FLIP CITY OFFERING MEMORANDUM, Developer Broad Range Development, LLC 

BROAD RANGE ENTERPRISES

HOLYOKE FLIP CITY

Studio Development

State of the art entertainment studios. 400,000 sq feet of space. The largest on the East Coast with a city as its backdrop for dozens of productions annually.

Holyoke is ‘New York City Streetscape’.
~Michael McCarthy

 

 

5 Star Luxury Hotel Convention Center and Arena

Connected to the Convention Center and steps to a modern 5 floor indoor arena, ‘The Dottie Mac 5 Star Luxury Spa and Resort’ places you moments from New England’s best. Stay within walking distance of Holyoke’s Great American Canal Walk System.

 

High Speed Data Center

The evolution of business approaches and work patterns has secured high speed networks and data centers as the fulcrum of critical operations for organizations around the world.

Cyber Street Studios TM will data stream all studio content and more. As we evolve, we will be acquiring other video and entertainment content libraries to offer our subscribers.

 

 

Broad Range Development

Broad Range Development is a real estate development company which oversees and manages the development and re-development of real estate primarily in and around the City of Holyoke, Massachusetts.

 

 

Broad Range Development’s primary function is to build our main studio facilities, Canal Street Studios, along the historic canals in Holyoke. It is also responsible for all other real estate developments that are in support of the studios.

Residential, Industrial and Commercial developments are all part of the Broad Range Enterprises master plan for Holyoke. We call the overall project 'Flip City'.

Broad Range Enterprises has developed new partnerships that include financial support through our new division Broad Range Development (BRD) that is focused on assisting our partnered groups in securing funding to purchase and redevelop existing properties. Our partnered organizations subscribe to several forms of affordable housing construction technologies.

BRD has the following primary objectives for our affordable housing projects:

  • Environmentally Friendly
  • Non-Toxic
  • Cost Affective Materials
  • Affordable Construction
  • Economic Manufacturing
  • Simple Technologies to Train Unskilled Workers
  • Create Badly Needed Jobs

Maps

Broad Range Entertainment

Broad Range Entertainment is a wholly owned subsidiary of Broad Range Enterprises. Its primary function is to develop, produce and distribute motion pictures, television shows, web-isodes, pocasts and interactive content produced under multiple license agreements with independent production companies. Our distribution is through standard industry distribution channels as well as our CDN (Content Delivery Network), Cyber Street Studios.

 

Broad Range Properties

Broad Range Properties is a real estate management company which oversees and manages all properties developed by Broad Range Development. It primarily oversees the day-to-day operations of all properties including our Residential, Industrial and Commercial Corporate Assets.

 

EXECUTIVE SUMMARY

Broad Range Development

Broad Range Development, LLC, as exclusive Developer, is pleased to offer a remarkable investment opportunity to build a world class Motion Picture and Television Production Studio, a world class 5 Star Luxury Hotel with a total of 2,000 rooms including lobby areas and administrative offices, an 596,976 sf Arena that is able to host big ticket events, 45,229 sf of Nightclub’s, 57,887 sf Spa, and 84,720 sf Retail, 60,000 SF of luxury opulent Villas, plus more on an outstanding 41.5- acre development site.

Situated on the Historic Canals of Downtown Holyoke, permits are expected to be obtained within a 9-month period for a major hotel to develop a visionary themed large-scale resort and motion picture production destination. An expected approved height allowance from the FAA that ranges from 430 feet to 266 feet and will make for a highly visible 360-degree views of some of nature’s most spectacular foliage.

Holyoke possesses a unique international appeal that will draw an incredible number of productions and visitors, and they will need a 5 Star Luxury Hotel to stay at while filming in and around town.

Holyoke's growth is expected to be bolstered by a mix of new industries relocated in and around town. Over 4 million square feet of new nearby convention space and more than $1 billion of new resort, retail and entertainment developments will elevate the overall “Western Massachusetts Filming Experience”.

