s biggest superstars Usher and Justin Timberlake. Both Usher and Timberlake were starting record labels of their own and were looking for talent to sign. Usher’s imprint US Records distributed through Sony Music Entertainment ultimately won the bidding war. This signing followed by his number one album, My World 2.0, has led to two world tours for the young singer. Bieber is the youngest solo male artist to reach number one the billboard charts coming close to the Legendary Stevie Wonder who reached this height at 13 while Bieber did it 16. The album features the number billboard hit “Baby” featuring hip hop superstar Ludacris and has over 150 million hits on YouTube.

After creating a Soundclick, MySpace and YouTube page, Soulja Boy Tell ‘Em found much success in 2007. He released an independent album on iTunes in March of that year including the soon to be hit “Crank That.” Crank That was a dance anthem created by the young artist. To accompany the song, he created a YouTube page featuring a video to instruct how to do the Crank That dance. The YouTube video now has over 74 million views as of 2010. Crank That also reached number one on the billboard charts in 2007.

References:
http://www.billboard.biz/bbbiz/content_display/industry/e3id9cb9e80bbe9e70cc01f20c23d255965 Justin Bieber’s number one album My World 2.0
http://www.billboard.com/artist/soulja-boy-tell-em/chart-history/933832#/artist/soulja-boy-tell-em/chart-history/933832 Soulja Boy Tell ‘Em chart billboard history

External links:
http://www.youtube.com/watch?v=8UFIYGkROII Soulja Boy Tell ‘Em youtube link
http://www.youtube.com/watch?v=kffacxfA7G4 Jutin Bieber youtube link

Author’s links:
http://twitter.com/KeithLHarrison
http://clubnewjack.blogspot.com/

Executive Leadership Activity 5

I switched from the campus program to the online program on May 1, 2010 due to traveling obligations for other endeavors so I had to resigned as Pre Law Club President. On May 15, 2010 I arranged an election for a replacement. Former Vice President Mitchell Bishop won the election and I informed him on all the duties that being President requires. I still to this day help the club whenever they need me. Throughout these activities I have gotten stronger in the skills (creating positive change, influence and prioities) I was weak in by helping others.

Entertainment Media Publishing and Distribution Month 9

The assignment for this month was to create a media company and describe how you would distribute it cost effectly.

Mission Statement
I chose to keep my mission statement short and straight to the point. I was taught this in an earlier class in the program. The mission statement is as follows: New Jack Productions mission is to provide high-quality music in the genre of R&B. R&B that has a nostalgic throwback feel to it. Our goal is to feed that burning need of live recorded instrumentation for our audience therefore providing an experience to remember for our clients.

Executive Summary
New Jack Productions (NJP) is a music production company that specializes in R&B. NJP will market to artist by attending the appropriate functions and gatherings that these artists attend. Competition includes surrounding production studios in the Atlanta, Georgia area that produce R&B. NJP Operations includes music production, graphic design and cd packaging. NJP plans to be the premier and go to studio for all R&B artists locally and also to attract major artist as well.

Company Description
New Jack Productions (NJP) is a music production company based in New York City, which specializes in the genre of modern R&B with a nostalgic feel to it. Atlanta offers different production companies from all musical genres. Competitors in the market do not offer R&B production that is solely produced by live musicians. Therefore, there is a burning need for this niche market to have a place for our clients to come and revisit the time before there were music programmers and beat makers.
New Jack Productions provides all musicians for production unless not needed by the client. NJP revenue streams include production, cd packages and graphic design.

Product
The product that New Jack Productions will create is R&B music for signed artist to the company and any artist of this genre that needs professional quality sounding material. The studio is a home-based studio so there is no major overhead cost and this will over more profit to the company. There is an in house graphic designer for clients that need a professional look to their photos. CD packaging will be the only service that is outsourced.

Manufacturing Strategy
Manufacturing strategy is pretty simple since all products will be produce in house. The client does have the options to bring in their own musicians and/or graphic designers. Everything that NJP creates for the client is subject to the client’s approval. NJP has a professional standard to uphold and does not want to tarnish the reputation of the company.

