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Business Proposal

REUBEN SHAUN RAMAN

MANDRIC TAN MINGWEN
NG TIAN HWEE

SoundFarm Production Studios

Singapore
+65 9040 6058 (Reuben Raman)
+65 9116 0836 (Mandric Tan)
+65 9230 1681 (Tian Hwee)
reubenraman@gmail.com
mandrictan@gmail.com
tianhwee_ng@hotmail.com
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I. Table of Contents

I. Table of Contents......................................................................................................................................... 2

II. Executive Summary ..................................................................................................................................... 3

III. About The Owners ...................................................................................................................................... 5

IV. General Company Description .................................................................................................................. 7

V. Products and Services .................................................................................................................................. 8

VI. Startup & Marketing Plan ......................................................................................................................... 10

VII. Studio Operations ...................................................................................................................................... 12

VIII. Management and Organization ................................................................................................................ 13

IX. Financial Package ....................................................................................................................................... 15

X. Appendix ..................................................................................................................................................... 18
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II. Executive Summary

In the recent years, Singapore has seen a growing interest in home grown music birthed from
local artistes and talents. From endless lines of participants at music related TV competition shows like
Singapore Idol, Super Band, S-POP…etc to raving crowds at local music concerts as well as continual
support from the MDA, it can be said that there are many music hopefuls among us. Frequent features of
successful Singapore music ventures and talents becoming highly popular overseas indicates that there is
hope for Singapore musicians in the near future.

Anyone who aspires to be a talent or star in the music industry will almost definitely want a
decent recording of their work, whether it is their composition, performance, arrangement or simply a
demonstrational recording of their talent which they can use to jump-start their musical career. This is a
business proposal for a company that caters to the recording demands of these music hopefuls, giving
them a head start into their musical journey.

SoundFarm Production Studios is birthed out of a passion and love for music and its
technology. We believe that we have the sufficient expertise and knowledge to start up a music
production business and this opportunity will allow us to grow more in terms of skill as we are now out
working in the real world. We are able to use the skill sets learnt in school and use and apply them in the
working world. The main aim and goal of the company is to provide music production services with the
use of high level professional equipment at highly affordable rates . In essence, SoundFarm Production
Studios will provide services such as different forms of audio recording, audio editing, music arrangement
and production. We will also offer a comprehensive music library for clients to hear through and use for
purposes such as advertising. SoundFarm Production Studios will have a start up time of approximately 3
months where rigorous testing of the computer system will be carried out. This is to ensure that the
system we are using is stable and operating at its optimum. In terms of marketing, we aim to cater our
services to a number of markets such as religious organizations, local indie bands, music schools lacking
recording facilities and advertising companies. Furthermore, a company website will be set up. This
website will allow listening of audio clips produced for past clients, together with information about our
studio and its services.

SoundFarm Production Studios will run as a part time business. The unique factor about this
business is that it is portable. The equipment that we possess is not built into the business location.
Hence, we can easily transport this equipment to a new business location when required. Rental of studio
space is based on a mutual agreement between the business owners & Geoffrey Low (Studio Landlord).
Reuben, Mandric & Tian Hwee have specific roles and responsibilities in the running of the studio.
Upon nomination between all the partners and shareholders, Reuben, has been chosen to be the
Managing Director of the company where he has the final say in decisions made. He is also tasked to be
in charge of all audio production & studio management aspects of the company. Mandric is tasked to be
in charge of all music production & marketing/public relations aspects of the company. Tian Hwee is
tasked to be in charge of marketing and music production as well. She will be looking into targeting the
Chinese music industry in Singapore. During the time when Reuben & Mandric are serving National
Service, business partner, Tian Hwee, would ensure the sustainability and continuity of the business.
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All partners of the business will invest a sum of $15,000 into the company. This will give a
total starting capital of $75,000.

In conclusion, SoundFarm Production Studios plans to be the avenue and the stepping stone
to propel young aspiring local artistes and bands into the music industry. We aim also to establish a
reputable name and standing in the music industry in Singapore.
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III. About The Owners

MANDRIC TAN MINGWEN

Mandric Tan is a final year student in Singapore Polytechnic pursuing a diploma in Music & Audio
Technology. Recently being honored with the SDMIT Director’s Roll (2007/2008), Mandric is currently
an employed staff of 2 music related organizations in Singapore.

