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WebCT

MUM 2702
Music Business 2

Office setup assignment

1. You will find an Excel template attached to this document. The number of rows will vary with each group setup. Please be thorough and professional. This assignment will help you to explore the potential startup costs associated with your business and will assist you in making solid financial decisions once you are ready to assume the role of entrepreneur.

2. A QuickTime movie demonstrating how to manipulate an Excel document will be posted on the WebCT discussion thread and on the www.professorcalle.com website. Please refer to the movie if you have questions. If you cannot view the movie, please download the latest version of the free QuickTime player at www.apple.com/quicktime/mac.html. Apple's QuickTime is the standard for streaming video on the Internet and on telephones. Free Macintosh and Windows versions are available at the afore referenced URL.

3. A second QuickTime movie demonstrating how to copy and paste images from the Internet onto your Excel files is also included with this document. Please note the procedure is similar when copying and pasting images between any documents. Please insert a hyperlink to the URL location or website address of the item with your image. This will allow you and fellow users to locate the website by clicking on the image.

4. All monthly expenses will be calculated for a one-year period. In mathematical terms, this converts to 12 units of items such as utilities, subscriptions and recurring monthly items. A one-year limit may affect your ability to find office space in cases where the landlords want longer leases but will also output smaller, more manageable numbers and is realistic. Face it folks, if your business is not profitable after one year, you will need to reassess your plan and make necessary changes. These changes could include closing shop or moving to a more affordable location. Think big and act practically. The reference section of this assignment includes a variety of readings from some of America's most successful business, management and leadership professionals. You may want to spend time reading the words of people who have struggled and succeeded just like yourselves.

Office space:

Location
Cost per square foot
Services
Lease length
Floor diagram
Traffic
Reasons for choosing location

Office supplies:

Infrastructure - Construction, paint, decoration, frames, desks, chairs, couches, televisions, DVD players, creature comforts
Hardware - computers, hard drives, fax machines, copiers, phones, iPods, flash drives, paper shredders
Utilities - Electric, water, satellite/cable, DSL, telephone (land/cellular), satellite radio, Web site registration, Web site hosting
Supplies - pens, pencils, ink cartridges, software, stamps, envelopes, files, filing cabinets, lamps, radios, coffee maker,

Please include the following fro each item:
The item's image
The URL of the item to be attached as a hyperlink
Projected length of service of each item.

Note: As you know, technology tends to fail or become outdated. For example, my company is currently "refreshing" the cellular telephones after only three months of use. This is a typical office expense. Fiscally responsible companies account for costs associated with "refreshing" items such as copiers, computers and cellular phones. Refresh costs are a standard component of the annual budgets.

Communication: Please be specific about your planned communication structure. Communication may include but is not limited to:


E-mail service
Web site
Telephones
Cellular phones
Facsimile
Intercom/Walkie Talkies
Video conferencing (please visit this site regarding the video conferencing)
Pagers
Business cards
Letterheads

Legal and professional expenses

Lawyers - contracts, leases
Clerical - secretarial
Accounting - taxes
Cleaning services
Maintenance
Security services
Credit cards - annual dues (AMEX corporate)
Software - Quicken, Quickbooks, TurboTax, etc.
Copyrights
Patents
Fictitious names
Corporate filing fees
Health care
Child care

Production

Recording equipment - computers (please specify platform and why), interfaces, software, microphones, speakers, hard drives, blank CD/DVD
MIDI gear
Microphones
Sound reinforcement
Video
Digital photograph and video cameras

Transportation

Vehicles - leases, purchases, rental, insurance
How will you get to work? Taking the bus is a tough way to go while Metrorail may be an option if your office is located in downtown Miami.

Employees or partners

Employees:
Sub-contract labor? These are sub-contractors responsible for their own taxes, retirement and health insurance. Visit www.irs.gov for information detailing the parameters regarding a sub-contractor. Please note that employees who work 35 hours or more at a regular location cannot be considered sub-contractors and must be treated as employees.
Employers are required to pay 7.5% matching Social Security tax, must withhold taxes and may be required to grant sick leave, vacation days, maternity leave and other such responsibilities.
In any and all cases, all of you are bound to the laws of the land regarding discrimination, sexual harassment and fair treatment of workers. Please detail these requirements in your reports.

Partners:
Partners share the responsibilities and the wealth.
Partners have opinions, valid ones because of their contributions, and expect results.
In many relationships, one person contributes more than another. Make sure to work agreements that reflect each partner's contributions to the enterprise. Contributions may be in the form of financial, talent or expertise and business affiliations or connections.