Distribution Strategy
New Jack Productions distribution will be handled by several sources for our clients. First, the client has the option to take their product and distribute it on their own. Next, the client can signed with our company if we both mutually agree to work together and NJP would handle distribution duties from there. Third, NJP will set up a deal through iTunes since this is where the majority of online music is purchase. One in every four songs sold in the United States is through iTunes (Whitney, 2009). In addition, NJP will out source print on demand through CD Baby. This is for the customer that wants a physical copy of the product. The good thing about partnering up with CD Baby is they have multiple partners with digital distribution as well. These digital distributions partners include the following: iTunes, amazon, eMusic and Rhapsody and several more (http://members.cdbaby.com). After securing much success as a company, then NJP would look for a larger distribution company after proving that the company can make sales. And NJP would not agree to an exclusive contract with the distributor unless it is a major deal and it is beneficial to the company. NJP sees fit to keep doors open to have multiple distributors for multiple revenue streams.

Marketing and Production Strategy
NJP’s marketing strategy includes several things. First, we have to determine who owns the rights to the material for publishing reasons of course. Since NJP offers production of the music, then NJP would own 50% of the product unless agreed upon otherwise or clients produces the music themselves. Next, NJP would decide which performing rights society to join. In addition, NJP will seek out performers mainly in the Atlanta, Georgia area by attending music festivals, conferences and showcases that focus on the genre of R&B or related sub-genres. In addition, NJP would look to primary and secondary competitors in the area and find out what strategies that are working well and not well for them and make adjustments from there. Production strategy is the same as previously mention in the manufacturing strategy.

Advance Entertainment Law Month 8

My business will be located in New York, NY so the need to interview a New York entertainment attorney was imperative. After researching potential candidates online to interview for the leadership portfolio, the choice ended up being with Mr. Corey Boddie. He had very little time to speak with me but I did speak with him over the telephone. I respected that his time was sensitive so I suggested that I email the questions and he obliged and also referred me to his website for his practice. Boddie is an entertainment attorney practicing in New York in the areas of music, film, fashion and television.

Corey Boddie received a Bachelor of Arts degree from the University of Virginia in 1994 and a Juris Doctorate degree from Southern University Law in Louisiana IN 1999. Shortly thereafter, Boddie started his own practice named Boddie & Associates, P.C. He is a member of The Entertainment Law Committee of the New York Bar Association and is a board member of this organization. In addition, he is also a member of The Entertainment Sports Law Forum of the American Bar Association and is an officer with this organization. Lastly, he is also a member of the Recording Academy for the Grammys (http://www.boddieassoc.com/corey_boddie.html).

One of the questions that I emailed Mr. Boddie was asking him about his favorite moment while practicing law. Boddie (personal communication, March 22, 2010) noted that it was when he was appointed the General Counsel for the Manhattan Short Film Festival in 2001. Another question in the email was general advice related to the start up of my business. Boddie (personal communication, March 22, 2010) noted that he could not give me legal advice but in general to make sure that I have all the proper licenses since I will be dealing with music. In addition, another question I asked was about becoming an entertainment attorney. My goal is to start law school in 2011. Boddie (personal communication, March 22, 2010) replied saying to make sure this is something you really want to do because it requires a lot of sacrifice but the rewards are great. He also noted that to join sports and entertainment organization at the school if applicable. In addition, I asked what are some of the major legal liability and challenges in entertainment law. Boddie (personal communication, March 22, 2010) said that infringement is definitely number one and warns clients of this before he starts to do business with a client that comes to him for legal advice.

These emails were very helpful but also referred me to his website for some of the things he has been involved with such as high profiled cases. One case that I found interesting was the Ginuwine versus King Music Group. I personally am a big fan of Ginuwine’s music and have purchased all of his music from 1996 through his latest effort in 2009. He is an artist that is on my business plan list that I would like to perform at my venue. Boddie represented Ginuwine with the claims of negligent misrepresentation, entertainment business fraud and breach of contract. The deal was for King Music Group to provide an advance of $500,000 with the deal totaling at $1.75 million. Ginuwine never receive payment. In addition, this held up Ginuwine from recording anywhere else at the time. Damages of $4 million was asked for to settle this case. The lawsuit stated that King Music Group did not exist so the contract is null. The lawsuit was later dropped by Ginuwine and he is now signed to Notifi/Asylum/Warner Records (http://www.usentertainmentlawyers.com). Other notable clients are Oscar nominated director Josh Raskin, Kool & The Gang, Bad Boy recording artist Black Rob and reggae artist Wayne Wonder.

Corey Boddie was very helpful and I sent him an email saying thank you for your time. He replied (personal communication, March 22, 2010) saying that he will be available to speak with me for an hour on March 26, 2010 at 10am. For the assignment purposes, the email and the short time we had on the phone had to suffice but I look forward to speaking with him on this day to go into more detail about my career goals and more of the things he has done in the entertainment industry.