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Dukes On The Dunes Proposal

Andy Dreyer
Andy Dreyer

Dukes on the Dunes is a proposed outdoor concert venue on Martha's Vineyard that will host jazz and classical performances from May to September annually. The organizers are requesting $905,400 from investors and outline plans to build the venue over two years starting in 2006. Financial projections estimate the venue will earn $3.7 million in revenue from ticket and concession sales in its first year of operation in 2007, yielding a net profit of $730,490.

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Dukes on the Dunes Chilmark, Marthas Vineyard
Location, Location, Location
At a glance Dukes on the Dunes is a beach side venue located in the Gay Head region of Marthas Vineyard, Massachusetts. We feature live concerts conducted by world- renowned jazz and classical musicians for our viewers pleasure.
Our Vision Dukes on the Dunes will consistently provide musical entertainment to those seeking a leisurely activity while vacationing on the beautiful island of Marthas Vineyard. The musicians chosen for our viewers entertainment will be representative of the finest selection of jazz and classical performers in the industry.
Our Mission To foster and maintain an industry dedicated to the making of music with the highest aspirations of musical art, creating performances and providing multiple levels of entertainment at the highest level of excellence.
Lets Talk Business Proposals were designed and approved by the Chilmark selectmen detailing dates of construction. Construction will begin in April of 2006 and will be finalized by April of 2007. Our events will begin in May of 2007. Our operating event schedule will be as follows 50 Total Shows 5 September 15 August 15 July 10 June 5 May
The layout of our venue will consist of two basic sections: The Shell and The Dunes The Shell, which is our pavilion area, will be broken down further into sections depending upon the distance from the stage (A,B,C,D, respectively) The Dunes, which is our sandy area behind the shell, is designated to those who wish to view the concert from a more casual seating arrangement
Whos running this business anyway? President Board of Directors: Andy Dreyer Maggie Doyle Emily Stone Box Office Manager Marketing/Booking Director General Manager Finance Director Maintenance Operations (On Site) Police Electrical Set Up/Clean Up Concessions On-Site Labor Ticket Sales Dukes On The Dunes: Organizational Chart
Demographics The population in Marthas Vineyard grows from 15,669 to over 100,000 people over the summer. Only 9.6% of the total island population is between the ages of 16-24. The population is mostly white. There are 48.9% males and 51.1% females. The average rental property is $3,250/week
Community Environment An increase in employment rate means employees will be reasonably easy to find. Dukes county has the lowest unemployment rate in Massachusetts. There are currently no competing venues that will make the startup of the new business difficult. Dukes on the Dunes will be open from mid May to end of September.
Business Environment It is much more affordable to build on Marthas Vineyard in comparison with other New England islands Marthas Vineyards commercial tax rate is 3.05% and Nantuckets is 4.99% The local government in Marthas Vineyard is very much involved with new businesses
Marketing: Top 3 Methods Public relations is a useful tool in creating a positive pitch to potential clients Advertising is a beneficial marketing tool because it can be done in areas that we feel are most desirable Publicity is a form of advertising that will attract clients and is free
Advertising: Media Radio: Covers most New England areas. Flyers: Cheaper and placed at hot spots. Newspapers: Core market is upper class. Word of Mouth: Best media method for start-up companies. Ferries: First thing people will see coming to the island by boat. Since a majority of the island is rentals, the clientele is recycled more frequently.
Advertising Costs Newspaper spread in Marthas Vineyard Weekly: $125 for 遜 page. Radio advertising: 3 month Massachusetts public radio commercials: $950. Color Flyers: $150 for 1,000. Our budget will cover these costs plus some extra $$$ left over and is not restricted to just the methods listed. The success of our business will largely depend on advertising.
Grand Opening Opening night featuring wine and ice cream tasting. Live orchestra for listening pleasure. Invitations will be sent to local businesses in order to promote our new venue in hopes they will pass the good word to customers. Food and alcohol cost will be about $55 per attendee due to the event being complimentary and will be subsidized by the venue.
$ Show me the money $
So where is the money going? Land costs Hard Construction Costs Soft Construction Costs Total Project Costs $2,881,500 $2,123,498 $1,033,233 $6,035,998
A wise investment The amount of money that we are asking from you, the investors, is $905,400 We will pay this sum back in roughly 4.5 years. We will divide the sum amount into roughly $200,000 per year. The investors return of investment will be 8%
What will this 8% get you? In the current economic environment, 8% is a good return relative to other investments you can go out and get. All investments are measured against a base case which any investor can go out and acquire with no trouble. That base case is US Treasury Bills, which are IOU's issued by the United States Government. Right now, the US Treasuries are averaging roughly a 4.5% rate of return of investments.
About that 6 million and change ($77,829) over 5 months ($389,146) annual Payment ($32,429) Monthly Payment 30 Amortization Schedule 0.065 Interest Rate $5,130,58 Loan Amount Mortgage Annual Debt Service Expense
What it looks like in 2007 By averaging out our seating costs and venue capacity we project that 146,404 seats will be sold bringing in $2,553,540 in revenue. In addition to seats sold we also incorporated average costs for add-on products per attendee which generates $1,177,597 in revenue. The seating costs and add-on products total out to $3,731,137 per fiscal year. Our total net benefit for 2007 will be $730,490 .
We are a business demanding a lot of money from a market that has a lot of money!
To Summarize By investing in Dukes on the Dunes, investors will profit exponentially because they will gain almost twice the amount of an average investment. After reviewing our financial documents, it is clear the risk of investing in our company is minimal, while the outcome is profitable.
Risky Business All investments are risky!!! The only risk here is not investing.