Play By Ear Music School – Piano Instructor

Pavane Recording Studio – Assistant Recording Engineer

Being an active member in his local band MadHatter, Mandric has experience in performance as well as 2
nation-wide band competitions - Yamaha Asian Beat 2007 and Power 98’s PowerJam 2008 winning both
the 3rd and 4th place respectively. Mandric has also produced and arranged a Malay Songwriting
Competition’s ( Alunan Kasih 2008 ) grand prize winner “Pelita Dunia”, written by his fellow classmate
Riza Hamizan.

Besides his experience in contemporary music, Mandric was also an active committee member (Logistics
Officer) of an independent choir, The Vocal Consort Singapore, led by renowned Singapore conductor
Nelson Kwei. With The Vocal Consort Singapore, Mandric has performed and competed in several major
concerts, the more renowned of which are The Arts Festival 2006 (Zheng He and The Seven Seas) and
The Hua Yi Festival 2007 (Meng Jiang Nu). He has also helped the choir win the Gold Medal at the
Festival of Songs Olomouc 2006 (Czech Republic) for 2 categories (Superior Open Mixed & Folklore),
bestowing them the title of “Superior Societas” for scoring full marks in the Superior Open Mixed
Category. The Vocal Consort Singapore was eventually 4th in the Competition’s Grand Finals.

Mandric’s experience in both classical and contemporary music has greatly helped him perform efficiently
his various tasks in school as well as at work. His experience will be a great asset to SoundFarm
Production Studios, complementing Reuben Raman’s audio engineering expertise.

REUBEN SHAUN RAMAN

Reuben Raman is a second year student in Singapore Polytechnic undertaking a diploma in Music &
Audio Technology. Together with Mandric, Reuben has recently been honored with the SDMIT
Director’s Roll award (2007/2008).

Reuben has been deeply fascinated and in love with audio and its technology from a very tender age. His
passion has driven him to become an active subscriber of several renowned audio magazines and also to
participate in several Sound and Audio Exhibitions such as Sound on Sound Magazine and PALME Asia.

Reuben established a mini home studio for himself at the age of 16, with industry software such as
Digidesign’s Pro Tools and Apple’s Logic and has progressed to hone his sound engineering skills by
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undertaking mini projects for various companies and organizations such as church album recordings,
sound effects for game developers as well as being involved in a musical production at the Victoria
Theater. In addition to gaining experience through these home-projects, Reuben has also gained live
experience by mixing and recording for live productions. It is with the setting up of this recording studio
that Reuben hopes to up the ante and gain even wider exposure in the world of music and audio
technology.

Alongside his passion for audio and sound, Reuben also has a keen interest in music. With his primary
instrument as the keyboard, he is currently hoping to expand his repertoire of skills by undertaking jazz
keyboard lessons at a local music school, He already has years of performance experience as a church
musician playing the bass and acoustic guitar occasionally to widen his musical prowess.

NG TIAN HWEE

Ng Tian Hwee is a graduate of Singapore Polytechnic with a Diploma in Music and Audio Technology.
She is currently working as a freelance sound engineer and piano teacher.

Tian Hwee was a production assistant and sound engineer with production house, Tiny Box Studio, for
1.5 years where she had the opportunity to showcase her work and add her personal distinctive flavour
into many album productions such as,

1. Singapore Project Superstar 2 winner, Darren Tan’s debut album

2. Malaysia Project Superstar female winner, Desiree Tan’s album

3. Hong Kong singer, Denise Ng’s, Canto/Mandarin album

as well as some Christian album productions.

Besides production, Tian Hwee manages the music academy and publishing arms of Tiny Box Studio. She
had been tasked in marketing the academy as well as doing administrative work in music publishing
matters.

Apart from her involvement in the Chinese pop music scene, Tian Hwee is also passionate about classical
music where she is currently pursuing the ATCL in piano as well as a degree in piano performance. Tian
Hwee has also picked up the violin as her second instrument, complementing her skills in the piano. Her
passion for music and hands on experience in sound production , especially in the unique Chinese music
industry, will certainly add value to the range of services the company can provide.

