The company CEO is Michael Horne. Michael has eight years of experience as the owner and manager of Palookaville, a live entertainment venue in the Santa Cruz area. The management team is headed by owner Wes Anthony. As a professional musician and teacher, Wes is uniquely qualified to develop an entertainment and education venue. Wes holds a Masters degree in Music from CSU San Diego and has extensive restaurant experience as a cook, waiter, and bartender.
Administration and Operations
Each revenue stream is managed by a Division Chief. Each of these staff positions is detailed in the Personnel plan. The Division Chiefs are responsible for the day-to-day operations of the venue. The Division Chiefs will report directly to Wes Anthony, who will assume all administrative and management responsibilities.
The company’s bookkeeping, payroll, and tax reporting will be outsourced. This cost is represented in the Profit & Loss under the General And Administrative line item. The company’s accountant is Bob Mason, CPA. Bob is owner of Coast Financial Services of Santa Cruz, CA. Coast Financial will additionally provide payroll services support.
Additional marketing and employee training will be provided Jon Taffer. Jon specializes in providing hospitality business development for owner/operators through his award-winning business evaluation and rejuvenation services. Jon can provide a full market study and competitive assessment for the venue.
6.1 Personnel Plan
Total personnel costs for the first year is $124,000. Personnel costs increase in the second year of operations, based on a full 12-month of operations, to $170,000. Third year personnel costs are estimated at $192,000. Personnel costs represent the least amount of staffing required to operate the facility. Additional staff will be hired as net profits allow. Personnel interviewing and hiring will begin in August, as detailed in the Milestones table of this section.
Managers paid at $10.00 per hour and assistants paid at $6.50 per hour. Employees will be paid an additional bonus as net profits allow. The wait staff and bartending staff will additionally receive tips where appropriate.
The company will have two division chief managers and four part-time employees initially. All employees will be cross-trained to assist each division as needed. The first two weeks in September are designated as initial training weeks.
Venue Rental, Food and Beverage, and Arcade Manager: August Polacco
August Polacco is a professional musician with over 40 years experience. He has a sales and marketing career of over 20 years supplementing his musical endeavors, and the direct experience of managing a band’s retail merchandise. In addition, a personal quest for a deeper understanding of human nature led to his participation in Landmark Education’s programs, which provided a model of effective communication and leadership skills and a lifetime of new possibilities. August is uniquely qualified to meet the anticipated demands of the E3 Playhouse.
Entertainment and Education Manager: Michael P. Lazarus
Michael is a professional musician, educator, and owner of Latin Pulse Music, Inc., an online-based musical services company. With degrees in both music and electrical engineering, he continues to provide financial and technical advice to support the launch and ongoing management of the E3 concept. LPM, Inc. will be used as the outsourced solution to meet the scheduling and booking needs of E3’s live entertainment division. While always leveraging against his experience as a touring and recording artist, his activities as an event producer have provided a complete perspective, especially when it comes to contract negotiations with entertainers. Michael currently teaches a comprehensive electric bass method at Sylvan Music in Santa Cruz and at a private studio in San Francisco.
Assistants will provide staffing for all divisions, including Entertainment, Education, Food and Beverage, Venue Rentals, and Retail and Arcade. Assistants will also provide general staff needs for events, such as: Clean-up Person; Bouncers; Dishwashers; Ticker Takers; Security; Bartenders, and Audio Video.
- Dan Robbins
- Scott Nordgren
- Mark Sveen
- Clayton Ramsay
Additional assistance will be provided on a temporary basis, as needed, by the following individuals (booked under “Other” in the personnel table).
- Paul Logan
- Rion Strane
- Dave Byron
- Steve Robertson
- Doug Rowan
- Matt Cole
- Jimmy Ray Montoya
- Ferdouse Khaleque
- Steve Gray
- Israel Keller
Music and Education Faculty
Instructors and faculty for E3’s music and education course offerings will be compensated on a percentage basis of the revenue for each course. The average margin for these staffing costs are accounted for as a cost of sales in the Sales forecast of this business plan. Each instructor will be paid as an independent contractor.