The Goals

  • Economic Benefit to Holyoke 15,000-20,000 construction jobs & 8,000-10,000 permanent jobs
  • Location of a 20,000-seat arena featuring multiple artists plus basketball, ice skating and boxing as well as Motocross racing and Monster Truck crushing
  • Studios 400,000 sf of stages with state-of-the-art technology
  • Sites are generally clear of any structures which will allow for quick land site grading
  • 1,900 feet approximately on Historic Canals with planned water features and shows.
  • 430’ - 266’ of FAA maximum proposed height allowance
  • Zoning flexibility allows for luxury retail, multifamily, retail, timeshare
  • Local Airport for those who arrive in their private aircraft
  • CCTV and security system with Cameras, Monitors, DVR’s is planned for the site.

THE SITES

Studios

  • Includes the largest sound stage on the East Coast
  • All new, State of the Art Construction
  • Designed from the ground up for film and television production
  • 400,000 sq ft of sound stages
  • Eight stages ranging in size from 2,000 sq ft to 120,000 sq ft
  • Grid Heights up to 40 feet
  • 28’ x 20’ elephant doors between all stages
  • 9,000 to 12,000 amps of power per stage
  • 150 to 200 tons of cooling per stage
  • Wood Grid
  • 200,000 sq ft of support offices, dressing rooms, screening rooms
  • Green room, food services, lighting & grip equipment
  • Post-production facilities and a vocational school to train film & media students from surrounding High Schools, Colleges, and Universities
  • Abundant onsite parking

5 Star Resort

  • 3,549,455 sf of Building Area
  • 422,486 sf-2,000 key hotel, lobbies, admin, support- 2 towers – 31 stories with-360 views
  • 596,976 sf arena with 20,000 seats
  • 84,720 sf - 4 retail locations
  • 57,887 sf SPA – fitness – health club
  • 45,229 sf – nightclubs and entertainment on roof top of hotel towers
  • 138,688 sf – pools, wave pool, beach club, gardens & outdoor entertainment
  • 60,000 sf – opulent luxury villas (8) with dedicated pool
  • 16,990 sf - high end restaurants
  • 437,243 sf – convention, ballroom, meeting facilities
  • 43,286 sf - wedding facilities/multi-purpose hall
  • 1,688,340 sf – parking garage with 5 levels for 5,000 cars next to arena 

PROPERTY DESCRIPTION & APPROVAL

Canal Street Studios – 400,000 sf Production Studios

Studios needed in New England.

Massachusetts now has one of the most attractive tax incentive programs in the country for filmmakers. There are currently 40 films ready to begin production in the New England area. These films would mean over $500,000,000 in Statewide spending.

Currently there is only one major facility being built for film production in the New England area.

Comparison with New York

New York has 900,000 square feet of stage space available for production Silvercup Studios in NY (18 soundstages) has a three-year waiting list

Currently New England has:

30,000 sq. ft of stage space
120,000 sq. ft of support space
There’s a great need for studio space

The Dottie Mac – 5 Star Resort Hotel & Spa

The ‘Dottie Mac’ a 5-Star Resort site is comprised of 15 parcels totaling approximately 41.49 acres located between the 1st and Second Level Canals.

An Alternate location is also being considered which involves purchase of the former Mater Dela Rosa Catholic Church Property currently being demolished.

  • Eight private luxury villas each having 7,500 sf of opulently decorated open areas and multi-bedroom suites including private spas
  • A 437,243-sf convention center space designed for the smaller conventions and special meetings and entertainment
  • A multistory parking garage capable of housing as many as 5,000 cars
  • 138,638 sf of swimming pools with garden like settings
  • 84,720sf of luxury shopping with little or no competition close by
  • Two blocks to I-391 Freeway
  • Site of an extraordinarily beautiful 5-star hotel with 2,025 luxury rooms
  • Many high-end restaurants and specialty high end retail shops 

PERMITTING PROCESS

The following is an outline of the estimated 6 to 9 month permitting process an investor will follow to enter into a development agreement with the City of Holyoke. Prior to starting the development agreement process with the City, the developer would acquire permit approvals from the Holyoke City Council.

