Guitar NZ

Director: Sam Wheeler

Flat 1/54 a Rimutaka Place,

Titrangi, Auckland,
New Zealand.

Telephone: (09) 817 3993

Cell-phone: (021) 252 3363

Email: visualnz@gmail.com

Date: 1/9/2006

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 MISSION STATEMENT
To build unique and creative New Zealand guitars and offer excellent, friendly
service and quality workmanship.

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 CONTENTS:

1. Background (page 4)

2. Executive Summary (page 4)

3. Business Details (page 4)

4. Marketing (page 4)

5. Financials (page9)

6. Outcomes (page10)

7. The Future/Goals (page11)

8. Personal Details (page11)

9. Conclusions (page14)

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1. BACKGROUND
After working and consulting with Andy Rust (Custom Rust Bass) and Neil
Slater (Private Luthier).

2. EXECUTIVE SUMMARY
2.1 Type the KEY points contained in your business plan on this page –
Product: Guitar design and customisation
Market segment: Creative Department heads, Producers, Investors and
Funding bodies, Schools, Parents, Publishers, Corporations, Internet Site
producers, Advertisers and the general public.
Location: Home Based workshop (I have a room set aside)
Expected sales: $58,000
Cost of making those sales: $18
Expected profits on sales: $40,000
Borrowing requirements: $6000 needs to be borrowed for capital purchases of
an essential parts and testing equipment.

BUSINESS DETAILS

2.2 Name of the business: Guitar NZ

2.3 Legal status : Sole Trader

2.4 Proprietor/manager : Sam Wheeler

2.5 Business process/type : Guitar modification, design and upgrades.

2.6 Hours of business : 9-5 Weekdays

3. MARKETING

3.1 Product and Service

4.1.1 Range – Guitars, Guitar parts, Guitar and bass customization.

4.1.2 Guarantees and Warranties – Clients will have the satisfaction of

knowing that there are stringent contingency clauses protecting their
production in the event that for any reasons we cannot complete their
production. Also any merchandise that is faulty or not up to the standard
that they have previously outlined will be amended. However extra
changes or additional alterations not defined by the original brief will be
charged for as extra work.

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 4.1.3 Credit terms – Cash and Cheque, Generally with 50% paid up front and
the final 50% to be paid on completion, unless extra resources are
required to complete the production. Of which advances up to the final
total may be required to allow completion. Otherwise Payment or sub-
contractual agreements to be negotiated.

4.1.4 USP (Unique Selling Proposition) – Our Products and services will be
unique due to Quality of the Product, Indigenous New Zealand
Versatility, Product Range, Larger International Market appeal, Local
support networks, and Experience.

4.1.5 Alternatives – Larger more established corporations such as the Rock

Shop and Go West music could complete the projects as contingency.

4.2 Customer Profile –Guitar builders, musician cliental both in the local and
international market.

4.3 Location of customers – Generally we will communicate with our clients via
Internet but also will embark on advertising on the radio using previous
contacts and contra offers. i.e. we have friends at both BFM and Radio
Active in the capacity of Advertising managers and DJ’s willing to plug for
their own advertising creation in the form of Flash animations and our very
original Artwork.

4.4 Market Research – I have sold custom guitars and basses in the past, and
have had offers on my guitars, even the partially rebuilt ones. Additionally I
have discussed the possibility of working with an interior designer in selling
complete custom Guitar and Bass packages to outfit a living area.

4.5 Size of the market –

4.6 Market Projections –Realistically the percentage we can reach is 20%
according to Pareto’s 80/20 law i.e. 80% of your work will come from 20%
of my clients. By promotion, production, distributation, time to develop
market share.

4.7 Segmentation – The basis of our customer targeting is that our products
appeal to a niche market of mid teens to late sixties consumers.

4.8 Price
4.8.2 Costing and Pricing considerations – On I will be required to follow that
system unless I negotiate for a Lump sum up front. I will charge per
hour and by parts included. Approximatley $3000-5000NZD per guitar
or bass.

