S9 ENTERTAINMENT CONSULTANTS

HEZEK BUSHERIANETA FILICIAK

RAVI AKULA

Title Page

We provide non-for-profit (NFP) organizations with new avenues for fundraising services helping them meet their organizational

mission and objectives

Specialized Entertainment Services Customized Specific to the Cause &

Turn-key Event Fundraising Services

VALUE PROPOSITION

PRODUCTS &

SERVICES

Problem

NFP

FU

ND

RA

ISIN

G C

HA

LLN

GES

Insufficient Operating Funds

Operating Costs

Dependence on Single Funding Source

Lack of Human Resources

Lack of Operational Skill

Fragmented Fundraising Efforts

Low Visibility Events

Competition for Funds NOT ENOUGH MONEY

NOT ENOUGH RESOURCES

NOT ENOUGH VISIBILITY

Market Opportunity – Non-For-Profit Sector

CANADA

165,000 NFPs and Charities in Canada2M people employed (11.1% of the population)

$106B in revenues (7.1% of the GDP)

ONTARIO

50,905 NFPs and Charities in Ontario 297K people employed

$67B in revenues

Ontario NFPs report average revenues of more than $1.3M One-in-four (~13K) say that they took in less than $25,000 of revenue last year 69% of NFPs use special events as a source of fundraising where the content of the event is not directly linked with

the cause (i.e. marathons) 75% of organizations find it challenging to meet the organization’s mission and objectives due to insufficient funds

MARKET OPPORTUNITY

38K NFPs

Market Opportunity – Entertainment Industry

*http://www.fastcompany.com/1794113/live-music-needs-tuneup-entice-audiences-tomorrow

THERE EXISTIS AN OPPORTUNITY TO PROVIDE NFPs WITH NEW AVENUES FOR FUNDRAISING BY PROVIDING SPECIALIZED ENTERTAINMENT SERVICES

Social events centered around live music entertainment are on the rise Concert ticket sales have tripled over the last decade in NA (~$5B) 37% of fans are expected to attend more concerts YOY in 2013

Ontario represents 80% of the live entertainment industry of Canada

People place a higher and higher value on authentic live interaction than ever before and are willing to pay for it*

S9 EC Solutions

PRODUCT

Specialized Entertainment Services Customized Specific to the Cause

Supported by the NFP

SERVICE

Turn-key Event Fundraising Services

Increased engagement driven by content directly linked to the cause

Unique Customer Experience leads to increased demand

Minimized touch points for the NFP Frees up NFP resources to focus on

delivering programs and services Combined marketing efforts increase

visibility of events

SOLUTIONS NFP BENEFITS

Product Examples

GOAL: ESTABLISH AWARENESS

Scenario: Live Concert Audience Profile: Broad

Audience GroupRevenue Sources: Ticket Sales & Donations ($$)

GOAL: DRIVE ACTION

Scenario: Interactive Engagement

Audience Profile: VolunteersRevenue Sources: Donations

($)

GOAL: DEEPEN ENGAGEMENT

Scenario: Performance Theatre

Audience Profile: Committed to the Cause

Revenue Sources: Ticket Sales & Donations ($$$)

Working together with the NFP, S9 EC will develop a customized event where the content theme is based on the issue or cause

The event type will be driven by the goal that the NFP wants to achieve:

COMMUNITY

Business Model

NFP S9 EC

CORPORATE SPONSOR EVENT

ATTENDEES

SPECIALIZED ENTERTAINMENT

EVENT

Funding from Corporate

Sponsor to NFP

S9 EC Cost + Premium

Costs to Market Event to the Community Costs to Market

Event to the Community

Costs to Design, Plan and Execute Event

Ticket Sales

Revenue from Ticket Sales is Shared Between S9 EC and NFP and All Donations Go to NFP

Donations

Donations

Increased Branding

Competitive Landscape

Type Advantages Disadvantages Our Advantage

Other NFPs

Corporates

Experienced in organizing fund raising events (runs, climbs, etc.)

Established network of stakeholders

Overwhelmed by effort in organizing these events

Community’s motivation to participate is not necessarily inspired by the cause

Significant internal resources used to select NFPs to support

Dense corporate bureaucracy extends timelines

One-stop shop that creates content, organizes and markets entertainment shows

Provides richer entertainment experience to participants inspired by fund raising cause

Become the hub to market small scale NFPs to Corporates looking to support their cause

Allocate and mobilize resources to scale their fund raising events and provide richer experience

Access to corporate funds

Marketing Plan

Customer Type Acquiring Customers Channels Communication

NFPs• Sales team to build

relationships with NFPs and other stakeholders

• Product will be delivered via web and local venues

• Push strategy to engage and collaborate with NFPs

• Invite NFPs to attend our gigs to experience our products/services

• Word-of-mouth advertising • Articles by media and

journalists

End Consumers

(Event Attendees)

• Leverage digital channels and social media to build interactive relationship with our end customers

• Tickets will be sold online through our website

• Direct Marketing using Pull strategy

• Web site (and a blog) to convey our brand, identity, story and product offerings.

