Heartland GIS LLC | Application Preview
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General Information
Business Registration Number: 2068548
Location: Delaware, OH, United States
Length of Operation: 11plus
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: Less than $100k
Open to Loans: NO
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Funding Usage
Funding will be used to purchase a Vinyl Record pressing machine. Along with it's necessary components, maintenance, salary, rent, goods, and utilities.
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Business Plan
The average cost to press 100 records is $1,225 dollars. We plan to charge $3,000 - $4,000 per 100 records. At $3,000 that is a 59% margin, or we make $1,775 per run. At $4,000, it is a 69% margin or profit of $2,775 per run. 1 person can do a 500 record press in 1 day. Even at just 1 order per week, very conservative; the net profit per year would be $92,300 to $144,300. Based on demand, it is likely to have 2 to 3 orders per week. Extra income will be saved to purchase additional presses (Presses cost @$120,000 [$140,000 fully landed]). 1 person can work 2 presses. The $3,000 - $4,000 charge is less than current pricing for pressing services (by the larger presses) and will attract a very large market that could be booked out several years in advance. We will be able to grow without taking on any additional debt. Even with several machines the demand will still outstrip the supply, thus producing a steady and consistent positive revenue growth. We will only need to bring on additional staff as needed, and the staff will always be right-sized based on workload. I have successfully operated a small business for over 15 years and am well versed in its operations. I have a very high client retention rate (several clients are still with me after 15 years) and I have a very low employee turn-over rate. I know how to diversify offerings and services which leads to greater potential for business longevity. For this particular venture, I will have a preferred hiring preference for veterans. This business will be located in a HUBZone. The vinyl record pressing process represents the last stage of a record being produced. We do not require any specialized skill for this stage of record production. All of the technical steps will have already been done (Audio Mastering/Engineering, Lacquer Cutting for record molding, etc). While the machine is specialized to press vinyl albums, there are no special requirements needed for its operation. It doesn't produce any fumes, it doesn't generate any heat, it is very safe to operate. All that the operator must be able to do is lift a 50lb bag of pvc plastic to feed the machine and perform visual quality control inspection of a pressed record. The other steps are to package for shipping. Thus, we will not require any specialized skills that could potentially jeopardize production. We will be filling a niche sector where there is forecasted long-term demand. The needs are minimal for startup and to be fully operational. There are high margins for return on any investment. It will be managed by a successful small business owner with a proven track record. There is consistent and measured growth planned that will not require the need to take on debt. It will operate in a HUBzone and will employ veterans. There is something 'cool' about being in the business of making records.
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Self Identified Competition
At this moment there are no true competitors. There are other small press operations, but they are actually encouraging the creation of more small press start-ups as they cannot serve the current demand. The larger pressing companies are not competition either as they serve runs of 10,000+ records and are not interested in the small press space. In fact, small presses sometimes get sub-contracted from larger presses to complete orders when they are at capacity. This project is being led by a successful entrepreneur who is laser focused on the niche that will be served by this company. The overriding philosophy is to 'stay in our lane'. We are focused on just the vinyl pressing part of the record production process and thus do not require any expensive production engineers and processes. This is the brunt force, repetitive labor that others have chosen not to do, but is an absolutely essential step in the record manufacturing process. These are the types of projects we have performed over the years and have proven to be successful and profitable.
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