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 4.9 Competition
Competitors –is that New Zealand has nearly all Geographical features in relatively
small proximation to each other.
Lancaster Guitars(Luthier)
Custom Rust (Luthier)
Bob Scott (Luthier)
The Rock Shop Music Works

Guitar NZ has an advantage over it’s peers in that it’s main graphics artist and Art
Director is also the multi-media Director/ Operator and has broad understanding of
what technology is able to achieve. Thus it’s versatile range and smaller overheads
will allow the company to adapt to the evolving graphic environment, learning new
techniques and breaking new ground in the fields that it incorporates. Where a more
specialized company may find itself quickly become obsolete.

4.9.2 SWOT Analysis –

Strengths: I am a small company will low overheads, that can quickly change to
me market demands.
Weak ness’s: Smaller company, Limited advertising budget. No current
established client base
Objectives: *See Future Goals
Threats: *See Competition

4.9.3 Competitive advantages – We are a small business so you can always

guarantee personal treatment. This also allows us to make sudden
changes to meet market fluctuations and new market threats. We require
relatively minimal capital to remain stable.
I have a much stronger artistic ability than any of my current
competitors.

4.10 Market threats – The major external threats to my business is swamping of

the marketplace by substandard amateur companies thus making clients wary
of legitimate professions. Increased home desktop publishers saturation
causing a rapid drop of rates and quality. Larger corporations moving faster
on potential clients than myself due to their higher-grade equipment.

4.11 Distribution Channels – We will get our product to market by shop, home
delivery, mail order, wholesale subscriptions, Phone Orders, e-commerce
Internet orders and Wholesale shipping orders.

4.12 Promotion and advertising

4.12.2 Advertising – Funkomation will advertise via print advertising in Loop
magazine at a reduced rate from contra agreements. Their advertising
manager is a close personal friend who I have worked with before and is

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 guaranteed to help promote Funkomation when he sells ands to larger
corporations.

4.12.3 Publicity/public relations –

4.12.4 Personal Selling – Sales will be undertaken by the owner operator via
the Internet and mail catalogues, and from retail outlets and guitar shops.
Auctions and exhibitions.

4.12.5 Sales Promotion/Merchandising – For Promotion and merchandising

will be Business cards, Posters, T-shirts and Cartoon strips

4.12.6 Calendar of promotional activities –

Jan 2007 Business Cards and Internet advetising
Feb 2007 Promo Guitar
March 2007 Melbourne campaign
April 2007 BFM Advertising
May 2007 Television and Press Release on ALT TV
June 2007 Auction and promo gig
July 2007 Radio and Print Promotion
August 2007 exhibition of guitars.
Sept 2007 Sydney Campaign
Oct 2007 Poster Campaign
Nov 2007 Xmas advertising campaign
Dec 2007 Release party and end of year Auction.

4.12.7 Advertising and Promotional Budget (*Re calender of promotional

activities)
Jan 2007 $200
Feb 2007 $1500
March 2007 $350
April 2007 Contra
May 2007 Contra
June 2007 $350
July 2007 $1000
August 2007 $500
Sept 2007 $1000
Oct 2007 $500
Nov 2007 $450
Dec 2007 $3000

5 FINANCIALS
5.1 Sales estimates – *refer to cashflow
5.2 Variable Costs Estimates – *refer to cashflow
5.3 Fixed Costs Estimates – *refer to cashflow (note: fixed costs minimal due to
small overheads and material costs of working from home.

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 5.4 Profit Loss Statement – *refer to cashflow
5.4.2 Notes to Profit and Loss – earlier months are lower being a production
period and later months are larger being closer to Xmas sales
5.5 Break Even Calculation – *refer to cashflow
5.6 Cash flow – *refer to cashflow
5.6.2 Cash flow Chart-*refer to cashflow