• Display ads on social media and music events websites

• Tools such as Virool and SEO optimization

Pricing Structure & Models

Pricing Model 1 – With Corporate Support

Pricing Model 2 – Without Corporate Support

• Price for NFP follows Cost-Plus Model for events

• Plus = ~30%• Revenue Sharing of Ticket

Sales = ~20-30% / 70-80% split S9 EC / NFP

• 100% Donations go to NFP

• Price for NFP follows Discount Model for events

• Discount = ~0-50%• First Claim to Revenue for

Cost Recovery of Discount • Remaining Revenues are

Shared between S9 EC & NFP• 100% Donations go to NFP

Adv No financial risk to NFP or S9 EC Free reign over the content and event format

Disadv Possible constraints on the event format and content from the Corporate Sponsor

Financial risk for NFP and S9 EC of not recovering costs

Financial Overview

ASSUMPTIONS Approved for $500K

loan for start up $150K annual salaries

($50K x 3) Costs of marketing

events = 20% of the total event cost

1 additional resource in Q3 – Y2

2 additional resources in Q3 – Y3

Average premium above costs = 30%

Revenues sources from events start:

Small Q3 – Y1 Medium Q3 – Y2 Large Q2 – Y3

Revenue from Ticket Sales = Event Costs

Q1

- Y1

Q2

- Y1

Q3

- Y1

Q4

- Y1

Q1

- Y2

Q2

- Y2

Q3

- Y2

Q4

- Y2

Q1

- Y3

Q2

- Y3

Q3

- Y3

Q4

- Y3

Q1

- Y4

Q2

- Y4

Q3

- Y4

Q4

- Y4

Q1

- Y5

Q2

- Y5

Q3

- Y5

Q4

- Y5

-$200,000-$100,000

$0$100,000$200,000$300,000$400,000$500,000$600,000

Cash Inflows Cash Outflows Net Cash

Losses in Year 1 ($167K) and Year 2 ($77K) Break-even in Q1 of Year 3 Consistent growth in income in Year 3 onward (Y3 - $115K, Y4 - $294K, Y5 - $492K)

Management Team

HEZEK BUSHERI 10+ years music production and

live entertainment experience 4 years experience as a

recording studio engineer 6 years management experience Energy consultant for Ontario

ANETA FILICIAK Professional consultant

experienced with solving ambiguous business problems

5+ years experience with visual production and digital marketing

Financial management expertise

RAVI AKULA Exploring human centered

design to solve complex social problems

IT project manager serving MNCs in US and Canada

Supporting organizations helping children with special needs

VINCE BREWERTON CEO Imagico Inc. Helped many not-for-profit and

public sector organizations grow Advisor at CSI Strategist who helps leaders and

organizations grow

REBA JOY Development Coordinator, Right-

to-Play Develops university partnerships

and online initiatives

BRIAN G SMITH Organizing fundraising events for

NFPs Award-winning alumnus of The

Second City Created film, television, and

theatre in Canada and Barbados

Exe

cutiv

e Te

amA

dvis

ory

Team

Conclusion

We provide non-for-profit (NFP) organizations with new avenues for fundraising services helping them meet their organizational

mission and objectives

Specialized Entertainment Services Customized Specific to the Cause &

Turn-key Event Fundraising Services

WHAT

HOW

One-stop shop that creates content, organizes and markets entertainment shows which provides a richer entertainment

experienceHOW

Appendix

Financial Model

Q1 - Y1 Q2 - Y1 Q3 - Y1 Q4 - Y1 Q1 - Y2 Q2 - Y2 Q3 - Y2 Q4 - Y2 Q1 - Y3 Q2 - Y3 Q3 - Y3 Q4 - Y3 Q1 - Y4 Q2 - Y4 Q3 - Y4 Q4 - Y4 Q1 - Y5 Q2 - Y5 Q3 - Y5 Q4 - Y5Cash Inflows Loan 500,000 Event Revenue - - 19,500 26,000 26,000 26,000 58,500 58,500 91,000 110,500 156,000 91,000 123,500 175,500 208,000 188,500 221,000 253,500 188,500 266,500 Ticket Sales - - 15,000 20,000 20,000 20,000 45,000 45,000 70,000 85,000 120,000 70,000 95,000 135,000 160,000 145,000 170,000 195,000 145,000 205,000 Total Inflows - - 34,500 46,000 46,000 46,000 103,500 103,500 161,000 195,500 276,000 161,000 218,500 310,500 368,000 333,500 391,000 448,500 333,500 471,500

Cash OutflowsRent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 SG&A 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 Other 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 Repay Loan 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Additional Resources - - - - - - 7,500 7,500 7,500 7,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 Marketing Costs - - 3,000 4,000 4,000 4,000 9,000 9,000 14,000 17,000 24,000 14,000 19,000 27,000 32,000 29,000 34,000 39,000 29,000 41,000 Event Costs - - 15,000 20,000 20,000 20,000 45,000 45,000 70,000 85,000 120,000 70,000 95,000 135,000 160,000 145,000 170,000 195,000 145,000 205,000 Total Outflows 51,250 51,250 69,250 75,250 75,250 75,250 112,750 112,750 142,750 160,750 217,750 157,750 187,750 235,750 265,750 247,750 277,750 307,750 247,750 319,750

Income (51,250) (51,250) (34,750) (29,250) (29,250) (29,250) (9,250) (9,250) 18,250 34,750 58,250 3,250 30,750 74,750 102,250 85,750 113,250 140,750 85,750 151,750

State of the Sector Report on NFP Revenue - 2013

State of the Sector Report on NFP Revenue - 2013

Canada NRC – 2012

Source: Canada Nonprofit Research Collaborative 2012 Report

Growth in NFP Fund Raising in Canada via Events and Online

Source: Canada Nonprofit Research Collaborative 2012 Report

Sample Marketing and Advertising Channels for Entertainment

Source: Kotler and Keller – Marketing Management (14E)