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Mock Business Plan

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Mission Statement

As an up and coming branch of Sirius, we promise to bring XM quality to FM radio all day and all night. We will enable listeners to bust a move, whether they are at work, at home, or on the go.

 

About Our Station…

We designed a station that hopes to bring XM quality to FM radio. 98.9 WTRD is a branch of SiriusXM that will bring in many listeners while reeling in more subscribers to Sirius. Listeners will have the chance to win trial subscriptions to Sirius by tuning in to our station every day.

  • 98.9 WTRD-FM: The Real Deal Productions

    • Format – Top 40, Today’s and the 2000’s

    • Promotes Music Festivals, Concerts, Local Talent and SiriusXM

    • Provides Entertainment news, local news, national news, and weather and traffic reports every hour at the top of the hour during midday, morning, and afternoon drives.

  • Start Up Expenses

  • Rent: $32,569.05/year ($2,714.09/month)

  • Min. Cost in Chicago: $18/Sq.Ft. (our cost would be $63,000/year; difference of 30,430/year)

  • Engineering fees (finding a frequency, fill out applications and help set up equipment): $3,000

  • Equipment: $90,000

  • EAS Monitor (FCC required): $3,000

  • Transmitter and Omni directional Antenna: $11,000

  • Tower Rent: $2,000/month

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  • Electric: $1,500/month ($18,000/year)

  • Internet: $50/month (AT&T @ $600/year)

  • Phone: $57/month (Comcast Business Class @ $684/year)

  • Garbage & Sanitation: $75/month (Services: $900/year)

  • Building Insurance: $1,500/month

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  • Creation: $1,000

  • Web Maintainer: Job will be conducted by social media interns ($75/month)

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  • FCC Lawyer: $250/month ($3,000/year) ($250/hour)

  • ASCAP: $1,500/month

  • BMI: $1,500/month

  • SESAC: $1,500/month

  • Sounds Exchange: $1,500/month

  • Office Supplies: $200/month

  • Printing: $600/month

  • Postage: $150/month

  • Equipment: $200/month

  • Syndicated Costs:

  • NPR Streaming: $670/month($8,000/year)(4 segments running 50-75% of clock hour)(run from 8pm-11pm weekdays)

  • Top 40 & Pop Classic Music: $2,000/month ($24,000/year)

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  • Gen. Manager - $54,000/year

  • Account Executive - $46,000/year

  • Chief Engineer: - $45,000/year

  • Program Director: - $48,201/year

  • General Sales Manager: - $46,000/year

  • AM Director: - $40,000/year

  • Traffic Director: - $37,000/year

  • Promotion Director: - $32,720/year

  • Maintenance Engineer: - $20,000/year

  • Music Director: - $23,000/year

  • News Director: - $39,000/year

  • News Reporter: - $33,500/year

  • Sports Director: - $38,000/year

  • Sales Assistant: - $30,000/year

  • Production Director: - $35,462/year

  • Copy Writer: - $30,000/year

  • Receptionist: - $30,000/year

  • Announcer/DJ: - $24,550/year

  • Social Media Assistant: - $22,000/year

  • Interns (2-4): - Non-paid internship

  • Custodian: - $5,000/year

  • Volunteers: - Non-paid

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  • Business Attorney Jeremy A. Gibson ($3,500/year)

  • Accountant serving Chicago, IL

  • Joseph I. David CPA ($4,000/year)

  • Communications & media lawyer serving Chicago, IL

  • Richard E. Steck & Associates ($5,500)

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  • Contract Engineer ($40,000/year)

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  • Promotional Items (Van, Paint job, prizes etc.) - ($4,000/year)

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  • Advertising (Billboards, t-shirts, signs, etc.) - ($10,000/year)

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  • Yearly cost of operation = $1,133,886.05

  • Cost Per month = $94,490.50

  • + Unexpected Costs ( - $100,000)

  • We are budgeting for our first year a cost of = $1,234,000

 

 

Anticipated Revenue:

 

Commercials:

         Overnight Advertisements: $1,200/week ($52,000/year)

         Weekdays Advertisements: $9,711.54/week ($505,000/year)

         Weekend Advertisements: $2,923.08/week ($152,000/year)

 

Sponsors:

         Web Streaming Sponsor: Sirius XM ($200,000/year)

         Advertising Sponsor: Hard Rock Hotel ($170,000/year)

         AM Station Sponsor: Allstate Insurance Company - Josh Eyeman ($180,000/year)

         Web Sponsor: Ann & Robert H. Lurie Children's Hospital of Chicago ($100,000/year)

 

         Potential Income: $2,250,170

         Revenue per month: $187,514.16

         Unexpected loss of revenue: (- $100,000)

         expecting an annual gross revenue of = $2,350,170

 

         Expected first year profit = 1,116,170 (10% profit growth)

 

We are asking for a 5 month investment of $94,490.50 plus another $5,000 for unexpected costs.

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