Business plan presentation for The Tower, created for Oklahoma City University's senior capstone business class.

3.  Centrally located venue for diverse
entertainment
 Housed in the iconic Tower Theatre in
Uptown 23rd
 The focal point of a district with high
potential growth

5. • The Tower will
host…
– Live Theatre
– Comedy
– Nationally and
Regionally Known
Musicians
– Film Premiers
– Private Events
• Elixir 37
• A unique and
inclusive
experience for
our guests

7. • Mid-sized entertainment venues that specialize
in diverse entertainment
• Industry grew by 8.8% in 2014, second only to
construction
• More entertainment options available

8. • Primary market is defined by regular attendees
• Broader target market for national acts
• Young professionals with a disposable income living in downtown,
midtown, and uptown OK
• Advocates for the “keep it local” movement, want to be involved in
the community, interested in the arts, history, and the preservation
of the tower theater
• Market share: 9.7% of the market share in seats in entertainment
venues based on capacity.
• Will increase because of competitive advantage

9. • Direct Competition- event venues, movie theaters, music
venues, and bars in the Oklahoma city area
• Closest competition in size- Rose State Performing Arts
Center, Gaylord Performing Arts Center, OCU Kirkpatrick
Auditorium, Riverwind Casino, and the Diamond Ballroom
• Their competitive advantage: long-time established and loyal
fan followings
• Our competitive advantage: Centrally located in OKC and the
historic nature of the theater
• Our competition based on capacity is located in Appendix A

11. • Values
– Experiences
– More than profit-centers
– Fitting in with peers
• Communication
– High social media use
– Word of mouth is invaluable

12. • Centralized Location
• Unique History & Experience

13. • Established market; must pull customers
from competitors by creating a unique
experience
• Art-Deco with a Modern Twist
– Art movement from the early 1900’s
associated with luxury and decoration
– Directly associated with the theatre’s history
• Creates a unique, memorable
entertainment space

16. • More than a profit center
• Partnerships with other arts related
businesses and non-profits
– Oklahoma Film & Music Office
– Oklahoma City University

17. • High value placed on peers
– WOM becomes very important
• Main efforts to increase brand
awareness
– Social Media
– Limited print and news advertisements

18. • Research shows this is the best way
to reach the age range of 18-35
• Focus on:
– Facebook
– Twitter
– Instagram
• Use of “Influencers”

22. • Board of Directors consisting of Regan,
Brandon, Carsen, Whitney and any investor
• CEO- Regan Shorter
• CFO- Brandon LaFluer
• Manager of Operations- Carsen Moon
• Theater Director- Whitney Reinke

24. Item Amount
Theater Equipment $200,000
Bar and Concession Equipment $25,000
Office Conversion $20,000
Extension of Backstage $100,000
Project Manager $20,000
Total $365,000

27. • Penetration Pricing: starting low and
gradually rising to meet competition
• Assumption grounded in theory:
– Price elasticity of demand for live
entertainment is relatively inelastic
Event
Prices (Weighted Average)
Year 1 Year 2 Year 3 Year 4 Year 5
National Music $ 23.00 $ 25.00 $ 26.00 $ 28.00 $ 30.00

28. • Simple formula for venue demand in Oklahoma
City:
Dn= S*Pn*Target Population*(1+g)n
Dn=Demand in Year n
S =Share of seats in Oklahoma City
Pn =Participation rate for activity
g= Average growth rate of Oklahoma City population
• Calculated annually for each type of event
• Adjusted for growing market share

29. Number of Tickets Sold (projected)
Year 1 Year 2 Year 3 Year 4 Year 5
230,883 236,197 285,383 317,838 352,825
Product
Purchases
Year 1 Year 2 Year 3 Year 4 Year 5
Facility Rental 36 36 36 36 36
Bar Purchases 92,353 94,479 114,153 127,135 141,130
Concession
Purchases
92,353 94,479 114,153 127,135 141,130