Together with the combined expertise and talent of Reuben, Mandric & Tian Hwee, it is no exception
that they will make an excellent team, with all the complementary skills necessary to provide excellent
recording and music production services.
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IV. General Company Description

Company Description: SoundFarm Production Studios is a company that provides professional

recording & music production services. These services comprise of digital audio recording, music
arrangements & compositions, audio manipulation & basic mastering.

Mission Statement: Harvesting Your Sound.

Company Goals:

1. To provide music/audio production services at an economical rate.

2. To establish a reputable standing in the local music industry.

Business Philosophy:

SoundFarm Studios provides clients with the realization of their musical ideas.

We believe in open communication at all professional levels of our music production process so as to
ensure consistency of our products and services.

Company Objectives:

- Short term objective

1. Set-up an operating recording studio.
- Long term objectives
1. Create a reputable standing in the Singapore Music Industry
2. Expand the business and move out to a bigger location in an estimated 5 years.

Legal Form of Ownership: Private Limited Company

Percentage of Ownership : 36% - Reuben Shaun Raman

36% - Mandric Tan MingWen

18% - Geoffrey Low

10% - Ng Tian Hwee

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V. Products and Services

The heart of SoundFarm Studios is Digidesign top of the range digital audio workstation, Digidesign Pro
Tools|HD® 3 Accel. The most powerful of the base Core systems, Pro Tools|HD® 3 Accel ample
power- on-demand capabilities from its three dedicated DSP cards, delivering rock-solid performance,
low latency, guaranteed track counts, and extended plug-in processing power fully capable of handling
extremely large and complex sessions and has available options for future expansions. Pro Tools|HD is
the industry standard audio related software and has proven to be the most reliable digital audio
workstation in the market.

With the use of high quality recording & music production equipment, we aim to cater our services to
customers at highly affordable rates, providing great value for the services rendered.

Our market covers a wide clientele ranging from religious groups to potential clients producing their
personal demos, media related companies requiring audio for visuals and many more.

List Prices for Services

Service/Product List Price

Recording/Studio Rate $100/hr

Editing Services $70/hr

Voice Over Recording $80/hr

Mixing (12 Hours) $1000/song

Music Production Package $1800/song

(Arrangement,Recording,Mixing)

Content Development $800/project

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Cost to Cost Pricing for Our Services

The prices listed below are based on the following assumptions that are our expenses are kept to a
minimum low of :

1. $900 a month for Salaries

2. $250 a month for Studio Rental (Fixed)

3. $107 a month for Office Rental (Innovillage @ SP)

4. $534 a month for Depreciation.

5. $417 a month for Maintenance

The other assumption made is that, as we are still students, we only can work for 4 hours a day and 14
days a month.

Cost to Cost Pricing

Service/Product List Price

Recording/Studio Rate $40/hr

Editing Services $40/hr

Voice Over Recording $40/hr

Mixing (12 Hours) $480/song

Music Production Package $700/song

(Arrangement,Recording,Mixing)

Content Development $250/project

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VI. Startup & Marketing Plan

Start Up

From January 2009, SoundFarm Production Studios will go into an immediate test-run and startup period
of 3 months from the start of operation. This is to ensure that all equipment is in working condition and
performance and results are optimized.

We will then compile a list of several well-known individuals/groups in our target industry (indie bands,
demo singers, church musicians, etc.). Budget recording services will be offered to our target industry for
trial outs.

During the course of these 3 months, SoundFarm Production Studios will be developing a database of
several contrasting demonstrational recordings of our services to showcase to our potential customers.

Marketing

Set up a website that contains valuable information regarding the company’s products, services and
equipment.

Seek out potential music schools lacking in recording facilities.

Propose a tie up with the school providing discounted bundle/package for recording services.

Seek out potential religious organizations lacking recording facilities. Propose a tie up with the
organizations providing discounted bundle/package for recording services.

Approach organizers of talent competitions to seek out potential collaboration for music production
services.

Place several information posters regarding SoundFarm Production Studios at jamming studios to
increase awareness among target bands looking to get their demo/songs recorded.
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Table 1: Competitive Analysis

There are only two comparable music production studios that offer some level of competition against us.
These two companies are Snakeweed Productions & Sound Advice Studios.