Permitting Milestones

Pre-submittal filing:

  • Initial Regional Infrastructure Services Evaluation (RISE)
  • Traffic Studies
  • RISE reports distributed upon receipt
  • Agencies encouraged to submit draft comments
  • Pre-submittal conference
  • Special Use Permits
  • Development Agreement 

HOTEL MODEL

Dottie Mac Revenue Model

World-class entertainment drives traditional revenues like room rate & occupancy.

Adding Signature F&B venues, plus merchandise, studio, and other unique elements drives even more revenues.

Number of Hotel Rooms 200
Rooms Available 73,000
Rooms Sold 54,750
Occupancy 75%
ADR $325.00
Rooms RevPAR $243.75
Total RevPAR $539.61

Operating Revenue:

Rooms 17,793,750
Food and Beverage 11,591,515
Entertainment Venue 8,827,883
Other Operated Departments 930,419
Miscellaneous Income 248,112
Total Operating Revenue 39,391,678
EBITDA Before Reserves 7,573,306

STUDIO MODEL

Canal Street Studios Model

  • Marketing, Advertising Costs
  • Promotional Budgets
  • Product Placement
  • Direct Ticket Sales
  • Merchandising
  • Foreign Sales
  • Television Rights, Streaming, and VOD
  • Social Platform Distributing

Industry Overview

We can hardly talk about the film and video production industry without mentioning big players in the industry such as 21st Century Fox, Time Warner, NBC Universal, The Walt Disney Company and Viacom Inc. et al. These are companies that truly define the trends in the industry.

Basically, film and video production industry is an industry that is responsible for producing and distributing motion pictures and videos. This industry does not include third-party providers such as distributors and disc manufacturers, as well as products, such as television shows and made-for-television movies, aimed specifically toward television et al.

Even though film and video production business can be expensive to run, the business is indeed a thriving business that has loads of players making huge profits from the industry. One thing is certain, if a film and video production company can successfully produce a major hit movie or musical video; it will not be too long before video recording contracts come calling from all over the United States and beyond.

Players in the Film and Video Production industry struggled with mounting film production costs and of course the decline in theater/cinema attendance.

It is now common in recent times to find the average movie producers increasingly investing in high – end special effects hence they choose to shift their focus toward generating high ticket sales as against increasing the number of dramas and comedies, which usually generate comparatively lower revenue.

The industry is exploring now maximizing new distribution channels to continue to increase revenue generation to break even after spending huge sum of money to produce a movie.

Any entrepreneur who intends to start a film and video production company must be ready to pull enough cash to be able to acquire expensive film and video production gears, for location shooting equipment and professional movie editing software amongst many other expenses associated with movie production.

In other to cut cost especially when starting out, movie producers often rent shooting equipment for a fraction of its cost, which has helped limit the massive capital expenditures that would otherwise be necessary to produce major films.

For instance, in 2015 alone, for every dollar spent on labor, movie producers incur an estimated $0.22 in capital expenditures. In the last five years, capital intensity has remained fairly constant. The Film and Video Production industry still depend on experts (highly skilled workers and artists) in all stages of the production process, and highly talented and hardworking employees are required for planning, shooting, editing and distributing films.

The Film and Video Production industry is indeed witnessing a steady growth over the years- especially in countries such as the United States, Nigeria, India and China et al. Though for some underdeveloped countries where piracy is still on rampage, the growth is a bit redundant.

Statistics has it that the Film and Video Production industry in the United States of America, is worth $34bn, with an estimated growth rate of 0.7 percent. There are about 6,527 registered and licensed film and video production companies in the United States, and they are responsible for employing about 63,228 people.

One good thing about starting a film and video production business is that even if you decided to start it in the United States of America, your market would not be restricted to business opportunities in the U.S.; the world will be your target market.

Many thanks to the internet that has made the world a global village. All you need to do is to strategically position your film and video production brand on the internet and you will be amazed at the rate people will be calling you from all parts of the world.