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Dukes On The Dunes Proposal

  • 1. Dukes on the Dunes Chilmark, Marthas Vineyard
  • 3. At a glance Dukes on the Dunes is a beach side venue located in the Gay Head region of Marthas Vineyard, Massachusetts. We feature live concerts conducted by world- renowned jazz and classical musicians for our viewers pleasure.
  • 4. Our Vision Dukes on the Dunes will consistently provide musical entertainment to those seeking a leisurely activity while vacationing on the beautiful island of Marthas Vineyard. The musicians chosen for our viewers entertainment will be representative of the finest selection of jazz and classical performers in the industry.
  • 5. Our Mission To foster and maintain an industry dedicated to the making of music with the highest aspirations of musical art, creating performances and providing multiple levels of entertainment at the highest level of excellence.
  • 6. Lets Talk Business Proposals were designed and approved by the Chilmark selectmen detailing dates of construction. Construction will begin in April of 2006 and will be finalized by April of 2007. Our events will begin in May of 2007. Our operating event schedule will be as follows 50 Total Shows 5 September 15 August 15 July 10 June 5 May
  • 7. The layout of our venue will consist of two basic sections: The Shell and The Dunes The Shell, which is our pavilion area, will be broken down further into sections depending upon the distance from the stage (A,B,C,D, respectively) The Dunes, which is our sandy area behind the shell, is designated to those who wish to view the concert from a more casual seating arrangement
  • 8. Whos running this business anyway? President Board of Directors: Andy Dreyer Maggie Doyle Emily Stone Box Office Manager Marketing/Booking Director General Manager Finance Director Maintenance Operations (On Site) Police Electrical Set Up/Clean Up Concessions On-Site Labor Ticket Sales Dukes On The Dunes: Organizational Chart
  • 9. Demographics The population in Marthas Vineyard grows from 15,669 to over 100,000 people over the summer. Only 9.6% of the total island population is between the ages of 16-24. The population is mostly white. There are 48.9% males and 51.1% females. The average rental property is $3,250/week
  • 10. Community Environment An increase in employment rate means employees will be reasonably easy to find. Dukes county has the lowest unemployment rate in Massachusetts. There are currently no competing venues that will make the startup of the new business difficult. Dukes on the Dunes will be open from mid May to end of September.
  • 11. Business Environment It is much more affordable to build on Marthas Vineyard in comparison with other New England islands Marthas Vineyards commercial tax rate is 3.05% and Nantuckets is 4.99% The local government in Marthas Vineyard is very much involved with new businesses
  • 12. Marketing: Top 3 Methods Public relations is a useful tool in creating a positive pitch to potential clients Advertising is a beneficial marketing tool because it can be done in areas that we feel are most desirable Publicity is a form of advertising that will attract clients and is free
  • 13. Advertising: Media Radio: Covers most New England areas. Flyers: Cheaper and placed at hot spots. Newspapers: Core market is upper class. Word of Mouth: Best media method for start-up companies. Ferries: First thing people will see coming to the island by boat. Since a majority of the island is rentals, the clientele is recycled more frequently.
  • 14. Advertising Costs Newspaper spread in Marthas Vineyard Weekly: $125 for 遜 page. Radio advertising: 3 month Massachusetts public radio commercials: $950. Color Flyers: $150 for 1,000. Our budget will cover these costs plus some extra $$$ left over and is not restricted to just the methods listed. The success of our business will largely depend on advertising.
  • 15. Grand Opening Opening night featuring wine and ice cream tasting. Live orchestra for listening pleasure. Invitations will be sent to local businesses in order to promote our new venue in hopes they will pass the good word to customers. Food and alcohol cost will be about $55 per attendee due to the event being complimentary and will be subsidized by the venue.
  • 16. $ Show me the money $
  • 17. So where is the money going? Land costs Hard Construction Costs Soft Construction Costs Total Project Costs $2,881,500 $2,123,498 $1,033,233 $6,035,998
  • 18. A wise investment The amount of money that we are asking from you, the investors, is $905,400 We will pay this sum back in roughly 4.5 years. We will divide the sum amount into roughly $200,000 per year. The investors return of investment will be 8%
  • 19. What will this 8% get you? In the current economic environment, 8% is a good return relative to other investments you can go out and get. All investments are measured against a base case which any investor can go out and acquire with no trouble. That base case is US Treasury Bills, which are IOU's issued by the United States Government. Right now, the US Treasuries are averaging roughly a 4.5% rate of return of investments.
  • 20. About that 6 million and change ($77,829) over 5 months ($389,146) annual Payment ($32,429) Monthly Payment 30 Amortization Schedule 0.065 Interest Rate $5,130,58 Loan Amount Mortgage Annual Debt Service Expense
  • 21. What it looks like in 2007 By averaging out our seating costs and venue capacity we project that 146,404 seats will be sold bringing in $2,553,540 in revenue. In addition to seats sold we also incorporated average costs for add-on products per attendee which generates $1,177,597 in revenue. The seating costs and add-on products total out to $3,731,137 per fiscal year. Our total net benefit for 2007 will be $730,490 .
  • 22. We are a business demanding a lot of money from a market that has a lot of money!
  • 23. To Summarize By investing in Dukes on the Dunes, investors will profit exponentially because they will gain almost twice the amount of an average investment. After reviewing our financial documents, it is clear the risk of investing in our company is minimal, while the outcome is profitable.
  • 24. Risky Business All investments are risky!!! The only risk here is not investing.