Question

Review and narrow your list of business ideas to the one you will use for your pitch in Week 8. Utilizing the discussion on sales forecasting in chapter 10, prepare a 6-month from opening sales forecast for your business. Now extend that to 1 year, 5 years, and 10 years. What variables will affect your sales? To what degree? How can you attempt to offset or capitalize on these factors?

My business idea is:

-Online Record Label:

Different from traditional record labels, this one will be 100% online permitting artists to work all around the globe and providing them with customized online support via instant messages and video calls. This label will first help artists build a social media presence so that they can maximize their reach among targeted audiences, tap into new potential markets, and explore undiscovered opportunities. Second, all of the infrastructures contained within a traditional record label will be implemented by a management team in combination with special algorithms designed specifically for success in the music industry. Third, through partnerships with the largest existing record labels, this business will use all of their resources and distribution to access every consumer available.

Answer 1

in Sales Forecast Year 2 4 9 10 Revenue: Membership Fees 100000.00 110000.00 121000.00 133100.00 146410.00 161051.00 177156.10 194871.71 214358.88 235794.77 Outsourcing Revenue| 40000.0046000.00 52900.00 60835.00 69960.25 80454.29 92522.43 106400.80 122360.91 140715.05 Other Income 5670.00 5783.405899.07 6017.056137.39 6260.14 6385.34 6513.05 6643.316776.17 Total Revenue 145670.00 161783.40 179799.07| 199952.05222507.64 247765.43 276063.87| 307785.55| 343363.10 383286.00 Business can plan to offer membership program to their clients by attaching them on periodical basis payment. It can offer general services to every client but the membership program client should be given some extra benefit in addition to general like 24*7 support, direct access to head etc. Variable such as upgradation by existing players to digital platform can increase the competition for the business which can affect the sales estimate, introducing the government regulation since the business service involves the public so government can regulate it to protect the interest of public. the above factors can affect the sales to great extent say for 20 to 30% YoY basis. So these unexpected threat should be provisioned For the competition factor, the business should introduce several customer centric services in its platform so that customer get attached to use the services and then by scaling the customer base, the price per customer should reduce so that bonding with customer can be increased. anf For government regulation, The business should develop strong compliance department so that the business can be run without non complying with any provision of regulation.