Film Production Executive Summary

Film production is one art that requires a ton of skills. This is so that nothing short of the best is produced. Broad Range Entertainment™ Film and Video Production Company is a one stop and standard film and video production company that is fully equipped with the latest technology in the film and video production industry.

Our film and video production studio will be located in the heart of New England, Holyoke – Massachusetts, U.S and we are positioned equally distant from Boston and New York Cities. We will be focused on the New York Market and will work for a wide range of clients ranging from individual clients to corporate organizations, national clients to international clients and players in the New York City film industry et al.

Broad Range Entertainment™ Film and Video Production Company will engage in all aspect of business services synonymous to standard organization operating in the film and video production industry. Our business goal is to work towards becoming one of the leading film and video production brand in the whole of New York and in the nearest future compete with the leaders in the industry not only in the United States but also in the global stage.

We are not ignorant of the fact that building a standard and world class film and video production company from the scratch requires huge capital base- essentially for the purchase of world – class and latest film and video production equipment, which is why we have perfect plans for steady flow of cash from our business partners with interest in our line of business.

We can confidently say that we have a robust financial standing, and we are ready to take on any challenge that we encounter in the industry.

We will ensure that all our employees are selected from a pool of talented and highly creative people with eyes for good movies in and around New York – New York (with bias from Hollywood) and also from any part of the United States.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

At Broad Range Entertainment™ Film and Video Production Company our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely and of course producing movies and videos that can compete with the best in the world. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Broad Range Entertainment ™ Film and Video Production Company is owned majorly by Michael McCarthy and other partners. Michael McCarthy is a certified and licensed film producer, he graduated from New York Film Academy and he has well over 15 years hand on experience in the film and video production industry working for leading film and video producing companies in Hollywood prior to starting his own film and video production company. He will build the business alongside other experienced partners who have successfully carved a niche for themselves in the industry.

Our Products and Services

We do not want to leave any stone unturned when it comes to producing the best products and services. So, Broad Range Entertainment™ Film and Video Production Company is going to offer a variety of services within the scope of the film and video production industry in the United States of America.

Our intention of starting our film and video production business in Inglewood – Los Angele is to make profits from the film and video industry, and we will do all that is permitted by the law in the US to achieve our aim and business goals. Our business offering is listed below;

  • Action and adventure films
  • Comedy films
  • Drama films
  • Thriller/suspense films
  • Musical Videos
  • Documentaries
  • Other films (Commercials and Advertisement et al)
  • Creating a timeline of production for film and video and ensuring that timelines are met
  • Seeking financing for film and video productions
  • Producing film and video programming
  • Publicizing film and video productions
  • Distributing film and video (if the company is also involved in all of the above)
  • Film and Video Production Merchandize (Sale of Film and Video Production Equipment)
  • Film and Video Production Consultancy and Advisory Services

Our Mission and Vision Statement

Our vision is to build a standard and world – class film and video production business that can favorably compete with leaders in the industry.
Our mission is to build a world class and well-equipped film and video production company that will produce standard movies that can be generally accepted in all parts of the world; we want to build a film and video production brand that can work for clients not only in the United States of America and Canada, but in all parts of the world.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Broad Range Entertainment™ Film and Video Production Company will build a solid business structure that can support the growth of our film and video production business.

We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become one of the leading films and video production brand in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset.

We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Broad Range Entertainment™ Film and Video Production Company.

  • Chief Executive Officer
  • Entertainment Lawyer/Legal Secretary
  • Studio Manager
  • Film Producer
  • Recording Engineer
  • Admin and HR Manager
  • Marketing and Sales Executive
  • Accountant
  • Front Desk Officer

Job Roles and Responsibilities

Chief Executive Office

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Entertainment Lawyer/Legal Secretary

  • Responsible for drawing up contracts and other legal documents for the company
  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
  • Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.