5.7 Forecast balance sheet – *refer to Balance sheet.

5.7.2 Balance Sheet *refer to Balance sheet.

5.8 Start-Up Costs – $5000 toward the following

MARSHALL JCM900 4100 DUAL REVERB HEAD GUITAR AMP
$2699
quantity Guitar Parts list
unit cost subtotal
6 Electric guitar strings, light guage $9.45 $56.70
2 Fender necks 21 frets $199.00 $398.00
2 Fender necks 22 frets $199.00 $398.00
1 Warwick style bass neck $350.00 $350.00
3 Headnuts $11.00 $33.00
2 complete set of tuning nuts 5 string bas $130.00 $260.00
2 complete set of tuning nuts fender electric guitar $65.00 $130.00
1 complete set of tuning nuts 4 string Bass $65.00 $65.00
6 single coil pick-ups $110.00 $660.00
1 4 string bass bridge $40.00 $40.00
2 Floyde Rose bridges $170.00 $340.00
1 standard fender tremolo bridge $60.00 $60.00
2 5 string bass bridges $70.00 $140.00
3 humbucker pickups $200.00 $600.00
2 warwick style bass pickups $250.00 $500.00
5 3.5 mono phono jacks $6.00 $30.00
2 3 way switch $13.00 $26.00
1 5 way Switch $23.00 $23.00
1 toggle switch $12.00 $12.00
5 capacitors $25.00 $125.00
5 volume pots $4.50 $22.50
9 tone pots $3.50 $31.50
5 volume knobs $10.00 $50.00
9 tone knobs $10.00 $90.00
Total $4,440.70

5.9 Equipment already owned:

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 Pentium 3 Computer
Microtek ScanExpress 1200 ED Scanner
Canoscan Scanner
2 Pentium two computers
Sony Black Trinitron 21” Monitor
Panasonic RX37 VHS-C Camcorder
Sony Digital 8 Video Camera
HP Printer
Alcatel Cell-Phone
1996 Toyota Levin

5.10 Capital budget –Initially I will need $6000 to cover the costs
5.11 Owners Personal Budget
*see Personal Budget 5.11

6 OUTCOMES

6.1 Risks and Rewards

The hardest handicap will be my lack of client base for such a specialized
product. However as I have a passion for excelling in everything that challenges
and motivates me I believe that this learning curve with also be one of the
biggest rewards no matter what may eventuate. Also the self confidence and
discipline needed in attempting to rise to the occasion will motivate me in my
personal achievements.

6.2 Insurance

Due to the expensive and specialized equipment full business insurance will be
of the utmost importance. To cover theft, fire and equipment faults and to cover
damage while guitars are on exhibit.

6.3 Contingency Plans

I have the ability to think creatively and troubleshoot most difficult situations
under stress. This is due to working under stress situations and Deadlines in
Animation and Graphics/desk top publishing. These are field where if you
intend to survive or complete a job sometimes you need to adapt to the situation
or come up with alternatives that reach the same conclusion as the client needs.
Having already trained my mother in animation, and found her employment
with the company I was working with at the time, I feel confident in my abilities
to train other Luthier’s in custom airbrushing techniques.

7 THE FUTURE/GOALS

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 7.1 1 Year Goals

Set up a successful guitar building and customization company. To produce and

complete Successful guitars, Fine instruments, songs and audio recordings on
the Internet. Set up a corporate website for marketing and a private website for
advertising my own T-shirts/merchandising to self promote my productions and
to encourage interest in the marketplace in future productions and products.

7.2 3 Year Goals

Be up and running smoothly enough to employ staff and train them in

airbrushing technique.

7.3 5 Year Goals

Produce successful high quality full feature films of an international standard

and market. Be able to communicate and compete in an international level with
over-sea’s competitors.

8 PERSONAL DETAILS

8.1 Date of Birth – 22/12/1972

8.2 Relationship Status – Single

8.3 Education –

High-school:
Fifth form cert.: Math’s, Horticulture, Science, and Computer Studies, English.
Sixth form cert.: Art, Physics, Chemistry, English, and Geography.
Seventh form: B Bursary; History, English, Painting, Sculpture, Chemistry.
University Entrance
Tertiary Education:
1991 silver Service certificate (90% pass)
1991 Diploma in Art (Majoring in Film-making (Initiated Film-making Major
as part of the Sculptural Department))
1992 Television and Video Operations Certificate (Grade A Student)
1993 Television and Video Production Diploma (Pass with Merit (one of Two
students to pass out of the eighteen students that attempted the course))

8.4 Experience

Work Experience
1991 first Sculptural Exhibition at the French Art Gallery with Esme Towns
1991 2nd Sculptural Exhibition at Titirangi Community Hall with Judith Towns

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1992 OUTER ASPECT :Installing the Sky Trackers and Video Wall for the
New Zealand Music Awards
:Installing the Sky Trackers for a private party at the Green Room (Newton
Gulley)
:Installing the Video Wall for Sunday Grandstand (TVNZ)
:Installing the Video Wall for OUTER ASPECT Private Party