SoundFarm Production Snakeweed

FACTOR Sound Advice Studios
Studios Productions

ProTools|HD 3
Yes No No
System

Studio Rate
$80/hr $70/hr $70/hr
(Average)

Music Production Yes No Yes

Location Jalan Kayu Outram Geylang

Accessibility LRT MRT Bus

7-Eleven, various 24hr food

Amenities outlets within 500m of studio Provision Shop 7-Eleven
location.

DAW(s)
Pro Tools, Logic Pro, Cubase Pro Tools Nuendo
Supported

Musical Diversity Chinese/English/Indie/Religious English/Indie English/Indie/Chinese

Mastering Services Yes No No

From the competitive analysis above, we believe that SoundFarm Production Studios provides a more
competitive edge than the other two companies. We offer many more services and higher-level
equipment at affordable and reasonable prices.
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VII. Studio Operations

Studio Rental

The unique factor of our studio is that it is a portable music production studio allowing us to move our
studio equipment to a new business location, when required. The rental of our studio is based on a
mutual agreement between, the studio owners together with Geoffrey Low. Geoffrey is providing a
proper, well acoustically treated studio space. . There is a base rental fee of $250 a month. On top of the
base fee, rental is paid relative to the total income brought in by the use of the studio per month. The
studio owners have agreed to pay a percentage of 50% to Geoffrey for rent. For example, in the month
of April, if we clock in a total of 48 hours of studio time, rental for that month would amount to 24 hours
of studio time priced at 50% of the studio rate.

Day-to-Day Operations

Day to day operations will be handled by the different partners of the company. Since, Reuben &
Mandric are still schooling, Tian Hwee will take over operations during times when Reuben & Mandric
are not available. Other than that, all three partners would be actively involved in sustaining the business
on a daily basis.

Sustainability

We can guarantee the continuation and sustainability of business during Mandric Tan & Reuben Raman’s
absence during the course of their National Service. This issue has been taken into consideration since the
start of the planning process and therefore, Ng Tian Hwee’s inclusion, as a business partner will ensure
that the business will be sustainable. With her experience, she will be able to support the business both
music and audio aspects of the business.
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VIII. Management and Organization

1. Reuben Shaun Raman

• Managing Director

Upon a unanimous vote by all the shareholders and partners of the company, all have decided to
have Reuben have the final say in decisions made in the company. He’ll take on the role of a
managing director of the company. Official documentation of this would be verified by lawyers
during the registration of the company.

• Studio Manager.

The studio manager’s prime responsibility is to schedule recording /studio sessions for internal
and external use. Scheduling consists of client booking and making sure that the studio is
prepared on time. The studio manager is also in charge of finances. He is to keep check of the
financial status of the business and to monitor its financial state. He is to keep track of day-to-
day and monthly expenses as well as the collection of income from clients.

• Recording Engineer.

The recording engineer’s prime role and responsibility is to handle all aspects of audio recording
sessions in the studio. He is in charge of the handling of microphones, preamplifiers and other
outboard equipment in achieving the right kind of recording that suits the clients’ expectations.

• Mixing Engineer.

The mixing engineer’s prime role and responsibility is to mix recorded tracks of a song to the
client’s expectation and liking. He takes the best musical tracks the recording engineer has
produced and mixes those together into one blended sound.

2. Mandric Tan MingWen

• Marketing Director

The role of a Marketing officer is to reach out to people in our target industry who are potential
clients. He is to promote and sell SoundFarm Production Studios to them and develop a good
working & non-working relationship with all associated with us. Mandric will be looking into
marketing English based customers. Clients who are interested in English music production.
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• Music Production

A Music Producer's main task is to make sure the artist's vision is being captured. This includes
music arrangement, controlling the recording sessions, coaching and guiding the performers, and
supervising the recording, mixing and mastering processes. Mandric’s music production role will
focus towards the English music scene in Singapore.

• Content Development

Content Development includes the creation of materials that will be compiled to a library, readily
available for both client and in-charge to access and pick from. This includes the creation of
jingles of various lengths, music for background, song composition and etc.