Studio Manager

  • Responsible for managing every activities that goes on in the studio
  • Responsible for managing the company’s video editing department
  • Handle any other responsibility as assigned by the Chief Executive Officer

Film Producer

  • Responsible for developing concept and producing movies from start to finish
  • Responsible for choosing the right locations to shoot a movie
  • Works with the accountant and other stakeholders in the company to draw – up a budget for any movie project
  • Handle any other responsibility as assigned by the Chief Executive Officer

Recording Engineer

  • Responsible for handle any picture and sound related job for the company; helps achieve certain specific sounds or feelings to portray through that matches with the movie (especially for soundtracks).
  • Responsible for handling all aspect of video shooting on locations

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of film shooting and studio equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Facilitates and coordinates strategic sessions.
  • Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
  • Oversees the smooth running of the daily office activities.

Marketing and Sales Executive

  • Once the movie is ready, then the marketing team will go out to market and promote the album
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients, cinema operators and movie distributors
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Front Desk Officer

  • Receives Visitors/clients on behalf of the organization
  • Receives parcels/documents for the company
  • Handles enquiries via e-mail and phone calls for the organization
  • Distribute mails in the organization
  • Handles any other duties as assigned my the line manager

SWOT Analysis

Broad Range Entertainment™ Film and Video Production Company engaged the services of a core professional in the area of film and video production consulting and business structuring to assist the organization in building a standard and world – class film and video production company that can favorably compete with other leading film and video production brands in the United States of America.

Part of what the business consultant did was to work with the management of the company in conducting a comprehensive SWOT analysis for Broad Range Entertainment™ Film and Video Production Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Broad Range Entertainment™ Film and Video Production Company;

Strength

Our core strength lies in the power of our team and the latest film and video production equipment that we have. We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.

We are well positioned in the heart of New England, and we know we will attract loads of clients from the first day we open our film and video production company for business.

Weakness

As a new film and video production company based in New England – it might take some time for our organization to break into the market and attract some well – established artist and bigger corporations and investors; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into the promotion our business the way we would want to.

Opportunities

The opportunities in the film and video production industry is massive especially in a place like New England – where we have Boston and New York productions to be filmed, and we are ready to take advantage of any opportunity that comes our way.

Threat

We like other brands in the industry, have our own fair share of threats. Hence, technology and the internet which of course is a major tool for the advancement and gains achieved in the film and video production industry can also poses a threat to the industry.

The truth is that with the advancement of technology, it is now easier for individuals to produce home videos and musical videos without the help of professional film and video production companies. So also, just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new film and video production company in same location where our target market exists and who may want to adopt same Business model like us.

Market Analysis

Market Trends

Online video is one major trend in the film and video production industry. Recent statistics from Comscore show that on an average day in 2020, over 100 million Americans viewed online video content. This represents growth of 43 percent over the previous year.

Well over 43.5 billion videos were streamed in December 2020 alone; a 44 percent increase over the previous year. This growth shows no signs of dwindling, as people increase the absolute number of videos they watch, in addition to viewing longer form content on leading video sites such as Netflix and Hulu.

Entrepreneurs that are venturing into the film and video production industry are coming in with creativity and good business skills. The fact that it is highly competitive in the industry does not in a way stop some film and video production companies from declaring profits year in year out.

Another known trend in the film and video production industry is that most film and video production companies are trying as much as possible to recreate themselves on a regular basis and to be on top of their game.

Our Target Market

When it comes to film and video production business, there are no exemptions to who you can market your services products to especially finished movies. Your movies can be market to adults, children, teenagers, corporate organization, government and everyone who can afford to purchase a movie et al.

Over and above, our target market as a film and video production company cuts across people of different class and people from all walks of life and corporate organizations. In view of that, we have created strategies that will enable us reach out to various corporate organizations and individuals who we know will need our products and services.

We have conducted our market research and survey and we will ensure that our film and video production company attract the kind of artists and clients we would love to work with. Below is a list of the people and organizations that we have specifically market our services to.

  • Households
  • Artists
  • Advertising Agencies
  • Corporate Organizations (Branding and Advertising Agencies et al)
  • Churches
  • Teenagers, Adults and Children
  • TV stations

Our Competitive Advantage

We are mindful of the fact that there are stiffer competition in the film and video production industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Broad Range Entertainment™ Film and Video Production Company might be a new entrant into the film and video production industry in the United States of America, but our competitive advantage lies in the power of our team and the latest film and video production equipment that we have.