30. Year 1 Year 2 Year 3 Year 4 Year 5
National Live Plays 1,746,211$ 1,767,166$ 2,337,206$ 2,858,014$ 3,626,162$
National Music 1,268,772$ 1,442,171$ 1,790,650$ 2,264,084$ 2,810,339$
National Dance 147,914$ 149,689$ 240,453$ 355,883$ 400,171$
Misc. 549,000$ 555,588$ 562,255$ 569,002$ 575,830$
Movies (Including Premiers) 38,400$ 40,800$ 40,800$ 43,200$ 43,200$
Local/Regional Music 218,008$ 253,309$ 354,000$ 389,400$ 424,800$
Local/Regional Plays 245,369$ 248,314$ 306,000$ 324,000$ 324,000$
Local/Regional Dance 32,000$ 32,000$ 35,200$ 38,400$ 41,600$
4,245,674$ 4,489,036$ 5,666,565$ 6,841,983$ 8,246,101$
Year 1 Year 2 Year 3 Year 4 Year 5
Facility Rental 2,000.00$ 72,000$ 72,000$ 72,000$ 72,000$ 72,000$
Bar Purchases 6.00$ 554,119$ 566,873$ 684,920$ 762,811$ 846,779$
Concession Purchases 4.00$ 369,413$ 377,915$ 456,613$ 508,541$ 564,520$
5,241,206$ 5,505,824$ 6,880,099$ 8,185,335$ 9,729,400$Total Revenues
Event
Product
Price
Revenues
Revenues
Revenues from Ticket Sales
Average
Price
Varies
based on
5-year
price
schedule

32. The Tower,
LLC
2016 2017 2018 2019 2020
Sales
Tickets $4,245,674.42 $4,489,036 $5,666,565 $6,841,983 $8,246,101
Bar $554,119.00 $566,873 $684,920 $762,881 $846,779
Concessions $369,413.00 $377,915 $456,613 $508,541 $564,520
Rentals $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00
Total $5,241,206.42 $5,505,824 $6,880,098.77 $8,185,334.95 $9,729,400.14
Less: COGS $184706.40 $188,957.60 $228,306.71 $254,270.44 $282,259.82
Gross Profit $5,056,500.02 $5,316,866.40 6,651,792.06 $7,931,064.51 $9,447,140.32
%Increase 9% 21% 19% 19%
Operating
Expenses
$5,150,197.65 $5,278,257.00 $5,926,053.49 $6,552,697.85 $7,296,741.07
Less: Startup $365,000
Net Income ($458,698) $38,609 $725,739 $1,378,367 $2,150,399
%Increase 108% 1780% 90% 56%

33. 2016 2017 2018 2019 2020
Return On
Investment
(1.17) .09 .63 .54 .46
Return On
Assets
(1.15 .09 .90 .74 .59
Working
Capital
$26,802.37 $65,911.77 $792,150.34 $2,171,017.00 $4,321,916.24
Profit
Margin %
(.09) .01 .11 .17 .22

34. 2016 2017 2018 2019 2020
Rent $2,220,000
$2,220,000 $2,220,000 $2,220,000
$2,220,000
Property
Taxes
$42,931
$42,931 $42,931 $42,931
$42,931
Local Acts $346,201.50 $368,296 $ 467,130.00 $496,620.00 $515,920.00
National Acts $2,053,695.15 $2,159,660 $2,708,622.67 $3,305,777.03 $4,030,520.25
Utilities $26,010
$26,010 $26,010 $26,010 $26,010

35. • We request $850,000 from Angel
Investors for 40% ownership of The
Tower.
• Formula for Finding 40%
– Vpostmoney,Salevalue = $21,503,992
– Vpostmoney,Year1 = $2,150,399
– Vpre-money,beginning =$1,300,399
• 1,300,399/2,150,399 =60%
• 850,000/2,150,399=40%

36. • Expansion of business idea to other
venues
• 5-year Valuation for The Tower
Vpostmoney, sale value = Net Income Year 5 * Earnings Multiplier = $21,503,992
Investors’ Cash Exit Value = Sale Value * Investors’ Ownership =
$8,500,000
Investors’ Return Multiple = Cash Exit Value/ Initial Funding = 10
Investors’ Annualized Return = 58%

37. • Competition
– Growth of Oklahoma City could bring
potential competitors
• Oklahoma Economy
– Reliant on oil markets, with potential to
stunt growth
• Inexperience

38. • The Tower will be a unique venue with
an optimistic future
– Attendance: 52% growth
– Net Income: 82% growth
– 58% annualized return for our investors
• Unique opportunity to invest in
Oklahoma City’s renaissance