3. Ng Tian Hwee

• Music Production

A Music Producer's main task is to make sure the artist's vision is being captured. This includes
music arrangement, controlling the recording sessions, coaching and guiding the performers, and
supervising the recording, mixing and mastering processes. Tian Hwee’s music production role
will focus towards Chinese music industry in Singapore.

• Content Development

Content Development includes the creation of materials that will be compiled to a library, readily
available for both client and in-charge to access and pick from. This includes the creation of
jingles of various lengths, music for background, song composition and etc.
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IX. Financial Package

All partners of SoundFarm Production Studios plan to invest a total sum of $12,500 into the company.
Hence, the total capital sum will amount to $62,500.

Invested Sum Grant from Singapore SPRING Singapore Total Available

Polytechnic Grant Capital

$15,000 $15,000 $45,000 $75,000

The following page shows the full financial package and startup expenditure of SoundFarm Production
Studios during our run in time from January 2009 – March 2009. It also shows the monthly operational
expenses of the business.
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Financial Package / Setting Up Expenses

Equipment Price Total

1. Mac Pro $5992

MacBook Pro + Pro Tools $3000

LE

$8992

2. Digidesign HD System

2.1 Pro Tools HD III $17,360

2.2 Digidesign 192 i/o $4960

2.3 Digidesign C|24 Control $10,175

Surface

$34,770

Core System Total $43,762

1. Monitoring System

1.1 Genelec 8040A $2800

1.2 Rolls 6CH Headphone Amp $330

2. Drum Mic Kit

2.1 Audix DP-5a Drum Mic Kit $1500

Monitoring/Drum Mic $4849

Kit Total

1. Preamplifiers

1.1 SSL X-Logic Alpha Channel $1650

1.2 Vintech X73i $2300

$4227
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2. Microphones

2.1 Shure SM57 (2) $230

2.2 AKG 414 Standard (2) $2800

$3242

3. Miscellaneous

3.1 Cables & Accessories $3000

3.2 Office Furnishing $5000 $8000

Preamplifies,Microphones $15,469
& Misc. Total

Total Eq. Expenditure

$64,080.00

Remaining Capital $10,920

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X. Appendix

1. Income Statement Projection

Attached is a 2 year Income Statement projection of SoundFarm Production Studios. Variables in the
Income Statement projection is explained below.

• Income

There are 3 main sources of income for SoundFarm Production Studios.

1. Recording (Studio Time)

Recording income equals to the amount of studio time that has been paid for
per month. We plan to increase our studio working time every three months.

1. January 2009 – March 2009: 20 Hours/month

2. April 2009 – June 2009: 24 Hours/month

3. July 2009 – September 2009: 36 Hours/month

4. October 2009 – December 2009: 48 Hours/month

5. January 2010 – December 2010: 60 hours/month

2. Productions

Production income equals to the total income gathered by production packages

that we offer. These packages offer music production and arrangement services.
We aim to sell one production package at an average price of $1500 every
month.

3. Content Development

Content development income is the total income generated by selling our music
library to advertising companies. We aim to sell at least one jingle every other
month at an average price of $800.
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• Expenses

There are 6 different forms of expenses that need to be paid every month.

1. Studio Cost

Rent is paid relative to the amount of studio time usage. There is a minimum
amount of $250/mth. On top of that, 50% of the total income collected from
studio usage will be paid as rent.

2. Salary

The figures stated in the salary row reflects the total salary payout to both the
business owners of the company.

There will be an increase in salary every quarter of the year. However for the
first year, the combined salary will be fixed at $900. For the 1st quarter of 2010,
the combined salary will be increased to $1200. The 2nd and 3rd quarter of 2010,
the combined salary will be increased to $1500.

3. Comission

On top of the basic salary, there will be a 10% commission given to the partner
undertaking the particular project. For example, if Reuben handles a mixing job
of 10 Studio Hours at $100/hr, He will earn an additional 10% of that total
studio time income on top of his basic salary.

4. Office Rent

We plan to use the office rent provided by SP – Innovillage@SP. Rental cost

per month is $107/month.

5. Depreciation

According to the depreciation schedule, an annual sum of $6408 will be

depreciated from all our equipment assets.
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