We have a team that can go all the way to give our clients value for their money; a team that can produce world class movies that can favorable compete with movies produced by leaders in the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups film and video production companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

Sales and Marketing Strategy

Sources of Income

Broad Range Entertainment™ Film and Video Production Company is established with the aim of maximizing profits in the film and video production industry and we are going to go all the way to ensure that we do all it takes to attract our target market.

Broad Range Entertainment™ Film and Video Production Company will generate income by offering the following services and products.

  • Action and adventure films
  • Comedy films
  • Drama films
  • Thriller/suspense films
  • Musical Videos
  • Documentaries
  • Other films (Commercials and Advertisement et al)
  • Creating a timeline of production for film and video and ensuring that timelines are met
  • Seeking financing for film and video productions
  • Producing film and video programming
  • Publicizing film and video productions
  • Distributing film and video (if the company is also involved in all of the above)
  • Film and Video Production Merchandize (Sale of Film and Video Production Equipment)
  • Film and Video Production Consultancy and Advisory Services

Sales Forecast

One thing is certain when it comes to movies and documentaries; they never die and the demand for good movies and documentaries will continue to grow. This goes to show that any film and video production company that is known to always produce good movies will continue to attract talented artists, corporate organizations, and clients and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in New York, Boston and beyond and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York – Boston to other cities in the U.S. and even the global market.

We have been able to critically examine the film and video production market and we have analyzed our chances in the industry, and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York – NY.

Below is the sales projection for Broad Range Entertainment™ Film and Video Production Company, it is based on the location of our business and other factors as it relates to film and video production start – ups in the United States.

First Year $10M
Second Year $17.5M
Third Year $25M

This projection is done based on what is obtainable in the industry and with the assumption that there will not be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Our sales and marketing team will be recruited based on their vast experience in the film and video production industry, and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent movies and videos speaks for us in the marketplace; we want to build a standard and well equipped film and video production company that will leverage on word of mouth advertisement from satisfied clients/artists.

Our business goal is to build Broad Range Entertainment™ Film and Video Production Company business to become one of the leading choices in the whole of New York – NY and Boston – MA market which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Broad Range Entertainment™ Film and Video Production Company is set to make use of the following marketing and sales strategies to attract clients.

  • Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in the film and video industry (movie distributors and cinema operators) in New York - Boston and other parts of the U.S.
  • Advertise our business in relevant entertainment magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local film festivals, expos, seminars, and concerts et al
  • Create different packages for different category of clients in order to work with their budgets and still produce top notch videos or movies for them
  • Leverage on the internet to promote our business
  • Engage in direct marketing approach
  • Encourage word of mouth marketing from our loyal and satisfied clients

Publicity and Advertising Strategy

We are aware that there is not any business that despises new clients. This the reason why we have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the film and video production industry by storm which is why we have made provisions for effective publicity and advertisement of our studio company. Below are the platforms we intend to leverage on to promote and advertise Broad Range Entertainment™ Film and Video Production Company.

  • Place adverts on both print and electronic media platforms
  • Sponsor relevant TV shows and radio programs
  • Maximize our official website to promote our business
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (music online forums) to promote our business.
  • Offer Pro Bono services as part of our community social responsibility
  • Ensure that our we position our banners and billboards in strategic positions all around New York - Boston
  • Brand all our official cars/buses and ensure that our trademark label is boldly printed in all our movies and videos (DVDs) et al

Our Pricing Strategy

At Broad Range Entertainment™ Film and Video Production Company we will keep our fees and prices of videos a little below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who engage our services to help to produce movies or short videos especially for advert purposes.

Payment Options

At Broad Range Entertainment™ Film and Video Production Company, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via mobile money
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

Startup Expenditure (Budget)

The cost of setting up film and video production business can be quite expensive especially if you are all out to start a standard film and video production company. Aside from the money required to purchase the latest film recording and production equipment, you would also need a huge cash base to be able to attract and pay well established film actors to act in your movies.