The faculty will include the following instructors.
Drums: Steve Robertson; Martin Binder; Steve Vahle; Michael Horne
Percussion: Jose Reyes; Steve Vahle; Gary Keough
Bass: Michael Lazarus; Dan Robbins; Paul Logan
Piano: Rob Malkin; Bryan Yoshida; Eddie Mendenhall; Murray Lowe
Dancing: Ferdouce Khaleque; Aaron and Alexandra; Mario
Sax, Clarinet, Flute: Wes Anthony; Scott Nordgren
Voice: Luanna; Wally Trinidad
Brass: Robin Anderson; Tim Welch; Jeff Lewis
Strings: Nikki Welch; Dan Robbins
Guitar: Dave Byron; Marc Sveen; Clayton Ramsay
Spanish: Clayton Ramsay; Kire
Yoga: Kelly Blaser
|Year 1||Year 2||Year 3|
|Full-time staff (4)||$49,500||$54,000||$54,000|
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Advisory Board Development||3/1/2004||3/30/2004||$0||ABC||Department|
|Accounting and Legal Retained||4/1/2004||4/1/2004||$0||ABC||Department|
|Incorporation and DBA Application||4/15/2004||5/1/2004||$0||ABC||Department|
|DNS Number Obtained||4/16/2004||4/16/2004||$0||ABC||Department|
|Employer ID Number Obtained||5/1/2004||5/30/2004||$0||ABC||Department|
|Establish Payroll Payment Account with PayChex||5/6/2004||5/15/2004||$0||ABC||Department|
|Investor Development Meetings||5/15/2004||10/31/2004||$0||ABC||Department|
|Marketing Campaign Begins||6/1/2004||12/31/2004||$0||ABC||Department|
|Initial Entertainment Bookings||6/1/2004||9/15/2004||$0||ABC||Department|
|Initial Course Offerings and Instructers Developed||6/1/2004||9/15/2004||$0||ABC||Department|
|Lease Improvements / Building Build-Out||6/1/2004||9/15/2004||$0||ABC||Department|
|Building Construction Permits||6/1/2004||6/1/2004||$0||ABC||Department|
|City of Santa Cruz Business License & Fict. Name||6/1/2004||6/1/2004||$0||ABC||Department|
|City of Santa Cruz Use Permit||6/1/2004||6/30/2004||$0||ABC||Department|
|State of CA Liquor License Application or Transfer||6/1/2004||8/31/2004||$0||ABC||Department|
|City of Santa Cruz Fire Inspection||6/15/2004||6/30/2004||$0||ABC||Department|
|City of Santa Cruz Industrial Wastewater Permit||6/15/2004||6/30/2004||$0||ABC||Department|
|County of Santa Cruz Business Property Statement||7/1/2004||7/1/2004||$0||ABC||Department|
|County of Santa Cruz Health Permit||7/1/2004||7/1/2004||$0||ABC||Department|
|Stae of CA Employer Registration||7/15/2004||7/15/2004||$0||ABC||Department|
|State of CA Sales & Use Permit||7/20/2004||7/20/2004||$0||ABC||Department|
|Employee Recruitment Begins||8/1/2004||9/15/2004||$0||ABC||Department|
|Equipment and Furnishings||8/1/2004||9/15/2004||$0||ABC||Department|
|Kitchen Management & Inventory Developed||8/5/2004||9/15/2004||$0||ABC||Department|
|Retail Merchandise Inventory Ordered||8/15/2004||9/15/2004||$0||ABC||Department|
|Venue Rental Development||8/20/2004||9/15/2004||$0||ABC||Department|
|Membership Program Developed||8/20/2004||8/20/2004||$0||ABC||Department|
|Employee Training / John Taffer||9/1/2004||9/15/2004||$0||ABC||Department|