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Culture Entertainment Clubs Culture Entertainment Clubs Culture Entertainment Clubs 2017 1 Executive summary This report is a feasibility study on culture entertainment clubs in Bhutan. The proposed business will be mainly dealing with providing the entertainment services to people. The services are performing traditional dance, songs and music and even mask dances as well. The services will mainly be availed during the times of special events and occasions such as wedding ceremonies, inauguration ceremonies, and cultural shows, etc. With the modernization taking place, it is a crucial to preserve culture and traditions which has been passed down from our ancestors. (i) Justification of the Project: With the increased number in celebrations and occasions held in the country, and fewer number of culture entertainment providers, the proposed business found the urge to setup the business. (ii) Market Analysis: There is presently lesser number of culture entertainment clubs in Bhutan. Most of the people now are celebrating their birthdays, anniversary, promotion party and its now trending. (iii) Resources required: The equipment needed for this business are musical instruments such as, fiddle, flute, Dulcimer and Dramyen. It will be easily procured from the local seller who is very much expert in making those musical instruments. The other instruments like guitar, Drum sets, mic and mic stand will be procured from the Indian suppliers mention in detail below. (iv) Location of the Business: The location of the business should be in the main city, Thimphu, whereby most of the big events are held. The business will have one unit of apartment as a club at which the performances will be done. (v) Cultural Aspects: The entertainment service provided by the proposed business will fulfill one the pillars of “GNH” which is preservation and promotion of culture. It will not only promote the culture and tradition but will also show the unique identity of Bhutan. (vi) Implementation of the Project: The implementation of the project will take 12 months including pre-project activities. 1 Compiled By iBEST Consultancy Services Culture Entertainment Clubs 2017 (vii) Cost Presentation and Financial Analysis: Fixed Cost Nu. 321,500 Working capital Nu. 138,493 Total Investment Nu. 459,993 Break Even Point (BEP) 413 units Return On Investment (ROI) 173% Payback Period 3 year and 1 month The business achieves more than 173% ROI from its first year of production alone. The business will achieve its breakeven point at 413 units in 3 years and 1 month. It’s payback period will be 1 year and 8 months. 2 Compiled By iBEST Consultancy Services Culture Entertainment Clubs 2017 Contents 1 Executive summary ....................................................................................................................................... 1 2 Justification of the project ........................................................................................................................... 4 3 Market Analysis............................................................................................................................................. 5 3.3 Competitiveness of the project ............................................................................................................ 6 Culture oriented .......................................................................................................................................... 6 Location of the business .......................................................................................................................... 6 4 Resource............................................................................................................................................................ 6 4.1 Sources of raw material .................................................................................................................... 6 4.2 Suppliers Details for Modern Musical Instruments ............................................................... 7 5 Man power requirement and organization chart ................................................................................... 9 5.1 Specification of services provided by the business .................................................................. 10 6 Project Implementation Schedule ....................................................................................................... 12 7 Financial Analysis ...................................................................................................................................... 13 7.1 Total Project capital Costs ............................................................................................................. 13 7.2 Working Capital Costs..................................................................................................................... 14 7.3 Cost of Production per unit ........................................................................................................... 14 7.4 Human Resource cost ..................................................................................................................... 15 7.5 Marketing Cost ................................................................................................................................... 15 7.6 Project profit and Loss Statement .............................................................................................. 16 7.7 Projected Cash flow statement .................................................................................................... 17 7.8 Projected Balance sheet statement............................................................................................ 18 8 Financial Ratio analysis .......................................................................................................................... 19 8.1 Interest on loan ................................................................................................................................. 19 8.2 Break Even Point .............................................................................................................................. 19 8.3 Return on Investment ..................................................................................................................... 20 8.4 Net Present Value and Internal Rate of Return..................................................................... 20 9 Conclusion- Is project feasible ............................................................................................................. 21 10 Reference ................................................................................................................................................. 21 3 Compiled By iBEST Consultancy Services Culture Entertainment Clubs 2017 2 Justification of the project The need of the project One of the pillars of “Gross National Happiness” is a preservation and promotion of culture and tradition. The proposed business will focus on promoting this pillar and showcase the unique tradition and culture. Happiness is believed to be contributed by the preserving the culture. Developing cultural resilience, which can be understood as the culture’s capacity to maintain and develop cultural identity, knowledge and practices, and able to overcome challenges and difficulties from other norms and ideals. Cultural expression in Bhutan is as unique and sacred as the holy kingdom. Since there is growth in the number of organizing the events mainly wedding ceremonies, anniversaries, birthday parties, promotion, and other celebrations and occasion. There are only few performing art clubs like, Khuju Luyang, Lhayi Lugar, and Royal Academy for Performing Arts (RAPA), etc. Most of these venues do promote culture and tradition by performing folk dances and mask dances. The proposed business is unique as it provides band performance as well. It will be the collaboration of traditional folk songs with modern and contemporary musical instruments, which indeed will do a complete value addition. Competition Analysis The table mentioned below shows the competitors for this proposed business especially in Thimphu region and Paro. PERFORMING TROUPE Sl No. Name of the troupes Location 1 Lha-yee Lugar Performing Arts YDF, Simply Bhutan, Thimphu town 2 Khuju Luyang Changzamtog, Thimphu town 3 Yangchen Lugar Kichu, Paro 4 Tshangyang Dechen Pelter Paro 5 Minjung Luyang Thimphu town 4 Compiled By iBEST Consultancy Services Culture Entertainment Clubs 2017 6 Phuntsho Luyang Paro 7 Luma Doegar Thimphu town 8 Karma Phunsum Luyang Paro 3 Market Analysis 3.1 Demand vs. supply There are more than 17 drayangs alone in Thimphu and many other clubs such as Lhayi- lugar, Khuju Luyang, Kala Pingka. Even then it isn’t sufficient for the people residing over here in Thimphu. Thus the proposed business finds the greater demand for this business. 3.2 Pricing and Marketing Strategies Prices per Unit Year Performing traditional dances Performing Mask Dances Band Performance 1 5000 8000 10000 2 5000 8000 10000 3 5250 8400 10500 4 5513 8820 11025 5 5788 9261 11576 Note: The service charge has been increased by 5% starting from the third year. The service charge for the each service has been considered upon the market price of the competitors and existing clubs. Kuju Luyang, one of the competitors is basically the troupe of 12 performing a popular hour- long selection of religious, regional and folk songs and dances, including cham masked dances and songs from Laya and Sakteng, accompanied
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