Essentially, this is the area we are looking towards spending our start – up capital on;

  • The Total Fee for incorporating the Business in Massachusetts – $1,750.
  • The budget for Liability insurance, permits and license – $2,500
  • The Amount needed to acquire a suitable Office facility with enough space for standard movie production studio in a business district 6 months (Re – Construction of the facility inclusive) – $200,000.
  • The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
  • The cost for equipping the movie production studio with the required video gears – $150,000
  • The Cost of Launching our official Website – $600
  • Budget for paying at least 5 employees for 3 months and utility bills – $100,000
  • Budget for paying actors and taking care of logistics in movie locations – $500,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $20,000

Going by the report from the research and feasibility studies, we will need about $1 million to set up a medium scale but standard film and video production company in the United States of America. Here are some of the key film and video production equipment and gear that we would need to set up our film and video production company.

  • Standard Video Cameras
  • Tripods
  • Camera lights/Three-Point Lighting Kit
  • Shotgun Mic with boom pole accessories
  • Audio (XLR) Cables
  • Wireless Microphone
  • Lenses: Wide Angle, Clear “Protective” Lens, Polarizer, Zoom Lens, Macros, etc.
  • Light Reflector
  • DSLR Shoulder Mount Rig
  • Video Editing Software and Video Editing Computer (MacBook Pro Laptop / Apple MacBook Pro Laptop)
  • External Hard Drive
  • Digital video workstation
  • Generating Funding/Startup Capital for Broad Range Entertainment™ Film and Video Production Company

Broad Range Entertainment™ Film and Video Production Company is going to start as a partnership business that will be owned and managed by Michael McCarthy and his business partners. They are the financial of the business, but may likely welcome other partners later, which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.

Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Broad Range Entertainment™ Film and Video Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to ensure that every movie that we produce is a hit back to back and it appeals to the needs of the society we intend selling the movies

Broad Range Entertainment™ Film and Video Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Renting of Office Facility: Completed
  • Setting Up Of The Recording Studio: In Progress
  • Intellectual Property Protection and Trademark: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: In Progress
  • Opening Online Payment Platforms: In Progress
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Not Started
  • Purchase of All form of Insurance for the Business: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Not Started
  • Recruitment of employees: In Progress
  • Purchase of the Needed studio / musical gadgets, furniture, office equipment, electronic appliances, and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry: In Progress

CAPITAL REQUIREMENTS

Sources and Uses of Funds

The total capital needed for this project is $3.359 billion.

The hard costs associated with the project amount to $3.001 billion.

Soft costs total $358 million as shown in the table below. 

*All values are in thousands ($000)

Company Data

Rate

Required Rate of Return 10%
Tax Rate 21%

 

Initial Investment Hard Cost

YEAR

1

2

3

 Land Acquisition    $194,444.00    
 Hotel Build Cost    $982,669.00    
 Arena Build Cost    $880,522.00    
Studio Build Cost    $232,546.00    
Host Cost Rehab Flips   $271,243.00    
Hard Cost Retail Hotel   $50,832.00    
Hard Cost SPA   $23,155.00    
Hard Cost Studios   $61,172.00    
Hard Cost Nightclub   $22,615.00    
Hard Cost Parking Garage   $160,393.00    
Hard Cost H2 Power Plant   $146,000.00    
Hard Cost Windmills 3MW Each 50x   $200,000.00    
Hard Cost Sub-Station Utility   $32,000.00    
Hard Cost Facilities/Multipurpose   $12,986.00    
Hard Cost Convention Center   $109,311.00    
Hard Cost Productions   $70,000.00    
Studio Equipment   $45,000.00    
Hard Cost High End Restaurants   $9,175.00    
Hard Cost Luxury Opulent Villas    $45,000.00    
Hard Cost Municipal Facilities - 1st Response   $28,750.00    
Tenant Improvements   $680.00    
Pre-Construction Due Diligence   $10,000.00    
Furniture Luxury Villas   $6,000.00    
Hardware (e.g. In-House Servers)   $25,000.00    
Software (e.g. In-House eCommerce Catalog   $15,000.00    
Development Third Party Site Design Development   $150,000.00    