1992 Cameraman to 10-minute intro for Pan Pacific Travels incentive to Apple
Computers
1993 Trained Students in Camera Operations and Production for Melons Bay
Primary School
1994-1996 Toonz Animation (First Employee with no formal Animation
Training)
Subcontracting to Walt Disney Television on such shows as Tex Tinstar, Pith
Possum, Quack Pack, Timon and Pumba (off-shot of the popular children’s
feature The Lion King), Redux Riding Hood, Third Pig (the only animated
episode of Tales From the Crypt).
In-betweener to Key Clean up and Animation.
1996 Sam designed ,Built and conceptualized the Animation side of Toms More
or Less Video for Jungle Fungus

1996 trained Beverly Dawn Towns in animation

1997 Fruit Loops AD and a Coke AD for Flying Fish Animation in North
Sydney
1997 series for the ABC called Petals for Cat flap Animation
1998 sculpting for his third Exhibition (a Co-exhibit with Beverly Towns and
Marion Towns at Lopdell House in Titirangi).

1999 Cartoonist/illustrator for IN DAH LOOP a entertainment page for LOOP

Magazine. Continued on to do advertising ,Distribution and Desktop Publishing
for LOOP Magazine.

Finally conceiving and Co-Directing the LOOP CD for the September issue to
coincide with their first cover price issue. The CD Featured artists such as The
New Zealand Youth Choir, Bongmaster, Trinity, Pith Black, Mark de Clive
Lowe, Teariki, 50hz, DJ Cuffy, Twin Set, King Kapisi, House of Downtown
and Salmonella Dub.
1999 ADCOM Mac Operator
1999 Illustrator. The cover to “Outlanders” for Ashton Scholastic.
2000 Freelance Multi-media Art Director and Illustrator for Comparto Records

Applications Experience:
Macromedia: Dream weaver, Flash, Director, SoundEdit16.
Desk Top Publishing: Quark Xpress, Freehand, PageMaker, Corel Draw and
Corel Photo paint
3-D Design: Wavefront Maya, Pixels.
2-D Design: AutoCAD R12.
Image processing: Photoshop, Paint shop Pro..

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 Sample editors: ProTools.
Cell-animation: Deluxe paint.
Non-linear video editing: Avid, Adobe Premiere, Super Line Test.
Internet client software: Netscape, Explorer.
Familiar with MS Word, MS Office, and Excel Spreadsheets.

Film and Video:

Video editing experience on VHS, S-VHS, Beta SPII, HIBAND, and non-linear
systems such as the Avid, Adobe Premiere and Super Line Test.
Skilled in Camera Operations for Video Hi8,VHS, S-VHS, BETACAM and
HIBAND and Super 8mm Film.
Lighting, Script Writing, Budgeting, Storyboarding, and Make-up, Copy-write
law, Production, Direction and Sound Engineering.

Art and Design Skills:

Photography and Development. Printmaking including Screen-printing,
Mezzotint, Acid Etching, Woodcut, Linocut and Photo Emulsive. Sculpture in
all mediums. Jewelry making, Welding. Painting in all mediums. Graphic
Design, Mould-making, Mask Making and Prosthetics.

8.5 Hobbies and Interests

Acting, prosthetic make-up and mask making, puppeteering and puppet making,
song-writing and performance (singing and guitar), reading and literature,
psychology and philosophy, astronomy, massage, reflexology, homeopathy,
theatre, dance, cooking, electronics, computers, robotics, and all aspects of
creative art in all forms.

9 CONCLUSIONS
9.1
Due to the type of specialized luxury product that GuitarNZ incorporates the
financial remuneration is enormous while the customer base is very small. With
my previous skills training and experience I believe I have competent abilities
to be able to be selfemployed in this industry. There are few individuals that can
offer such a scope of different skills in such specialized markets as guitar
building. There has been a minimal amount of self-promotion and advertising in
the industry so far and still clients are beginning to approach me for their
custom guitar projects. Clients private faith in my abilities to produce a quality
service and products has made them continue to offer opportunities and projects
to me over my competitors, strengthening my track record and adding
achievement after achievement to my employment history. I think that if I
continue to produce high standard work I will continue to carve a comfortable
career that is both personally forfulling and meets the physical requirements of
my back disability (Fibrio Myalghia).

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