 Total Initial Investments

 

$3,784,493.00

   

Project Revenues

YEAR 

 2

 3

Property Revenue - Flips Condos Homes Multi Purp Commercial   $60,000.00 $66,000.00 $72,400.00
Property Revenue - Hotel   $329,610.00 $348,795.00 $364,047.00
Property Revenue - Arena   $214,972.00 $223,140.00 $231,620.00
Property Revenue - Convention Center   $293,062.00 $309,767.00 $321,625.00
Property Revenue - Separate SPA & Health Club   $18,824.00 $19,312.00 $19,876.00
Property Revenue - Studios   $255,460.00 $275,480.00 $295,432.00
Property Revenue - Entertainment Productions   $210,000.00 $300,000.00 $600,000.00
Property Revenue - Nightclub   $90,000.00 $93,420.00 $96,970.00
Property Revenue - High End & Regular Restaurants   $714.00 $741.00 $769.00
Property Revenue - High End & Regular Shops   $9,743.00 $10,133.00 $10,358.00
Property Revenue - Luxury Villas   $62,415.00 $64,787.00 $67,429.00
Sale Electrical Power $0.1331 x 150MW   $174,893.00 $174,893.00 $174,893.00
Revenue Entertainment Productions   $210,000.00 $300,000.00 $450,000.00
Incremental Sales Enhanced Promotional Effectiveness   $25,000.00 $25,000.00 $25,000.00
Incremental Sales Increased Partner Participation   $25,000.00 $25,000.00 $25,000.00
Reduced Travel Costs   $25,000.00 $25,000.00 $25,000.00
Reduced Customer Service Costs   $50,000.00 $50,000.00 $50,000.00

Total Benefits

 

$2,054,693.00

$2,311,468.00

$2,830,419.00

         

Costs (Excluding Initial Capital Investments)

YEAR

1

2

3

Real Estate Taxes   $7,777.76 $7,777.76 $7,777.76
Working Capital   $10,000.00 $10,000.00 $10,000.00
Net Funds Short Term WBS   $70,187.00    
Project Insurance   $5,000.00 $5,000.00 $5,000.00
Brokerage Fees   $5,058.00    
Retail Lease Brokerage Fees   $6,000.00    
Other Costs Additional Finance Fees   $16,511.00    
Maintenance Fees Windmills 50x $48k/yr   $2,400.00 $2,400.00 $2,400.00
Cost per kWH less than $0.01 x 150MW   $13,140.00 $13,140.00 $13,140.00
Entertainment Productions   $75,000.00 $100,000.00 $200,000.00
Project Management Customer Support   $35,000.00 $35,000.00 $35,000.00
Advertising, Search-Engine Registration   $10,000.00 $10,000.00 $10,000.00
Depreciation on Capital Expenditures 3yr Period   $1,261,497.67 $1,261,497.67 $1,261,497.67

Total Costs

 

$1,517,571.43

$1,444,815.43

$1,544,815.43

         

Totals

YEAR

1

2

3

Net Benefits (Costs)   $537,121.57 $866,652.57 $1,285,603.57
Tax   $112,795.53 $181,997.04 $269,976.00
Value After Tax   $424,326.04 $684,655.53 $1,015,626.82
Depreciation Added Back   $1,261,497.67 $1,261,497.67 $1,261,497.67
Cash Flow -$3,784,493.00 $1,685,823.71 $1,946,153.20 $2,277,124.49
Cumulative Cash Flow -$3,784,493.00 ($2,098,669.29) ($152,516.09) $2,124,608.40
         

Evaluation Metrics

       
Net Present Value (NPV) $1,067,302.42      
Internal Rate of Return (IRR) 24.59%      
Payback Period (In Years) 2.7      
         

*Reflects preliminary Company estimates. Please refer to Disclaimer herein regarding Projections.

 

 

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